<< CYMI might have the sharpest engineers, they clearly don't have sharp management. Akins is a scientist not a businessman. They need someone who can manage crisis and investor relations >>
Pass pass, I think you hit the nail right on the head. The issues that have been overlook are INTANGIBLES . Akins is just a brilliant scientist but for a PR man he desperately needs help from a professional.
The entire episode started when Akins and Angus abruptly pulled out from that Needham conference. No explanation until a few days later (Saturday), no apology, and just woof ... they left for San Diego. Granted that they had a very legitimate reason to do that. But from a PR standpoint? That was a big No No and even later Akins admitted that was a mistake, such that if the situation arises again he will not pull out from a scheduled talk.
Those who attenteded that Informed Investors seminar came all the way to San Diego to hear Cymer's presentation. That was the highlight of that meeting, and even more so after that Needham episode. When the meeting started the sponsor of that seminar expressed some anxiety for not knowing whether Cymer would show up. "Just wait and see until 10 am which was the time for the company to take the floor". The company did show up: Akins, Angus and Cole. Their presentation was professional and they and gave excellent view of Cymer. However the answers about Needham were vague, leaving people wondering what had happened. We later learned that the issue was a pushout delivery and they had to walk a thin line to respect customer's confidentiality . They used the term issue and the word pushout was given the following week
Let us review the above: if you guys who were in that meeting and were stood up buy Cymer, how would you feel? Each of you have your emotions, anxiety, curiosity and other feelings which would made you at least disappointed.
Now go back to Needham's conference. Cymer was one of the GUEST OF HONOR, it was invited to make a presentation. How would those analysts feel (M & M - Monty and Morgan and the rests) who came all the way to the meeting and was stood up by the guest of honor. How would the host feel? Offended? Probably. Imagine that yourself if that happens in your house.
No apology, vague explanation, poor PR such that Akins statement and restatement and also Angus reassurance were drowned by rumors, innuendos, speculation, assumptions etc. Monty's downgrade was based more on rumors of Cymer customers having problems.
Why has not Needham's analyst issued an updated opinion? Probably it does not want to be perceived as a retaliatory action. On the other hand it is interesting to note that Monty gave a downgrade a few days before Monty's conference at which Cymer was to give a presentation. It was then reported that Cymer's talk was very short and it was a non-event.
Cymer is a great company in the field. I believe that in the long run many chip manufacturer will depend on its product. Nevertheless it is not enough just to have excellent product to reward its shareholders. An excellent PR and good relationships with the investment houses and analysts are essential. Just look at AOL. That turkey flies although it has negative working capital, never make any money and poor service (busy, undelivered/late e-mails etc).
More later about the intangible.
Peace be with everyone of you.
Andre.
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