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

To: Nevin S. who wrote (24987)	6/22/2000 9:57:00 PM
From: FJB	Respond to of 25960

Cymer's ASP will go up, because their product mix is constantly improving and favors higher-end systems on an ongoing basis. Then you have the higher volumes and process improvements you write of and clearly, Cymer's margins will be excellent towards the end of the year. I think it is self-evident that their next largest competitor is losing focus, or the joint venture would not have been created. Lastly, I believe Jay D. more than Komatsu. I think Komatsu is scrambling and wants to end the financial drain that is their excimer laser business. Bob

To: Nevin S. who wrote (24987)	6/23/2000 9:49:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 25960

Nevin, Zeev and all, Thanks for your excellent comments on profit margins. I'm sure you're both right and Cymer is trying to keep prices down for strategic reasons. I don't find fault with this, they know their business better than I do, but I still can't help but wonder if another 5% in the price would matter that much? Would another 20 or 30 thousand dollars on a half million dollar laser send their customers scurrying into the arms of LP or Komatsu? We know the stepper manufacturers already keep these two around as a second source but give the majority of their business to Cymer. If Hodess is right and neither can make lasers in production quantity anyway, then why the worry? As I pointed out in my original post, the margins at some of the other equipment makers are considerably higher than Cymer's. I guess I'd just like to see Cymer get the respect that I think they deserve. What's the fun of being a monopolist if you don't have monopoly pricing power? -Robert