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To: David Aegis who wrote (1612)	4/21/1998 2:37:00 PM
From: David Aegis	Read Replies (1) \| Respond to of 2946

Deprec. and Amortiz. update: The $9.5 million of D&A for the quarter discussed on the conference call was the total dollar amount for the quarter, not an incremental change versus the previous quarter or prior year. The D&A expense in the December quarter was $8.4 million, and it was $5.3 million in the March quarter of 1997. On a y-o-y basis, this equates to an impact of about $0.10 per share that has resulted from the incremental investment (primarily in the Litho division). Adding this to the $0.10 of increased R&D, and I conclude that the $0.29 reported for the quarter was pretty darn good. Now we wait for the next upturn, when the R&D and cap ex investments will (hopefully) have a pay-off in terms of large increases in EPS. --David

To: David Aegis who wrote (1612)	4/21/1998 3:09:00 PM
From: Kevin Firth	Read Replies (1) \| Respond to of 2946

Thanks for posting your notes. Any indication from management about which quarter the industry upturn will occur? Did they specifically state the Micrascan production rate? In the Oct 97 conference call, they said they had 35 test bays and planned to have 50 by the 2nd half of 1998. According to today's call, they have 37 bays now. Doesn't seem much of an improvement going from 35 to 37 bays unless cycle times are way down. Kevin

To: David Aegis who wrote (1612)	4/21/1998 8:08:00 PM
From: Artslaw	Read Replies (2) \| Respond to of 2946

Dave, Thanks for the conference call notes. How did you reach such a rosey conclusion, though? B2B of 0.69, excess capacity, pricing pressures, and expected Q3 loss. These are terrible (the other seven points were neutral at best, unless they are pulling in major margin from the track and thermco divisions). They also missed their numbers by a couple cents. Why do you feel so good about SVGI (or, so much better than any other semi cap company)? These results would indicate to me that I might be better off putting my money elsewhere, no? Thanks for any input, Steve