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

To: Mani1 who wrote (24814)	4/27/2000 1:33:00 AM
From: Mani1	Read Replies (1) \| Respond to of 25960

This some what explain what people are thinking as they sell CYMI in the 30's cnetinvestor.com Cymer Shares Fall 20% as Sales Miss Some Targets (Update2) 4/26/00 1:16:00 PM Source: Bloomberg News San Diego, April 26 (Bloomberg) -- Cymer Inc. shares fell 20 percent after the biggest supplier of lasers used to make semiconductors reported first-quarter revenue that missed some forecasts, prompting concern that competition is increasing. Cymer fell 9 1/2 to 37 1/2 in trading of 2.4 million shares, triple its three-month daily average. The stock has risen 88 percent in the last year. Sales doubled during the quarter to $80.6 million from $40.1 million a year ago, Cymer said after trading closed yesterday. Still, that missed some forecasts of $86 million, Merrill Lynch & Co. analyst Mark FitzGerald said. Orders, a harbinger of future sales, also fell from the fourth quarter. ''We think it's getting more competitive out there,'' said FitzGerald, who rates the stock an ''accumulate.'' Lower expenses and higher gross margins helped Cymer top earnings expectations. Net income was $10.2 million, or 33 cents a share, compared with a loss of $2.3 million, or 8 cents, a year ago. That beat the 29-cent average estimate of eight analysts polled by First Call/Thomson Financial. ''Our product mix continues to shift to newer, value-added products, and we're improving our cost management,'' President and Chief Executive Bob Akins said yesterday on a conference call with analysts. Cymer's excimer lasers produce light at precise wavelengths and transfer chip designs onto silicon wafers. As chipmakers such as Intel Corp. continue to shrink the size of circuits on semiconductors, they need newer lasers capable of producing higher- resolution images. San Diego-based Cymer reiterated forecasts that it will increase revenue 50 percent to 60 percent this year over last. Orders The company had a book-to-bill ratio during the quarter of 1.12, meaning it booked $112 in orders for every $100 shipped. A ratio above 1 indicates a growing market. Though that ratio is lower than those reported at other chip- equipment companies, Cymer said it more tightly controls its ratio than its peers. The company also reduced its delivery time to four months from six months during the previous quarter, Akins said on the call. That put first-quarter orders at about $89 million, down from $97 million in the previous quarter, analysts said. Falling orders are unusual in the current boom market for semiconductor equipment. That could be a sign that Cymer's lead in the laser industry is being cut. Some estimates put the company's market share as high as 94 percent, and FitzGerald expects Cymer will lose business this year because its tools cost 20 percent to 30 percent more than those from competitors such as Japan's Komatsu Ltd. ''Things are very strong, but they are going to give up market share,'' FitzGerald said.