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

To: Yakov Lurye who wrote (11845)	12/23/1997 12:37:00 AM
From: Cymeed	Read Replies (1) \| Respond to of 25960

Yakov, your $2.5 ~ $3 million is in the right range. I estimated based on $3,000/month per employee for salary (low in CA?), with 1.6 times to cover taxes and overhead. Each one more employee would cost about $20,000/Quarter. 125 x $ $20m = $2.5 mm. However, this does not include recruiting fees, additional travel and relocating expenses, training expenses, expenses to provide each employee with furniture, equipment, and tools (such as computer). I don't have an idea about the magnitude of this kind of cost. I would guess the cost due to increased employees are less than $6 million, but more than $3 million for sure. One more thing we have to figure into the cost estimate is the increased maintenance and depreciation for the equipment increased during the last few quarters. They spent $15 million in capital last Q alone. All of these will show up as depreciation. I also expect more maint. cost associated with these new equipment. Over all, I am guessing a 12% ~ 15% after tax margin, with sales number higher than last Q. I have no idea about an exact nnumber. I agree with you that increasing staff numbers is a very bullish sign about their future prosperity. I can see Akins and his team got their hands full at the moment to take care of all these new employees, growth, customer relationships, .... No wonder they did such a terrible job in Japan semicon and other PR. We shall see soon.