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

To: Gary Hoyer who wrote (12604)	1/14/1998 7:20:00 PM
From: Paul Dieterich	Respond to of 25960

AMD's situation reflects the huge pressure to upgrade to .25: Advanced Micro Down 11%; Analysts Say Tax Benefit Helped 4Q Dow Jones Newswires -- January 14, 1998 By Gaston F. Ceron NEW YORK (Dow Jones)--Shares of Advanced Micro Devices Inc. (AMD) were down 10.8% Wednesday, and analysts blamed the drop partially on tax benefits that may have understated the company's fourth-quarter losses. As reported, the Sunnyvale, Calif., chip maker posted a loss of $12.3 million, or 9 cents a share, for the fourth quarter, compared with a loss of $21.2 million, or 15 cents a share, during the year-ago period. Sales climbed to $613.2 million from $496.9 million in fourth-quarter 1996. A survey of 20 analysts polled by First Call Corp. had estimated Advanced Micro would post a loss of 14 cents a share for the latest quarter. But the company's losses would have been wider had it not been for higher-than-expected tax benefits, said Scott Randall, an analyst at SoundView Financial Group. Without these benefits, the company might have posted a loss of 17 cents a share, Randall said. "That's what the stock is reflecting ... that the quarter really wasn't better than expected," the analyst said. Another analyst who follows the company agreed with Randall's analysis, saying the benefit was greater than what most analysts had anticipated. Other issues putting pressure on the stock include concerns over the company's ramp-up of 0.25-micron chip production at its Fab 25 facility in Austin, Texas. While the strategy may prove to be what's needed in the fight with Intel Corp. (INTC) for the computer microprocessor market, analysts are worried over the near-term implications for Advanced Micro's earnings. "The real issue is (Advanced Micro's) guidance for the first quarter, the likely production disruptions resulting from its efforts to ramp up production," said Brown Brothers Harriman & Co. analyst William Milton. "When you're trying to force a process in an accelerated fashion, many things can go on." But despite near-term issues, Milton indicated Advanced Micro's strategy will help position the company against Intel in the longer term. Converting to 0.25-micron production will eventually help production yields, Milton said. "The company really has no choice if it wants to compete with Intel," he said. NYSE-listed Advanced Micro recently was down 2 1/4 to 18 5/8 on volume of 2 million, compared with average daily volume of 1.8 million. The shares closed Tuesday at 19 1/8, up 1 3/8, but rose after-hours following the release of the fourth-quarter results. An Advanced Micro Devices spokesman said the company's ramp-up of 0.25-micron chip production is "the most important thing we are doing at this point." The spokesman acknowledged the process may face problems at times, but added that "it's our job to solve those problems." As far as the tax benefit that some analysts claim understated the company's fourth-quarter loss, the spokesman said only, "the tax benefit was available and we employed it." -Gaston F. Ceron; 201-938-5174

To: Gary Hoyer who wrote (12604)	1/14/1998 7:29:00 PM
From: D. K. G.	Read Replies (1) \| Respond to of 25960

Gary,thread: Some interesting .pfd files at the Lehman Brother's Semiconductor site: lehman.com Items A firmer DRAM price - short term Companies in the forefront of 0.25uM developement should benefit in 98. ETEC and AMAT mentioned but not CYMI. ---- I heard Infrastructure's 98 outlook of the industry omits Cymer. Can a subscriber (circumspectly) help us out ? IMHO.....ramblings A noted absence mentioning this company. Scare the last weak hands out - pull the last of the uninformed shorts in ? Recent Stock $ looks like its being accumilated. Then we'll hear about how wonderful the company is. Amazing how the gumshoe collective resources of this thread are better able to piece together a picture of what's going on without the fee$ of whiteshoe investment houses. In the words' of the budlite guy "I love you guys, man!" Sorry Mr. Market your not getting my shares of Cymer for I have been to Rancho Bernardo and seen the light (DUV)! Contrary to what Mr. Market would have us think: there was no going out of business sale on the door, nor were there Komastu bulldozers plowing over Akins' and Angus' parking space. The Truth Is Out There. - D