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

To: Robert Douglas who wrote (24974)	6/20/2000 7:55:00 PM
From: FJB	Read Replies (3) \| Respond to of 25960

I did not see anything contradicting Jay's claims in that research note. It claimed Jay was biased and offered no evidence to support that statement. Here were the main points from Kawahara: 1) a joint venture between Komatsu and Ushio in lasers has caused confusion among Komatsu personnel 2) Komatsu would no longer continue its after-service business in lasers; and 3) Komatsu could lose further market share in lasers 4) lack of any type of commentary from the client side prevents us from arriving at any final judgement on the matter Jay's points: 1. We view Komatsu's excimer laser JV with Ushio as a stealth divestiture. 2. We also believe Komatsu is hamstringing the JV by withholding key management, technical, and field service human resources. 3. Very few top managers are going to the JV from Komatsu. 4. The top executive and others are being moved to new positions in other Komatsu businesses. 5. A number of scientists are also being reallocated to other Komatsu businesses. 6. Canon has already transitioned laser orders for two photolithography systems destined for Taiwan to Cymer from Komatsu since hearing about Komatsu's new field service plans. 7. Additionally, although Nikon prefers to be the point contact for laser repairs of its installed base, it usually calls in laser vendor service technicians for difficult problems. Komatsu's inability to fill that void will cause Nikon to allocate scarce human resources to a new area while it is struggling to ramp with the cycle. The easy way out will be to bias laser purchases to Cymer, which has ample capacity.