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Technology Stocks : LTX Corp. (LTXX) -- Ignore unavailable to you. Want to Upgrade?

To: David S. who wrote (1241)	5/20/1998 12:07:00 PM
From: Yakov Lurye	Read Replies (1) \| Respond to of 2126

Couple of immediate questions: 1) I can't understand the way they treat the ANDO deal : - Sales were $54,130,000 including $7,400,000 of revenue from the Ando transaction discussed below ... and few lines later: - In exchange for the right to market, sell and manufacture Fusion in Japan, Ando paid LTX $10 million and returned to LTX 1,600,000 shares of LTX Common Stock which it had previously purchased. 2)Where are their 6 FUSION customers located - hope they are not in Japan? 3) Any ideas about the revenue breakdown by region? If I recall correctly, they used to rely heavily on sales in Japan. If this is the case, ANDO deal may actually hurt the revenues outlook going forward. My immediate impressions FWIW: All ATE companies had problems last Q. Unfortunately, for a company like LTXX a small drop in revenues results in a disproportionately big drop in EPS. In itself, a quarter like this is not a disaster - provided the semis will recover soon enough. For now though, semi-equip BTB continues to fall, and it is likely that LTXX Q4 is going to be even tougher than Q3. To this extent, I am not so sure we'd hit the bottom. I doubt funds will get interested in LTXX until the industry BTB (preferably for back-end) shows some signs of improvement. Regards, Y.