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

To: Zeev Hed who wrote (20374)	12/10/1998 11:29:00 AM
From: orkrious	Read Replies (2) \| Respond to of 25960

Zeev, a couple of points. 1000 lasers a year is $500MM annually now. ASP is projected to grow to $850k by 2003. Then don't forget servicing the installed base. I don't have my spreadsheet with me, but by 2003 this will be at least 2000 lasers. Bob Grutza indicates that the service/spare revenue from installed lasers is presently $100-150k per laser. I'm sure this will grow too, perhaps to $200-250/laser. Then don't forget Cymer's lasers have very high margins. In June 97, the after-tax margin was 15%. With economies of scale, this should also grow. Also, back then there was little service/spare revenue because most lasers will still under warranty. Akins has said that service/spares carry far higher margins than lasers. This all portends much better than expected results once the market recovers. Jay