SI
SI
discoversearch

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 : Mattson Technology -- Ignore unavailable to you. Want to Upgrade?


To: Q. who wrote (843)7/24/1998 8:40:00 AM
From: John Stewart  Respond to of 3661
 
John;

I expect the additional 550,000 shares will be paid based on future
growth of sales in EPI. Other deals I've seen like this had additional payments based on future sales growth. The key to sales at Concept is the total number of installed units (400) x whatever they sell for (I'd heard that EPI systems sell for $1.5M, but this must be too high), divided by something to get a yearly rate. So If I take a wild guess of:

400 X $0.5MM/ (1998-1989) = $22M/year

Still think it must be too high & would invite anyone to correct me. In any case, I think they got a real bargain at 1.2M shares X $5 or $6M. If my math is right, the current market size for batch EPI is about $80M, then they would have about 1/4 of the market.

What I did not understand was the Mattson development in EPI, which was being combined with the Concept work. I this targeted for the rest (non-batch) segment of the market? I sent an EMail to Mattson last night with that question - let know if I hear anything.

Sorry for my 1 significant digit math. I know for folks with a physics background like yourself this is out of line, by for engineer's like myself, it does the job sometimes ;')

Take Care,
John Stewart