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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (3465)	10/21/1999 3:39:00 AM
From: Jong Hyun Yoo	Read Replies (3) \| Respond to of 5867

Brian, as far as guess on the earning is concerned, I am going to stick with 53 to 55 cents per share based on 245 to 250 million in revenue figure. However, I do believe that there could be a substantial upside to my guess. I did some upside estimation based on analysts' comments. This is a very very optimistic estimation but LRCX just MIGHT MIGHT do revenue number in excess of 260 million and EPS of somewhere around 65 cents. Well.... I could be wrong but who knows, right? Somethings that I have heard and I am looking to verify this over the conference call: 1) TSMC has initially ordered 10 TERES systems and chose TERES as a tool of record, which means follow-up order is likely. 2) LRCX has won oxide etch business with MOTOROLA account over AMAT with EXELAN product. 3) INTEL is reevaluating the plan to reuse the old tools for 0.18 um as they are faced with the yield issues. INTEL might place new orders as they scrap reuse plan of the old equipments. 4) INTEL is about to name CMP tool of record for the copper process and LRCX is a serious contender. One beautiful thing about LRCX earning potential is that LAM is already making just as much as AMAT or NVLS per Q on much lower gross margin. (low 40% vs mid 50%) As the pricing environment improves and volume picks up, LRCX can improve its GM significantly from the current level. This is where the fun begins. LRCX EPS can then really take off to the moon. Good luck..