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Technology Stocks : Comdisco, Inc. (NYSE: CDO) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (261)	12/8/1999 8:44:00 AM
From: Bosco	Read Replies (1) \| Respond to of 689

G'day all - while CDO sold its mainframe leasing to IBM for ~$480MM, evidently, it has other leasing operation [doh! clueless that I was] From CBS MarketWatch cbs.marketwatch.com best, Bosco [Full article below, in case the link gets expired] NEC in lease deal with Comdisco By Mariko Ando, CBS MarketWatch Last Update: 9:31 PM ET Dec 7, 1999 NewsWatch TOKYO (CBS.MW) -- NEC Corp. has confirmed a deal to lease semiconductor-fabrication equipment from Comdisco Inc., a major U.S. leasing firm, in a bid to minimize its capital investment burden and to improve profitability. NEC officials confirmed the deal late Wednesday morning in Tokyo after the Nihon Keizai daily newspaper reported Wednesday that the world's second-largest semiconductor maker signed one of the biggest-ever leasing contract with U.S. leasing giant. According to NEC spokesman Aston Bridgman, one type of equipment NEC (NIPNY: news, msgs) is planning to lease from Comdisco (CDO: news, msgs) is called "steppers," which are used in the chip process to draw fine lines on the circuitry of chips. Bridgman said that by leasing equipment from other companies, NEC eases the burden on its capital investment program. Under the agreement, NEC would sell Comdisco about $272 million worth of equipment installed this fall in plant in Japan's Yamagata prefecture. NEC will then lease back the equipment from the U.S. firm. Comdisco will charge a leasing fee to NEC and after the contract expires in four years, the leasing company would likely sell the equipment to other chipmakers, the paper reported. Leasing the equipment will also enable NEC to invest more in developing system chips for communications equipment and other value-added products. The global chipmaking equipment market is valued at more than 3 trillion yen, with slightly over 10 percent of the total coming from leasing. The lease market will likely grow to 1 trillion yen in 2005, according to the paper. Shares in NEC in Tokyo slipped 10 yen, or 0.4 percent, to 2345 by midday. Trading volume was 1.5 million shares.