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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: ScotMcI who wrote (22372)	7/2/1999 9:03:00 PM
From: orkrious	Read Replies (1) \| Respond to of 25960

Something that I don't recall having heard before (could be my memory, though) is that the transition to direct support was responsible for some of the falloff in spares and service last quarter. Scot, it is your memory. See this section of my annual meeting post: This was my biggest concern. It turns out to be a non-issue. Reading the press release, it seemed that their service and spares revenue would diminish over time. The lifetime warranty is only on the chamber, and it is only for so many pulses. Clearly, the warranty means we will get less revenue than we would have without the warranty, but it won't have that big an effect. The biggest reason service and spares decreased in Q1 from Q4 was than in the past the integrators (Nikon, ASML, etc.) carried the service and spares inventory. Now the end users do. There was a time lag as the integrators inventory was used up. BTW, the margins will be higher dealing directly with the end users. Message 9652474 Jay

To: ScotMcI who wrote (22372)	7/3/1999 3:13:00 PM
From: ScotMcI	Respond to of 25960

News from zdnet.com. Let's hope this portends a quick end to the same type of suit against Cymer. Court victory for high-tech firms Federal court upholds Litigation Reform Act -- making it harder for shareholders to sue companies. By Paul Elias, ZDNN July 2, 1999 11:43 AM PT In a major victory for high-tech companies, a U.S. federal appeals court Friday upheld the Private Securities Litigation Reform Act. The law, passed by Congress in 1995, makes it more difficult for disgruntled shareholders to sue companies when their stock drops. Such class action lawsuits have become commonplace and cost the industry hundreds of millions of dollars a year. The ruling in the much-watched SGI (NYSE:SGI) case means that in order to sue for stock fraud, plaintiffs must now show corporate officers intentionally lied about optimistic financial forecasts that turn out to be wrong. Before the law, plaintiffs merely had to simply show the forecasts were misleading. The ruling is the second significant victory for Silicon Valley companies fighting to stay out of court. On Thursday, Congress passed a law that will protect high tech companies from the class actions expected in the wake of Y2K failures. More details to follow.