{ "docId": "019dd923-622c-750b-8b9a-0f4bec37392f", "docSlug": "f982379e2e48", "documentTitle": "Lasertec Corporation (6920)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-06-05 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 209, "pageCount": 334, "prevPage": 208, "nextPage": 210, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A transcript format to undermine the company's revenue quality and operational success.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-0f4bec37392f/209", "deckHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f#slide-209", "components": [ { "bbox": null, "kind": "callout", "text": "“Pretty much all customers are struggling in phasing in the Lasertec tool”; current revenue likely previous pre-orders", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b7-702e-9616-ba99ed55e6bd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.86, "x": 0.07, "y": 0.23 }, "kind": "paragraph", "text": "“Pretty much all customers are struggling in phasing in the Lasertec tool”; current revenue likely previous pre-orders", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "534d0ed2-ca1e-4c14-b033-76a28ff4b7d2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.65, "w": 0.86, "x": 0.07, "y": 0.27 }, "kind": "quote", "text": "A: “[W]hen TSMC delays orders, then all the tools, which are sitting in the fab, cannot move out, so the cash flow goes down.”\nQ: “They have a billion dollars of inventory—at least, they value it at a billion dollars; I don't know if they're valuing it accurately. Most of that is disclosed as work-in-process inventory, not finished goods. It keeps going up every year, so the inventory is equal to revenue, which is unusual. There's almost no semi-cap company where the inventory as a percentage of revenue is that high. It's really weird.”\nA: “Yeah, I totally agree. [chuckles] But I think it will clear up once they can start shipping what they have in the fab [chuckles].”\nQ: “Have they had some problems shipping? Have they been sitting on a bunch of inventory - is that what you've heard?”\nA: “Yeah, because customers a) they haven't been successful with the qualification and b) the demand is low.”\nQ: “Which customers have not been successful with the qualification?”\nA: “TSMC. Pretty much all customers are struggling in phasing in the Lasertec tools.”\nQ: “Because of the quality problems?”\nA: “Yes. Uptime, light source problems.”\nQ: “So, they are basically delaying the implementation of the tools.”\nA: “Yes...there was a first wave [of orders], so the customer ordered, let's say, 10 tools, and when the tools arrived, they started to see this and that problem, so they delayed the tools after that. So, there was a first wave, where they increased revenue, and now that they're waiting for repeat orders, they find out that the phasing of the tools is not so easy.”\nQ: “So, you think most of the sales that they recognize today are just pre-orders from a couple of years ago? “\nA: “Probably pre-orders or initial orders.”\nQ: “And now, people are holding back.”\nA: “Yes. And one is implementation takes longer than expected and the second one is the slow-down of the industry. So, the two factors work together to slow down the shipments. For example, TSMC Arizona is delayed by a year or two. So, equipment gets delayed.” - Longtime, senior semicap equipment executive in Japan who is friendly with Lasertec’s CEO", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ae726dfa-afda-4d87-b686-0efb1ad8fa11", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Yes. And one is implementation takes longer than expected and the second one is the slow-down of the industry. So, the two factors work together to slow down the shipments. For example, TSMC Arizona is delayed by a year or two. So, equipment gets delayed.” — Longtime, senior semicap equipment executive in Japan who is friendly with Lasertec’s CEO", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b7-702e-9616-bfa09c3360cb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.07, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "08b9dbf2-1ef8-4d13-ae01-4d4310cb1ab3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "The executive stated that TSMC and “pretty much all customers are struggling in phasing in the Lasertec tools” due to “uptime, light source problems” and that “customers a) haven’t been successful with the qualification and b) the demand is low.” As a result, he indicated that TSMC is delaying Lasertec orders and that current sales are “probably pre-orders or initial orders” from several years ago.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df62c8f3-9261-42aa-9086-09afb324f6d4", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }