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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Jim Devlin who wrote (1721)	1/19/1998 11:36:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 2754

Well, maybe this should help Fsii and the rest of this Sector. Look at Nvls's earnings out this morning and there's room for improvement. Novellus Systems 4Q Net 64c A Diluted Share Vs 51c Novellus Systems Inc. - San Jose, Calif. 4th Quar Dec. 31: 1997 1996 Sales $162,830,000 $104,607,000 Net income 22,390,000 16,878,000 Avg shrs (basic) 33,700,000 32,378,000 Avg shrs (diluted) 34,984,000 33,180,000 Shr earns (basic) Net income .66 .52 Shr earns (diluted) Net income .64 .51 - 'Basic' earnings per share is calculated by dividing net earnings applicable to common shares by common shares outstanding. This replaces 'primary' earnings per share, which included common stock equivalents in the calculation. The year ago per share amounts are restated to reflect the current presentation. ** - 'Diluted' earnings per share includes options, warrants and convertible securities in the calculation.o pt Year Dec. 31: 1997 1996 Sales $534,004,000 $461,736,000 Net income (95,658,000) 94,029,000 Avg shrs (basic) 33,257,000 32,156,000 Avg shrs (diluted) 33,257,000 33,018,000 Shr earns (basic) Net income (2.88) 2.92 Shr earns (diluted) Net income (2.88) 2.85 Figures in parentheses are losses. All figures for fourth quarter and year are adjusted for a 2-for-1 stock split paid Oct. 13, 1997. Novellus Systems Inc. (NVLS) took a pretax charge of $133.5 million in 1997 for the acquisition of Varian Associates Inc.'s PVD division; charges of $17.7 million to write off amount due from Submicron Technology Inc. and $84 million in charges for the settlement of the TEOS patent litigation. Excluding the charges, the company had net income of $75.3 million, or $2.17 a share. Novellus said backlog on Dec. 31, 1997, rose 43% to $224 million, from $156.4 million a year earlier. Novellus makes, markets and services automated wafer fabrication systems for the deposition of thin films. Powered by Quote Agentr and News Agentr from Gari Software/IDD Information Services

To: Jim Devlin who wrote (1721)	1/19/1998 2:32:00 PM
From: Running Bull	Read Replies (1) \| Respond to of 2754

I see no compelling future for Submicron. The only positive is that they are dealing with their disaster and have new management. But the trends in cleaning are toward newer and more efficient tool platforms like CFM offers for batch cleaning, or single wafer processing like FSI. But FSI's single wafer processes have never really caught on. Plus the Japanese are huge players in the cleaning business with competing wet bench technologies and have the lion's share of the asian market. Given the devaluation of the yen and the fact that the Japanese have come on shore to the US to compete with their wetbenches doesn't bode well for Submicron. The only cleaning companies to make progress in the US are Steag and CFM. This has come at the expense of FSII and others. Submicron does have an ozone cleaning process, but the tool footprint makes their offering less than attractive to me. Another way to think of all this is that Submicron sells sinks that you dunk your dishes in, FSII sells dish washers where the spray nozzels stay fixed and the dishes are spun, and CFM sells a vertical river that washes and drys the dishes with no water spots in the space of the FSII tool. Which would you buy?