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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (3574)	5/6/2005 1:06:48 PM
From: Sam Citron	Read Replies (1) \| Respond to of 3813

NVLS's gross margins are about the same as LRCX and AMAT, but R & D and SGA have driven operating margins much lower. That seems to be borne out by the statistics you cite indicating AMAT has been devoting significantly smaller % of sales to R&D. You suggest that you believe the margin pressure is due to NVLS aggressive new product development. Temporary? Value Line states: [NVLS] Management attributed the margin squeeze to a significant geographical customer mix shift in equipment orders for new, versus existing, 300 millimeter fabs. Why the dissonance? Sam