Wednesday, January 8, 2014

Seeking Alpha: Ultratech Has To Deliver The Orders This Year

Tech investors may have short memories, but they are quick to punish companies that cannot deliver the goods when it comes to growth. Ultratech (UTEK) has most definitely been a disappointment over the past year, as enthusiasm over the odds of the company seeing its laser spike annealing tools adopted into advanced semiconductor nodes has given way to the reality of significant share loss at the 20nm (most likely to Dainippon Screen (OTC:DINRY)).

Amidst that disappointing backdrop of 2013, the shares have rallied about 20% in recent months. Multiple factories have made LSA the process of record in their 16nm/14nm nodes, and most factories are looking at LSA at multiple steps - increasing the overall addressable market. The key question, though, is whether Ultratech can beat companies like Applied Materials (AMAT) and get the orders and rebuild its share. I'm still bullish on these shares (and still an owner), but for all of the interesting potential in areas like advanced packaging, LEDs, and metrology, it will be the LSA orders in 2014 that really move this stock.

Continue reading here:
Ultratech Has To Deliver The Orders This Year

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