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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: acidman who wrote (18843)	7/30/1998 12:35:00 PM
From: beanman	Read Replies (1) \| Respond to of 25960

I am primarily familiar with Lambda (coherent) as I have researched the company for over 5 years now. Information on their Excimer lasers is available on their web page. If you look at SVG's last SEC filing, you will see that they have qualified another laser source, this has to be Lambda. There is major incentive for the stepper manufacturers to make available other laser sources from a financial perspective. I don't know about Komatsu, but Lambda has been building Excimer lasers a heck of alot longer than Cymer has. Recent technology awards at CLEO illustrate their technological expertise. I don't expect Lambda to immediately grab large amounts of market share, but I don't think that it is unreasonable that Cymer's share could drop to as low as 50% over the next 5 years. I think there is room for three players going forward. I have not taken the time to run through Cymer's income statement to model out the potential effects of a decline in market share, but with revenues of $6 per share a 20% net margin only gives $1.20 in earnings. Margins such as this attract either new competition, or price competition from current participates. Coherent would salivate over margins like this. Especially since their cost of capital is just north of 10%. beanman