the report is too long, give them a call, they may fax you a copy. there's nothing in the report that can be either implied or overtly stated as being negative. the short traders enjoy this stock. it is possible that traders have the notion that asia will form a greater impact on teradyne than what teradyne has previously stated, but the report is clear that (a) orders are strong, (b) teradyne's testing design-ins grew from 13 in 1995 to 20 in 1996 to mid-40s for 1997 and is increasing substantially, (c) new products are ramping sharply, (d)orders remain above management's internal forecasts with no "overt...financing (refering to Atmel's problem), (d) foundries are driving continued strong growth in Asia with Taiwan bookings growing from 8% to 25% this year, (d) they introduced a new generation of test simulation software, the VX family, with the Department of Energy purchasing a cataylst test system which (implied) may lead to significantly more sales (e) only now are many customers reporting that they are getting around to replacing three-four generation-old products due to the rapid increasings in device performance.
It reviews other multi-million dollar contracts Teradyne has recently only recently and states "Teradyne is the only fully diversified ATE supplier, with a leadership position in all areas of semiconductor test...". It goes on "in addition we believe that Teradyne's J996 (introduced at Semicon - my comment here) memory tester is the only true resource-per-pin memory tester to handle the 250MHz sppeeds increasingly demanded as the DRAM industry moves rapidly to SDRAM..., Rambus and other fast-addressing architectures."
There is much more in the report, so you'll need to get a copy for yourself.
Interestingly, all this bodes well for Cymer since it is another confirmation that firms are moving quickly forward with .25mu production. |
