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: Steve Patterson who wrote (3093)	7/3/1998 5:44:00 PM
From: Robert Schling	Read Replies (3) \| Respond to of 3736

One more note on the earnings announcement: Did anybody else notice that inventories increased from last quarter to this quarter? That's a nice way to prop up earnings, because you push fixed costs into your inventory. At the current run rate (remember that most Q4 revenues were service related), this inventory should last for months. Can't drive inventories up forever, though. I particularly disliked the following "wishy-washy" statement in the announcement: "In addition, one-time charges were taken for special customer service allowances, which relate to the increasing complexity of the Company's CMP products and the current competitive environment, plus other miscellaneous one-time costs". Properly decoded this should read: We have technical problems with our machines, and customers are renegotiating pricing because of AMAT's attractive proposals... Something is going on here, and I don't like it. Maybe I'm paranoid. Any other opinions? Robert