{ "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": 22, "pageCount": 334, "prevPage": 21, "nextPage": 23, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a Q&A transcript to validate the claim of inventory worthlessness.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-0f4bec37392f/22", "deckHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f#slide-22", "components": [ { "bbox": null, "kind": "callout", "text": "Lasertec has never had an EUV technology that actually works: key customers have stopped buying new ACTIS systems; are refusing to accept shipment with ones like Intel “pushing, pushing, pushing out” purchase orders; inventory is piling up.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b6-764f-bc77-b248f9483fcd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "The balance sheet already told us where the bodies are buried, but didn't foretell the stench when we found them. Lasertec's inventory is inflated is because 1) its flagship EUV product line is defective and fatally flawed; 2) it has no margin because of costly component replacements, recalls, discounts, and inducements; and 3) worthless inventory is hence fraudulently overstated as an offset to understated expenses and fake earnings, the accounting mechanics of which we shall explain. Lasertec has never had an EUV technology that actually works: key customers have stopped buying new ACTIS systems; are refusing to accept shipment with ones like Intel “pushing, pushing, pushing out” purchase orders; inventory is piling up; the head of Intel’s EUV mask shop is allegedly so angry that he has been banned from meetings for blowing up at Lasertec; TSMC, Global Foundries, and Marvell laugh at the product; the “new” ACTIS A300 failed inspection at TSMC, per 4 sources; and key customers told us that Lasertec is quietly offering them ~75% discounts, trade-in’s, and other inducements and concessions – proof that Lasertec’s reported inventory is worthless.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c6201d7c-3755-45c8-9068-a84101521911", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.86, "x": 0.07, "y": 0.55 }, "kind": "quote", "text": "Lasertec desperate to offload ACTIS inventory; offering up to ~75% discounts on A150; offering various inducements\nQ: “Do you remember any color around the inventory build-up?”\nA: “When our [Marvell senior executive – title redacted] went to go visit, they were trying to also offer additional A150’s that they had on the books that weren’t, let’s say, being taken ownership of by other competitors that had presumably forecasted that they needed them. And so, we were getting a reduced price as well if we wanted to purchase additional A150s and that price was closer to about, in the range of $15 to 30 million.”\nQ: “So, they were willing to sell those machines at half or a third of their price?”\nA: “Yeah, and also, again, that’s why the comment that I gave earlier, which is that if we were to buy an A150—”\nQ: “Yeah, they’ve got to write down all that inventory.”\nA: “Yeah.”\nQ: “My question is, did that really happen? They offered you guys $15 to 30 million to take A150’s? This literally just happened a few weeks ago?”\nA: “Yeah.” – Senior employee at Marvell Technology", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "76934da4-4a8d-40e3-aa31-5876fb3b3cad", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“When our [Marvell senior executive - title redacted] went to go visit, they were trying to also offer additional A150’s that they had on the books that weren’t, let’s say, being taken ownership of by other competitors that had presumably forecasted that they needed them. And so, we were getting a reduced price as well if we wanted to purchase additional A150s and that price was closer to about, in the range of $15 to 30 million.” — Senior employee at Marvell Technology", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b6-764f-bc77-b7c5d8c002bd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.07, "y": 0.91 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9b0d7461-d8d0-4b17-969b-f15ce3ff686e", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "5d262c5b-6fd7-40bb-8fb0-fb2e3405f7be", "evidence": "The slide explicitly claims fraudulent overstatement of inventory and fake earnings.", "confidence": 0.9 } ], "arcBeats": [ { "to": 80, "from": 11, "beatId": "7e31b42d-7913-4bdc-94a9-6f7195daecb2", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The deck presents numerous slides exposing alleged contradictions and flaws in Lasertec's products and financials.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }