{ "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": 98, "pageCount": 334, "prevPage": 97, "nextPage": 99, "slideType": "testimonial", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to present expert testimony regarding inventory build-up and valuation concerns.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-0f4bec37392f/98", "deckHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-0f4bec37392f#slide-98", "components": [ { "bbox": null, "kind": "callout", "text": "I can tell you right off the bat...they haven’t taken any impairments against their balance sheet, so they’re probably over-valuing their inventory far greater than it’s actually worth.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b6-764f-bc7e-75df1785f58b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.86, "x": 0.07, "y": 0.38 }, "kind": "list", "text": "Marvell witnessed “a build-up of inventory” during Lasertec visit; “lot of these companies are sitting on so much inventory” due to 5N slowdown", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "461202ae-865c-46d8-811f-25725f06c7c9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "Marvell was one of several customers we interviewed who recently visited Lasertec’s headquarters and reported seeing an unusual level of machine inventory – the Marvell executive “mention[ed] a build-up of inventory when they visited the Lasertec headquarters – and indicated skepticism of Lasertec’s inventory valuation: “I can tell you right off the bat…they haven’t taken any impairments against their balance sheet, so they’re probably over-valuing their inventory far greater than it’s actually worth…a lot of these companies are sitting on so much inventory….”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3afd9e68-99f3-405b-8534-7b0181348e53", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.44 }, "kind": "paragraph", "text": "Q: “What was the overall feedback from the [Marvell executive – title redacted] who visited Lasertec?\nA: “[T]hey did mention a build-up of inventory when they visited the Lasertec headquarters…I can tell you right off the bat that the reason why that is inducements probably because they haven’t taken any impairments against their balance sheet, so they’re probably over-valuing their inventory far greater than what it’s actually worth.”\nQ: “What was the inventory comment that [Marvel executive – title redacted] made? It’s very interesting because that’s a second data point, so I’m just trying to see how credible it is.”\nA: “There’s credibility to it because that’s what I’ve also heard as well. A lot of these companies are sitting on so much inventory because the 5 nanometer, the market size of it, has basically softened to a significant degree from 2022 to currently. I can give you some additional context. In 2021, when we forecasted a 5-nanometer wafer throughput for our needs to, let’s say, TSMC, we were forecasting that by 2023, we would need about 15,000 to 18,000 5-nanometer wafers. And our total throughput was only about 4,000-5,000. Now, when we did that forecast in 2021, that’s when—you’re not just forecasting TSMC but you’re forecasting to all your hardware needs, all of your hardware manufacturers that you work with…everybody is sitting on additional inventory…that’s an issue across all 5-nanometer architecture.” – Senior employee at Marvell Technology", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de3d7bfe-826d-42fc-a2f7-c200e2a7d75f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I can tell you right off the bat...they haven’t taken any impairments against their balance sheet, so they’re probably over-valuing their inventory far greater than it’s actually worth...a lot of these companies are sitting on so much inventory....” — Marvell executive; “everybody is sitting on additional inventory...that's an issue across all 5-nanometer architecture.” — Senior employee at Marvell Technology", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b6-764f-bc7e-7b04fb0d5aef", "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": "e02f3b7e-9b15-4190-8752-81c3d917f0c3", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }