{ "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": 249, "pageCount": 334, "prevPage": 248, "nextPage": 250, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 1, "notes": "The slide uses a Q&A format to present expert testimony regarding potential accounting or operational irregularities.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-0f4bec37392f/249", "deckHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f#slide-249", "components": [ { "bbox": null, "kind": "callout", "text": "I think they will never cancel those POs because some of those POs are basically there because of the investment they got. It's just there because they owe Intel money, so that's what they did.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b7-702e-961a-7e5ff60edf16", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.86, "x": 0.07, "y": 0.55 }, "kind": "list", "text": "Intel was most of the advances and are being “pushed, pushed, pushed out” and will likely never be filled. Q: “You said a lot of their advances in their inventory is Intel gave them too many PO’s. You said they were trying to transfer some of them to TSMC. Can you talk about some of that?” A: “What I said is the following: in the beginning, when it started, most of the slots were Intel slots.” Q: “Most of the slots were Intel slots.” A: “And then they were basically promoting that to TSMC helping Lasertec to put the case in TSMC that’s the only tool, and TSMC was just starting a PO. And what Intel did, they delayed those slots, and you started to see that there were more and more PO’s coming up from TSMC and after that from Samsung, and those Intel POs are pushing, pushing, pushing out. I think they will never cancel those POs because some of those POs are basically there because of the investment they got. It’s just there because they owe Intel money, so that’s what they did. Those POs—” Q: “You’re saying they’re advances. There are a bunch of Intel POs that will never get filled.” - Former KLA executive in a leadership role in their EUV mask inspection group", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1fbad7e4-4032-4167-bbfd-62b7dfd371f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.86, "x": 0.07, "y": 0.42 }, "kind": "list", "text": "Inventory level is “pretty scary” and “weird”; “doesn’t seem normal”; “To have a billion dollars of inventory, that’s pretty scary...it’s pretty weird. That doesn’t seem normal. That’s pretty bad if they’ve got a billion dollars of inventory.” - Former KLA executive in a leadership role in their EUV mask inspection group", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6a7de2c6-1655-4be5-92cb-c359a27f0be7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.32, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "The ex-KLA executive described Lasertec’s $1.2 billion of inventory as “pretty scary...pretty weird...doesn’t seem normal...that’s pretty bad.” He stated that most of the initial advances and purchase orders for the EUV tool were from Intel, their “founding customer” – “when it started, most of the slots were Intel slots” – but that they are now being “pushed, pushed, pushed out” and will likely never be filled, with the PO’s just sitting on Lasertec’s balance sheet as advances until the inevitable impairment charge and capitulation: “Intel...delayed those slots...they will never cancel those PO’s...because of the investment they got...it’s just there because they owe Intel money...”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e4bf9d39-90b4-45a2-91b5-bed33cf3dc46", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“To have a billion dollars of inventory, that’s pretty scary...it’s pretty weird. That doesn’t seem normal. That’s pretty bad if they’ve got a billion dollars of inventory.” — Former KLA executive in a leadership role in their EUV mask inspection group", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b7-702e-961a-80e82a76949d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "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": "f6e0b68e-5156-4625-9eeb-111ed3b138e0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "edd117ea-f76a-4e20-af65-63b700093f05", "evidence": "The slide explicitly frames inventory and POs as potentially fraudulent or misleading accounting practices.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }