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Technology Stocks : Electro Scientific???

ESIO 29.99

0.0%

Feb 1 4:00 PM EST

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To: Box-By-The-Riviera™ who wrote (410)	7/7/1998 11:29:00 AM
From: vinh pham	Read Replies (1) of 723

Summary of conference call: Break down of sales: 1998 1997 Q4 Q3 Advance Packaging 19% 29% 20% Capacitors 28% 25% 31% Memory Repair 27% 23% 25% Circuit Fine Tunning 12% 14% 12% Vision 14% 9% 12% Geographic Breakdown: US 43% 36% 42% 41% Asia 26% 23% 30% 24% Japan 16% 22% 14% 21% Europe 16% 19% 14% 14% Expect to be 10% below current level next 2 quarters, hope for recovery in second half Smith & Barney - Where decrease of 10% will be & detail on cost cutting efforts Adv - low margin - bright spots CAP - will be flat Semi - optimistic CFT - optimistic - bright spots Vision - not sure Shutdown Santa Ana except for engineering Pour resources into Advance Packaging -- i.e. Palomar resources to Santa Ana Remove some reps - consolidate sales Stop Hiring Get rid of temporary - 10% of labor Piper J - Why Memory Yield down year to year Weak outside of Korea Japan is buying some Expect to be flat going forward Piper J - Outlook for 99 About 200 to 210 millions - not firm - could change dramatically in second half on upside Gross Margins go down? If sales at $50/quarter millions then closer to 53% margin Nations Bank - Backlog? Cancellation and push outs are virtually zero Short order cycle Nations Bank - TI / Micron Acq? Don't know - had good relations with both Micron have been quite State Street Research - Which operations would have low rev going forward? Vision - due to KLIC and Universal Adv Pack - record rev last quarter - will not go up this quarter, growth business long term - good large base of customers Expense? Low double digits in R&D, 23 - 26 SGA Allowance for doubtful accounts - very small number < 1 million Defered Rev - $400,000 Black and company - details for gross marging from 56% to 50% $4 million down in gross margin 50% related to customer mix and products 50% inventory write down, higher warranty costs, lower revenue Expect gross margin to be 53% going forward Head count > 900 including temporary Amin & Co.? - Opportunity with advance packaging - price pressure Specialize in high end -- is ESI insulated? Mechanical drill see pricing pressure because of competition from Japan Go for bigger customers with more financially stable Any significant customer? Can't talk about it. Team to meet one of the larger customer. Customer count is high, no one major customer risk. Shipped over 100. Technology going main line. Capacitor arrays - at least one major customer is using them. Going into smaller lap tops Less than 10% in capacitor arrays. How do will ESI get growth - increase PC part counts? Complexity is more inportant Acquisitions ???? Actively looking all the time - next several quarters things could get interesting. Add another leg to business? Add another leg to business or enhance one of the current leg. Piper Jeffery - outlook? Underlying demand is strong. Customer nervous. CEO is worry about global economy. Cap customer on high end not buying....lower end buying Alex Brown - How do we pull out of the current low? Don likes Adv Packaging Memory good business - but currently not a growth business Vision lag Winger asset managements - design wins for Vision? Still doing good with KLIC Concentrate wafer ID - installed over 100 systems (non OEM ) - big names in market Major design win not announced yet. Will announce in the next several months. Other expense 119,000? gain on assets/litigation --- this year was for terminating lease on 3rd building Don - announce Taylor Board assignment.

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