Transcript of the CNBC interview with Mihir Parikh:
CNBC - SQUAWK BOX
ASYST TECHNOLOGIES CHAIRMAN & CEO MIHIR PARIKH
JANUARY 22, 1998
Mark: Third-quarter earnings are out from Asyst Technologies. The company which makes parts for semiconductor equipment makers, says it earned 41 cents a share in the third quarter. That's 2 cents above estimates and a 150% increase from the year-ago period. The company also reported record revenues and net sales of more than $42 million compared with $36 million last year. Shares of Asyst gained more than a point yesterday to close at 24 7/8. This is more than triple its low of 8 7/8 but far off its high of 47. But as you can see, this thing --- wow, that was some climb up to 45. Joining us from Palo Alto, California to talk about all this is Mihir Parikh Chairman and CEO at Asyst Technologies. Good morning, sir. Thanks for being with us.
Good morning, thank you for inviting me.
Mark: The growth has been substantial and the income is up more than the revenue which suggests you have got costs under control. Talk to me about the impact of the Asian business because of course wall street very sensitive to what it's doing to the high-tech businesses.
Yes, indeed. We are sensitive also and the Asian crisis, if you will, is a concern. Fortunately for Asyst, we are positioned with manufacturers the most cost-effective foundries as they are
called that manufacture at a rate productive, a very flexible manner, the most advance chips in the world --- installed at these throughout Asia, Taiwan, Singapore primarily. much less in Korea, and significantly less in Japan for now. So, for those reasons at least we appear to be relatively immune, if you will, but in the longer term actually we see a tremendous opportunity in Asia as the rest of Asian manufacturers adopt the mini environment or SMIF-based technology which is much more cost-effective than manufacturing technology.
Mark: I'm glad you mentioned that. For those who don't know it you -- your equipment is I think, the largest thing you make is about the size of a shower stall. It is -- it basically is stuff designed to keep the chips clean, right, while they're being made.
Well, that's one way to look at it. In fact instead of a shower stall let's think in terms of a refrigerator.
Mark: All right.
Imagine, if you will, you don't want to refrigerate your entire home to keep a carton of milk cold, you'd have a refrigerator. In a similar vain a large clean room is kept clean everywhere. We've invented
and developed a technology over the last decade that keeps cleanliness localized right around the wafer. Small sealed containers, interfaces, robotic interfaces, mini-environments that encapsulate the equipment. These combinations of products complete system provides a means
of keeping wafers much cleaner in a much more cost-effective way than in a conventional open clean room.
The question is, what is the penetration of that product into the semiconductor manufacturing industry now? How much are you there now and what's left for you?
Well, one way to look at it is kind of the penetration of refrigerators. In the same vain, it's taken 10 or 12 years to get the industry to get the industry to accept our mini environment technology. Now we see an enormous growth in penetration and, in fact, with new 12-inch wafers, 300 millimeter wafers, the industry has essentially through standards stipulated our kind of technology, potentially our products, as standard in the way to manufacture. Today, however, in the 200 millimeter world we are adopted by about 30 to 40% of factories, essentially 100% amongst
the low- cost productive manufacturers in Taiwan, Singapore that are these so-called foundries. We see a tremendous increase in the manufacturing of SMIF technology.
Mark: Helps not to have that much competition. Jenoptics is the only other company that does what you do?
Well, we always respect competitors. You know, competitors in Europe financed by the German government and by other, you know, local European means, are certainly not to be ignored. We do have a very large market share. We are proud of it but we have to work hard every single day consistently predictably to work to maintain and earn that with our customers and with our shareholders.
Mark: Okay, so getting back to the Asian situation you have no reason to tell us that the current Wall Street estimates on what you're going to earn should be downgraded because of Asia?
We are very much a culture that produces predictable consistent numbers. The numbers and the guidance that we are giving to Wall Street for the next few quarters is very much you know in line
with our internal goals and plans. As far as many years out, who knows?
Mark: okay. Thank you very much sir. Appreciate your sharing your thoughts with us.
Thank you very much for inviting me.
Mark: Mihir Parikh, Chairman and CEO at Asyst Technologies. |
