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To: Trader X who wrote (10964)	1/29/1998 3:22:00 PM
From: Gene Veinotte	Read Replies (1) \| Respond to of 17305

Software: Learning to talk with genes TUESDAY DECEMBER 23 1997 -------------------------------------------------------------------------------- Mark Ward on an inspired approach to writing and running software -------------------------------------------------------------------------------- A 60-year-old thought experiment has inspired a novel approach to writing and running software that could one day make operating systems and memory intensive applications obsolete. In 1935 Cambridge undergraduate Alan Turing - the mathematical genius who later helped to crack the German Enigma code - came up with the idea for a universal computer that could perform the functions of any other, more specialised, computer. This device worked by scanning a tape fed into it and reacting on the basis of the symbols printed on the tape. Mr Turing never intended the machine to be built, but worked on it because he was interested in what problems were and were not computable. Now Bernard Hodson of Genetix Software in Ottawa, Canada has taken Mr Turing's ideas and used them to inspire an approach to software writing that could lead to smaller, more robust computer programs and faster application development. Existing computer programs act like arrogant snobs - they do nearly everything their own way, rarely sharing computer code even if they are doing the same thing (such as displaying text on screen) as another program. Some Microsoft and Apple Macintosh programs do call on the same bit of computer code for some functions, on PCs and Macs respectively, but only for a fraction of what they are capable of carrying out. In contrast, Genetix software programs share everything. Unlike Mr Turing's theoretical machine their instructions are not written on a tape, they are contained in what Mr Hodson has dubbed "genes." The most basic genes are written in machine code and when they are called on to perform they talk directly to the processor in the computer. This saves space and removes the need for an operating system. Higher functions are built out of lower level genes. Creating an application is relatively straightforward. The genes that already exist can be used for most of the functions, but some new ones may have to be written for any functions unique to a particular application. "We take an application and see what genes it needs," says Mr Hodson, "Then we build the genes if there is something that we have not previously written." He says this is one of the main advantages of his approach: the more programs written using Genetix software the bigger the pool of genes and the fewer new genes are needed to emulate other programs. One thing Genetix software does share with Mr Turing's machine is a single reading head that works out what to do. This tiny program calls up the genes from a common pool that do what the user of the program wants to. Using this approach Mr Hodson believes it would be possible to do many things larger programs such as Microsoft Word do, but in far less memory, possibly only a few hundred kilobytes. For the moment though, Mr Hodson is concentrating on more specialist applications. He is working on using the Genetix approach to make the processors on smart cards more powerful and to send video down telephone lines. Next year he hopes to produce a version of Genetix that can run programs written in Sun's Java computer language. He is also planning a European conference next year to present the latest work. Robin Bloor, a UK-based computer consultant, says he is impressed so far by what he has seen of Mr Hodson's work. He believes the Genetix approach will find its first uses in smart cards, embedded processors and for programs currently being written in Java. Mr Hodson, a retired computer professional, says he has been thinking about the ideas for the Genetix software for years, but only now does he have the spare time to develop them. Although he started later than Mr Turing his legacy could be just as long-lasting. Mark Ward is technology correspondent of New Scientist. -------------------------------------------------------------------------------- For other articles on this subject, try Site Search and The Archive -------------------------------------------------------------------------------- c Copyright the Financial Times Limited 1998 "FT" and "Financial Times" are trademarks of The Financial Times Limited.

To: Trader X who wrote (10964)	1/29/1998 5:46:00 PM
From: Andrew Vance	Read Replies (2) \| Respond to of 17305

AV -- As I am listening to the CYMI Quarterly Conference Call now, I am replying to this message. The Quarterly numbers were outstanding and the call is very upbest. They own the market, they see some softness in the upcoming quarter but they are alreadt way ahead of their expectations. Admittedly visibility is hazy for the immediate future, but there are a great deal things to be proud of. They authorized an aggressive stock repurchase program. They expect to make up some of the revenue issues with service and spares for existing systems, and they are right on schedule with all their advanced development of lasers for their customer needs. They are taking the INTC approach to moving ahead even within these uncertain times in order to distance themselves from their competitors. They have more than enough capacity to ramp up for customer needs should a quick change of fortunes occur. They did say they are preparing for a 10-15% reduction in base laser revenues for new steppers. Deep UV steppers will not be affected as much this year as the i-line systems. What is very interesting is that they believe the delay to 300mm may not impact them too much. They posed the view that companies may actually convert to advanced technology (0.25u or below) requiring DUV steppers at the existing wafer sizes and not wait for the 300mm conversions or new fabs. This is a very significant point since I have mentioned previously that we have many factors occurring at the same time: technology, new wafer size, AND new equipment platforms for the new wafer sizes. My opinion is the same as CYMI's, if 300mm is pushed out and the equipment deliveries of the new platforms of 300mm tools are likwise pushed out, the technology advances will still proceed. It may actually be easier to deal with the new technology learning curve first, then worry about the 300mm down the road. No cancellation of KrF lasers have occurred to date. A few pushouts but no cancellations. No pushouts occurred last quarter. Customer breakout for 1997 was Nikon (39%), Canon (25%) ASMLF(24%) SVGI (6%). Customers are moving down the learning curve in DUV much faster now than at the initial implementation. Faster ramp up times are occurring within this area. Lead times for newer tools from CYMI are getting shorter and shorter to integrate with the actual steppers. There will be two new product introductions (5500 and Orion) this year to advance the capabilities of the system. They are expected to garner much higher ASPs and margins because of the functionality it will provide. Customer support group has grown dramatically. Have doubled the number of offices to support the installed base. Customer service is going to be a nice profit center for the company. Need to still increase this infrastructure since more and more systems will be proliferating through to the market in 1998. Most of the Japanese companies are in full production along with the IBM Manassas plant in the USA. No new developments in the Komatsu patent litigation. Backlog $109 million Captial Spend $12 million 809 employees Depreciation for QTR was 2.7 million BTW-SVGI is definitely the far and away #4 DUV stepper provider. Andrew PART 2 Stuff from the Q&A session: 1. No cancellations because no one wants to be sent to the back of the line for these lasers. Even the pushouts are very difficult to get. 2. $50 million stock repurchase would retire 11% of the common stock but if the same money is applied to the convertible bonds, they could retire close to 40% of that bond debt. Question was why they do not go after the convertible bond since it now sells for a premium. Question was asked to be taken offline so no answer given. 3. Both Nikon and ASMLF have both decided (as of Dec 1997) that the market could bear an increase in the proce of the DUV steppers. Why??? Because of the benefits and capababilities of these systems, they feel the IC manufacturers can bear the price increase. At least they are being honest about supply/demand economics. The customers will have to pay through the nose to get the benefits of DUV. This means we will see a nice pop in earnings from the steppers guys. 4. The above was a response to the question asked relative to pricing pressures CYMI might be experiencing from their customers. Their responses was that they were getting involved in interesting discussions relative to price concessions but discussions tailor off when they mention the Dec 1997 comments summarized in #3 above<GGG> Bottom line: CYMI is a great mid to long term buy at 80% market share. Andrew