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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (28800)	2/23/2006 11:34:00 AM
From: sixty2nds	Respond to of 95737

10:40 KLAC KLA-Tencor acquisition likely increases the value for the remaining tgts such as NANO, FEIC, RTEC, etc - Needham (52.26 +0.41) -Update- Needham notes that KLAC and and ADEX jointly announced the definitive agreement for KLAC to acquire ADEX in a stock-for-stock transaction, and they believe there is a very high likelihood that the deal will go through as there is relatively little overlap in current offerings to have H.S.R. problems. They say AMAT may be the only other likely candidate, that could come in, but has not shown an appetite for this type of acquisition and it is relatively far off their track. Firm believes this likely increases the value for the remaining targets such as Nanometrics (NANO), FEI Corp (FEIC), Rudolph Technology (RTEC) etc.

To: sixty2nds who wrote (28800)	2/23/2006 2:07:30 PM
From: etchmeister	Read Replies (1) \| Respond to of 95737

given that ADEX's gross margin structure is below KLAC's. They say this is a market where KLAC currently has a much smaller presence, comparatively versus its dominant exposure in the semiconductor manufacturing marketplace. One would have to compare ADEX margins with KLAC's segment (where KLAC currently has a much smaller presence, comparatively versus its dominant exposure) that competes with ADEX; KLAC covers so many different segments and they consequently have different margins depending on segment. Overall ADEX aquisition could help increase KLAC (average) margin.