{ "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": 95, "pageCount": 334, "prevPage": 94, "nextPage": 96, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 4, "notes": "The slide uses a Q&A transcript format to provide evidence of inventory devaluation.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-0f4bec37392f/95", "deckHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f#slide-95", "components": [ { "bbox": null, "kind": "callout", "text": "Lasertec never explained what was different about the ACTIS tools sold in Q1 such that they had no margin – each tool is the same, and the obvious implication is that if those are worthless, then so is the $1.2B of inventory on its balance sheet.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b6-764f-bc7e-44d5fef34875", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "Lasertec never explained what was different about the ACTIS tools sold in Q1 such that they had no margin – each tool is the same, and the obvious implication is that if those are worthless, then so is the $1.2B of inventory on its balance sheet, which is therefore mis-valued to avoid an impairment charge. As a preview of a later section, we quote a Marvell senior employee who shared color from an executive’s recent visit to Lasertec’s headquarters: they were desperate to offload ACTIS inventory, offering Marvell up to ~75% discounts on the A150, as well as other inducements and concessions that acknowledged uptime and reliability problems: “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...we were getting a reduced price as well if we wanted to purchase additional A150’s...in the range of $15-30MM.” Marvell stated they previously paid $62MM for the A150.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a9e7f104-2c12-4f3c-9bdf-5721a35d3a0d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.38, "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 color?”\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 try 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": "6275fd79-9d9d-4932-9260-f45e2a39564b", "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-bc7e-4b1b3bc7985d", "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": "cb716d56-cac1-40db-8376-8d8d4ed87c7b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "583b64c7-256e-409b-8dab-2961a198c9ba", "evidence": "The slide explicitly links inventory valuation to potential impairment avoidance and uses expert testimony to expose the contradiction.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }