This is from the Aug. 6, 1998 CNBC interview with IBIS TECHNOLOGY CEO MARTIN REID.
EXCERPT:
Mark: You mean, when you say one times I take it what you mean it
will still cost twice much has to other technology.
The bulk technology, of a silicon 8-inch wafer typically costs about
100 dollars per wafer, and when we do our process on it you, add
about another 100 dollars, in large volumes, and the advantox
process.
Mark: Aren't you facing uphill battle though? Because in the
electronics industry the rule is prices go down and if people adopt
your chip technology they ether have to cut costs somewhere else
when they make products or raise their prices.
Well, all of the fabs and all of the semiconductor industry are
constantly looking -- look for ways to improve the semiconductors, if
you can reduce your power to one third or one fifth what you are using
plus increase your speed, in some cases, 35% in some cases, two to
three times your speed, an extra you know 10% cost is not a problem.
Mark: Okay so your pitch is spend money up front with me, you will
save money further down the line?
Absolutely.
END EXCERPT
Source: NASDAQ NEWS
nasdaq.com./asp/quotes_news.asp?symbol=9999&selected=IBIS&prevselected=9999&news=MARKET
In view of the current stock price, I thought it might be appropriate to review the justification for buying IBIS. I believe that his reference to a 10% cost increase was relative to the finished product.
EXCERPT from earlier in the conversation:
Well, the substrate costs maybe one to two times more than the regular
substrate but the end wafer cost only increases about 10%.
END EXCERPT
I'd have to say that this stock has been over sold during this market correction.
Long IBIS,
HerbVic |
