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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (4242)	3/2/1999 1:04:00 PM
From: Link Lady	Read Replies (1) \| Respond to of 4697

Hi Zeev Could you explain what this news release means for WFR? news.com MEMC ANNOUNCES $1.9 MILLION CUMULATIVE ACCOUNTING REVISION; REV Business Wire March 2, 1999, 7:29 a.m. PT ision relates to change in functional currency of two non-consolidated joint ventures, as previously disclosed Business Editors ST. PETERS, MO--(BUSINESS WIRE)--March 2, 1999--MEMC Electronic Materials, Inc. (NYSE: WFR) today announced that in connection with the SEC's formerly announced review of the Company's change in functional currency, the Company has revised its financial statements resulting in an additional cumulative loss of $1.9 million recorded as equity in income (loss) of joint ventures. Previously reported operating income and cash flows are not affected by this revision. The $1.9 million loss is a cumulative adjustment related to the six-year period from 1993 to 1998. The Company previously announced its intention to proceed with a rights offering to all common stockholders. The Company filed a registration statement with the Securities and Exchange Commission relating to the rights offering. The Company believes it will have adequate cash and available credit until the rights offering is closed. As previously disclosed the SEC staff has reviewed MEMC's registration statement and has issued comments concerning certain legal and accounting issues. The SEC staff questioned the timing of the change in functional currency for accounting purposes used by the Company's two non-consolidated Asian joint ventures. In connection with this review, the Company has agreed to revise its financial statements for 1993 through 1998 to retroactively reflect the change in functional currency from the inception of these joint ventures. The cumulative net effect on results for this six-year period is an additional loss of $1.9 million recorded as equity in income (loss) of joint ventures. The rights and the underlying common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. In any state or other jurisdiction where securities, blue sky or other laws require the rights offering to be made by a licensed broker or dealer, the rights offering will be deemed to be made on behalf of the Company by the dealer managers or one or more registered brokers or dealers licensed under the laws of such jurisdiction. The rights offering will be made only by means of a prospectus. MEMC is the second largest producer of silicon wafers in the world. The silicon wafer is the fundamental building block of semiconductors, which, in turn, are found in virtually all electronics applications, including computers, telecommunications equipment, automobiles, consumer electronics products, industrial automation and control systems, and analytical and defense systems. Headquartered in St. Peters, MO, MEMC operates manufacturing facilities directly or through joint ventures in Italy, Japan, Malaysia, South Korea, Taiwan and the United States. To learn more about MEMC visit its web site at www.memc.com. --30--bk/ny* CONTACT: Janine Orf Director, Investor Relations 314/279-5443 or Michele Katz/Connie Bienfait/ Elric Martinez Morgen-Walke Associates Press: Tammy Rose 212/850-5600 KEYWORD: MISSOURI INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com -0- Mar/02/1999 10:14 EOS (BUS) Mar/02/99 10:14 86 -0- (BUS) Mar/02/1999 10:29

To: Zeev Hed who wrote (4242)	3/3/1999 6:24:00 AM
From: Andrew Vance	Read Replies (1) \| Respond to of 4697

Overall Process for the wafer, which makes it almost immeasurable over each layer. I never said that it was definitive and could be traced back to a specific step or level since the volumes of electrical data to analyze makes it almost impossible. Now a theory, is that Gate Oxide integrity (the gate oxide below the transistor Poly level)could be the root but it is inconclusive. IT makes sense from the stacking fault and/or overall impurity levels of the silicon itself. However, it could just as easily be something as simple as flatness across the wafer giving better litho resolution. The same type of issues held true when we evaluated chemicals from various vendors. We would get C of C (certificates of Compliance) data showing purity levels down to the ppm and ppb levels. No one had the diagnostic equipment in house to verify the C of C but functional testing would result in minor yield differences across split lots, that would support going with one vendor over another. All in all, we are talking about the old adage, "the pennies add up". There are 16-24 photolith steps alone and if one photoresist had a ever so slight resolution edge over another, or had a slight bit more process latitude, it could be seen over the course of all layers processed over time. In the case of photoresists we did have the electrical testing of transistors on flat poly test wafers to better quantify any improvements before moving the experiments over to actual production wafers. The pennies do add up. If a DRAM sells for $10 and you have 200 die (conservative) per wafer, a 1% yield increase is 2 die per wafer and $20 more revenue. However, it is not only the extra revenue and profits that are made with this yield increase, it is also the question of cost or capacity. If your fab is not running at capacity, you lower die cost per wafer by a few bucks, which improves margins. If you are running at capacity, you now have an extra 1-2% equivalent of wafers starts without even starting more wafers. Andrew