Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Silicon Valley Group -- Ignore unavailable to you. Want to Upgrade?

To: Juniper who wrote (1619)	4/22/1998 9:59:00 AM
From: Ian@SI	Respond to of 2946

Lehman's notes from the conference call (I much preferred David's synopsis). * Silicon Valley Grp. reported 2Q98 EPS of $0.29. We are cutting estimates for 3Q98, 4Q98 and 1Q99 to a loss of $0.25, a loss of $0.17, and earnings of $0.12 per share, respectively. We expect revenues to decline 35% in 2H98, vs. 1H98. * Given its relatively high exposure to U.S. customers, Silicon Valley Group has been affected severely by the capital spending cuts of U.S. chip manufacturers that have occurred in the last several weeks. * All three of the company's businesses were impacted by order pushouts, and one cancellation occurred. Mgmt. has begun implementing cost cutting measures, which should trim SG&A expenses and R&D spending by 10% in 2H98 versus 1H98. * While there are some preliminary indications of improvement in the order outlook for the photolithography business in 2H98, management believes that the current downturn for the industry overall could extend beyond 2 quarters. * Silicon Valley Group is preparing for the next upturn by ramping capacity of its photolithography division and building inventory of Micrascans. Cycle times, however, are still 45-50 weeks. We remain neutral on the shares.