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

To: TideGlider who wrote (13469)	1/29/1998 7:15:00 PM
From: John Fedak	Read Replies (1) \| Respond to of 25960

cc continued: looking forward... asia "not to be taken lightly" slowdown in eqip industury, not as much in areas such as DUV anticipate 10-15% Q1 rev reduction 98 programs: aggressive R&D & infrastructure expansion 'not going to trade future for short term benefits' Raise the bar more in a single step than at any time in Cymer's history. New 5010 model in Q2 New Orion in Q3 Further widen gap between Cymer & competitors 10-15c/sh shortfall due to r&d + asia DPV litho 28% growth through 2000 issues: DUV litho adoption, 300mm pushout, .18 micron mfg capacity Only mfg with global support structure Most advanced laser roadmap

To: TideGlider who wrote (13469)	1/29/1998 8:03:00 PM
From: John Fedak	Read Replies (3) \| Respond to of 25960

Here's the last of it folks. Sorry about the spelling/transcription errors. Very bullish longterm, IMHO. Just need to get through the next few monthsr... -fedak ____________________________ cc Q&A: -Margin effects of movement to multiple product company.. Spares/Service revenue. Q497 9% of rev YTD 8% 1998 could double up to 15% Visibiliy "very hazy" due to asia positive impact on margins -ArF laser usage? KrF for .18 & .15 ArF for .13 -Stepper slowdown. I-line vs. DPV All steppers hit, but DPV hit less than Iline DPV 50% of all steppers by 1998 -Slowdown breakdown by customer? not the same across the board. Overall trend downward with one exception. No cancellation of KrF tools, only pushouts. -Any competetive lasers in production? None that Cymer has seen. Competators lasers for evaluation only. Cymer only production laser. -How many DPV steppers installed in Q4 82-83 -Installs in Q1 pass laser shipments? equal (guess) -Q4 pushouts? No (technical question/answer about 5010/Orion capabilities) -R&D revenue in Q4? 423K -Q4 started w/ bookings, how about upcoming quarter. no comment. low visibility. -Regional split/customer split Nikon 39% Canon 25% ASM 24% SVG 6% (%'s rev for year) -Chipmakers having easier time in DPV implementation? very much so. Subsequent lasers by same customer have much faster ramp up time. -talk about time for stepper company to integrate laser. depend on customer. 17-20 weeks to 5-6 months. expect all customers to get better. integration time for new tools will (or course) be greater. -discuss infrastructure build 176 people in support international (very significant rampup in 1997) 17 locations around the world new products will increase support/training requirements -Cymer DPV in production at NEC, Mitibishi, Toshiba, IBM/Toshiba, IBM US -BTB above parity? No -No changes in patent litigation -F2 laser? No concerted effort at this point in time. Waiting for better feel that a F2 steper is even possible. -Q1 forcast: Slowdown vs. Decreased OEM inventory. very difficult to tell. Both will be occuring. Working closely w/ customers. Inventory at end of 97 high but not excessive. Inventory/Demand imbalance due to Asia possible. Repeat no Cancellation of DPV lasers (customers don't want to have to get back in the 18 month lead time line) -Pricing concessions pushed for from stepper suppliers? quoted industry report. Expect stepper proces to rise. -Any directional change in orders? Only 1 product, so not really a valid question. Customers will soon need to choose between the 5000 and the 5010. -Pricing. inc lasers did not inc revenue. Lasers getting cheaper? Currency fluctuations caused the discrepancy. -Bond buyback vs. Stock Looked at it but decided against. Took discussion offline. -Asian uncertainty clarification? Rev decline bottoming in Q1? Forcast for Q1 only, no forcast for sequential decline at this time. -New products. What benefits for customer? (long technical answer) -Litho customers, when will Korean rev shipments resume? All tool suppliers involved in discussions w/ Korea re: credit. Korean shipments havenot stopped, but terms and conditions of shipments changing. -Revenue mix for 98? hard to quantify. Scanner % shipment increasing. Economic conditions should accelerate push to advanced litho. Should hit in 2nd half of 98.