Vinh, I just listened to the CC. It's really an open, informative session. Refreshing compared to many companies. Certainly a lot to digest. This company is getting so diversified, yet it's still comes back to the basic question of continued got economic strength driving demand. That's anybodies call.
Your notes are good. I'll add a little.
One note was that they have resolved all outstanding receivables from last quarter with full payment. Therefore, AR is down and it's solid.
Inventory is also down, but at a level that they feel will allow them to quickly satisfy any demand as it comes. They have no back log. "Visibility changes by the second".
Expect circuit board makers to have a tough sumer. Demand for laser drilling will be good as will high end mechanical. ESI is leading both these groups technically and this will support growth going forward, but lower end mechanical drilling will be faced with high competition from Japan and they have lower cost basis with the yen.
Curious notes on Memory. Korea was strong this quarter and US and Europe was not so strong. Korea seems to be pushing into higher capacity DRAM. Also noted the comment on TI/MU deal. They said MU had been slow adding equipment for higher capacity DRAM, but this could be changing. TI was a good customer for DRAM, but also for Logic which they will continue to develop.
One analyst tried to pin them down on a EPS projection for next quarter of .25 to .30, but management wouldn't give it comment. Seems like a pretty low figure. Hoping they can get costs in line for something better.
I think they tried to be positive saying things could quickly get better, but they can't count on much. Probably be flat to slightly down. Encouraging to see the stock didn't sell off much and even trading up today. Only 11 million shares in the float, so most on the major shareholders are hanging tight. Sure looks like it'll still be a good company to hold for the next 2 years.
Regards,
Mark |
