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To: abcde_98 who wrote (1531)	3/20/1998 12:04:00 AM
From: FJB	Respond to of 2946

Thanks for tackling these issues. 1. They did not mention a 25% revenue decline in Q2. They said earnings would be 25% less. 15 Micrascans shipping in Q2 is equal to the number shipped last Q, so this can't account for a 25% decline in revenues for next Q(which is not the case anyway). The decline in earnings is most likely attributable to increased fixed costs/R&D and weakness in other divisions. I believe you that they had planned to ship more Micrascans according to your source. 2. I am well aware of 0.18 work, because of info Intel has been dishing out in public concerning Merced and the timetable for the product. 3. Widely reported, but thank you for bringing it to this thread's attention. Sincerely. 4. Interesting, I was not aware of Stern. Will check it out. 5. I must disagree with the "smart cookie" concerning ASML's diverisification. Check out their product line: asml.com RE: your last two paragraphs Thanks. I learned something. Lastly. I apologize for my rudeness! It's been a hard day, month, life... <G> I realized too late I was a jerk. Bob

To: abcde_98 who wrote (1531)	3/20/1998 11:32:00 AM
From: David Aegis	Read Replies (1) \| Respond to of 2946

abc, Bob and all--I am all in favor of open dialogue. The SVG preannouncement does not jive with recent news (for example Intel's push to .25 and .18 micron processes or IBM's announcement that it would act as a .25 micron foundry for IDTI's pentium clone). If we work together, hopefully we can arrive at the truth ahead of the broader market. I would love to see SVG adopt some sort of EVA employee incentive system. EVA matches bonus payments to specific performance metrics (for example reducing cycle times on Micrascan production) that are in direct control of employees. Every other company that I have invested in that has adopted EVA or an EVA-like system has had above-average gains in operating results and stock market returns. abc--what sort of incentives are provided to your contact at the Lithography division? I have heard from other divisions that employees get profit sharing. However, since profit sharing is not tied to activities (performance "metrics") directly controllable by the employees, it is nowhere near as successful at creating value as an EVA-based system. --David