ETEC was on the watch list and I don't think the situation is that dismal. This is a company that is a leader in a market for its mask pattern generations. They have a lions share of the market, around 78% I actually think ETEC would make a good long term hold. There niche is very profitable and they basically are the dominant leaders. analsysts say that ETEC could ....reap a massive windfall from the ongoing upgrade cycle in the chip industry.
. The mask-writing equipment market is estimated at $400 million for 1998, and analysts generally foresee a 20% compound annual rate of growth for the next several years.
This niche is small but lucrative, fast growing, and with positive pricing trends. Etec's pattern-generation systems use laser- and electron-beams to create photomasks, which are like stencils used to guide the printing of circuit patterns onto semiconductor wafers. Chip designs are continually moving toward greater complexity with tinier and tinier circuitry, driving demand for leading-edge photomask technology.
Unlike most areas of technology these days where prices are continually falling, average selling prices in many segments of the system for its 0.25-micron machines, compared to $6 million for previous generation machines that provide line-widths of 0.35-micron. For the next smaller geometry of 0.18-micron, which could begin shipping in the next quarter or two, Etec is expected to bring in $12-$14 million per unit. These smaller geometries enable chipmakers to pack more circuitry onto chips, creating higher performance. chip equipment business are rising sharply with each step up in performance. Etec, for example, is getting around $10 million per
per system for its 0.25-micron machines, compared to $6 million for previous generation machines that provide line-widths of 0.35-micron...
I've been bullish on this for 4 earnings quarters.. Its been on uptrend for 4 days, although I do think inevitably it will pull back, its still a stock worthy of tracking.
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