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 : Speedfam [SFAM] Lovers Unite ! -- Ignore unavailable to you. Want to Upgrade?

To: Rob-Chemist who wrote (3050)	5/28/1998 7:02:00 PM
From: My Father's Son	Read Replies (1) \| Respond to of 3736

To All, It should be interesting to see if there is an announcement regarding Hill remaining on SFAM's board. Seems like a conflict of interest, or could he remain on the board as something else is in the works. Just thinking out loud... DMM

To: Rob-Chemist who wrote (3050)	5/28/1998 8:45:00 PM
From: JZGalt	Respond to of 3736

I am not sure where this leaves SFAM The music just stopped and SFAM is left standing. Damn!

To: Rob-Chemist who wrote (3050)	5/29/1998 1:42:00 AM
From: SemiBull	Read Replies (2) \| Respond to of 3736

<<What are your thoughts on the IPEC/NVLS announcement? The most curious aspect of the announcement, at least to me, is that LRCX and IPEC already have a collaborative agreement for integrating the OnTrak cleaning tool into some IPEC tool, and NVLS and LRCX recently announced a collaborative agreement for deposition/etch/CMP. It almost sounds as if these 3 companies are planning to get together in some way, shape or form. I am not sure where this leaves SFAM, although the NVLS announcement suggested that they may be developing these sorts of agreements with other companies in the near future.>> Spoke to IR this afternoon. Hill sought approval from Farley prior to entering into negotiations with either party with Farley. IR believes there is no conflict of interest. IR would not (and cannot) respond to whether a similar agreement might be reached between SFAM and NVLS at some later date - had to ask anyway, given the language in the PR re working with "others." IR does believe there is a disconnect on the Street (and maybe on the web) with what NVLS is doing per the agreement. They do not perceive this as a threat, and believe when copper takes off, they will be a player - contra to some suggestions on the SI, their tool has performed very well in head to heads. IR is aware of some of their weaknesses too - always good to know they're not arrogant. Regarding Intel business, it appears b/c of capacity constraints, the timing of their expansion and the completion of their Auriga-C, they could not in good faith bid on the Intel 0.18 business. My impression from my conversation with IR (this is only what I heard between the words, so to speak :~)) was that they were invited to compete (I heard in between the words offered business but that was not expressed) and would have likely won a chunk of business. Their next entre into Intel will come at the 300mm upgrade. IR was not familiar with dates, though they expected that to not arrive until '99 at the very earliest (more likely '00). The impression I got was they will be in the game during the next go round (while some players will not be), or if there should be an opening b/c of capacity or poor performance. IR strongly rebutted some of the comments made regarding the inferiority of their tool and AMAT's growing marketshare. IR's perspective is the same as that I have posted earlier on this thread regarding AMAT's business tactics. Having said that, capacity isn't an issue for AMAT b/c of their smaller customer base, and as such, they were able to win half the Intel 0.18 business, with the remainder going to the incumbent, IPEC. Other points. IR feels that the recent wins regarding Samsung and Lucent are exemplary of Auriga-C's strengths. Financing issues regarding Samsung are slowly working their way out, so we should see something reflected in SFAM's bottom line over next couple of quarters once the Korean Gov't, Samsung and the IMF work the outstanding issues out. IR also thinks the semi rebound will be based on Cu and not on migration to 300mm because of timing. That said, IR was of the impression we could see a rebound anywhere from November of this year to June of next year. IR's position is that they will not blame their performance on SEA, unlike their competitors, b/c it isn't really true for any player in reality. There is a slowdown domestically, and that has impacted everyone regardless of whatever growth was estimated arising from SEA. While I unravel the remainder of my conversation, a couple of other comments. IR wanted me to understand that a CMP tool dedicated to Cu doesn't require a redesign, but rather a different slurry mix and head. IR suggested that there is a disconnect between "those supposedly in the know on the Street and the realities of the marketplace" regarding this issue. With this crosspatching of Q&As, IR said AMAT's tool just has to work for them to compete, and as such, AMAT is SFAM's biggest concern. But IR feels that they can survive and grow during this downturn and will perform well once the rebound hits. Finally, I asked the questions which I of course knew I could not get answers to. These included whether they had any plans to sell out to anyone or buy anything, and whether and teaming deals were in the works. As you might expect, IR replied "no comment." Personally, I came away much more positive than when I placed the call. I understand a great deal more of SFAM's strategy, and for the sake of brevity, and to facilitate some sleep, I have left some things off this posting. When time permits I will post some of the nuggets (not as juicy as those above). I encourage all shareholders or potential shareholders, to call IR at (602) 705-2100 and ask for Karen Silva or Addo Barrows. I have found them both quite knowledgeable techically, candid, honest and forthright without the puff. Excuse the hodgepodge posting, but at this hour, I'm lucky I'm not completely "toast"...SemiBull