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

To: Yakov Lurye who wrote (14380)	2/7/1998 5:16:00 PM
From: TideGlider	Read Replies (1) \| Respond to of 25960

Yakov: I believe they stated a revenue reduction of 10 to 15 %. The numbers in the CC work out to what I posted. I will get the print for you. TG

To: Yakov Lurye who wrote (14380)	2/7/1998 5:21:00 PM
From: TideGlider	Read Replies (1) \| Respond to of 25960

Yakov: It is revenues as opposed to sales. >>>As a result, we anticipate a reduction in our revenues by 10 to 15 percent in the first quarter compared to fourth quarter levels.<<< TG

To: Yakov Lurye who wrote (14380)	2/7/1998 5:24:00 PM
From: TideGlider	Respond to of 25960

Yakov: >>>We currently expect that the investments needed to fund these critical future-oriented programs throughout the year, coupled with the anticipated revenue decline, will reduce our earnings by 10 to 15 cents per share in the first quarter of 1998. In the longer term, despite the near-term issues, deep-UV is ranked as one of the fastest-growing sectors in the global lithography marketplace.<<< TG

To: Yakov Lurye who wrote (14380)	2/7/1998 6:58:00 PM
From: NW Bronco Fan	Read Replies (1) \| Respond to of 25960

Yakov and TG, I put this out a couple days ago on the impact a 10-15% revenue reduction would have on earnings: <<If CYMI's revenue is down 10-15%, this would be a reduction of $5,900,000 to $8,850,000 in revenues, and at a 40% gross profit margin, this translates to between $2,360,000 and $3,540,000 in margin, which unfortunately filters all the way through to the bottom line. Divide these numbers by 30,000,000 shares and you get a quarterly reduction of 8 to 12 cents. Add on the additional expansion expenses they're going through and that's where they're coming up with the 10 to 15 cents in earnings reduction.>> This does also hold true that if they increase their revenues sequentially and by only small percentages, the earnings increase dramatically. They shouldn't have much trouble making and possibly shattering the new estimates if Asia starts to rebound in the 2nd half of the year.