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 : Electro Scientific??? -- Ignore unavailable to you. Want to Upgrade?

To: vinh pham who wrote (452)	9/18/1998 9:38:00 AM
From: Mark Oliver	Read Replies (1) \| Respond to of 723

It's a recording. Dial the number and it will ask for a code. The call will be replayed. I still haven't had time to listen. I'm not sure they can say much to make things seem good. Joel, glad you made a good call. I was clouded by own expectations. I still will wait it out. Why not? I'll have to sit dead money here for a while, but i supect I'll get it all back and more someday. Regards, Mark

To: vinh pham who wrote (452)	9/20/1998 1:24:00 PM
From: Mark Oliver	Respond to of 723

Notes from the ESI Q1 Conference Call 9/18 For the replay, 800 475 6701 code 403984 Sales Mix this quarter versus last quarter. Memory Yield Improvement 33% Vs 22% Advanced Electronic Packaging 26% Vs 28% Electronic Component Manufacturing Equip. 17% Vs 25% Circuit Fine Tuning 15% Vs 16% Vision 9% Vs 9% Area mix US 40% Vs 42% Asia xJapan 39% up from 30% Japan 14% Vs 14% Europe 7% Vs 14% Reduced employee head count from 978 to 824 through reduction of temporary and part time employees. All charges taken this quarter. Q2 will see a reduction of 1 million in expenses. 40% of staff cuts come from manufacturing. Some also come from suspension of 300mm development (not stopped, but pushed out). More staff cuts in the future? "Yes if needed, but it's hard to let people go when times are hard". Receivables grew this quarter. Targeting DSO in 70 range, but actually 15 days higher. They have extended payment dates to make sales. All sales are secured. Quality of Receivables is GOOD. Allowed 3 to 6 months extensions. No losses have been recorded for bad debt. All situations mentioned in the last CC are paid. Memory yield is shipping systems for device shrinks below .18. Taiwan #1, started buying for advance DRAM. Positioning for 64M cycle. Sales to Taiwan had dropped out 6 months ago, but sales returning. Korea continues to buy. Vision is close to solidifying new agreement with K&S. Drilling sales +50% laser. High end demand is strong in Asia. China is starting to see the advantage of laser drilling as it's the only way to get some finer work. ESI also at the high end of mechanical. They think they can take market share. Dynamotion move to Portland complete. Bringing ESI talent into the Dynamotion mix which has shown some good synergy. Seeing some improvement in costs, but yen continues to go against them. Taiwan is still buying mechanical drills. Early stages of laser. Stable buying over the last couple quarters. Advanced Electronic packaging in a good trend. High end customers are buying. But, costs of cutting work force hurt this quarter. A lot of savings will be in place for next quarter. Capacitor business. Customers having big pricing problems. New capacitors must be production proven. Customers must feel like then can make money investing in new equipment. Conditions difficult. Japan is now a high cost manufacturer. Vision inspection of capacitors, normally done buy people. Low cost wages have slowed move to mechanization. Example, at a recent company visit, they put 10,000 human inspected pieces through their machine and found 600 bad parts. « dozen systems out there on trial. Interesting new product development. Trend to miniaturization should be in their favor. Gross margins going forward. Pressure on circuit fine tuning and memory ASP's. Capacitor business is down substantially, but includes a certain amount of consumables which carry good margins. Targeting GM's mid 50's. New distribution agreement in Japan will help lower costs going forward. GM's were down a point this quarter. Operating margins 3.2. New product discussed, but not detailed. Something to do with Compiled memory? I really didn't understand. More details needed. In general, ESI has a lot of high end equipment that enable new products going forward, but they don't believe they can demand highest ASP because customers are having a hard time. They must accommodate customers now in hard times to maintain good relations going forward. Forecast. Don't count on things getting better. Working toward making money at reduced levels. If a turn comes, they will benefit. Memory business is stronger than expected. I've tried not to inject personal opinion. My notes and memory could be flawed. Please add any points you think I've missed. Regards, Mark