STOCKREPORTS		 Genus, Inc. NASDAQ Symbol GGNS
21-JUN-97 Industry:
Equipment (Semiconductor)		 Summary: This company makes high-energy ion implantation and advanced thin-film deposition equipment used in the production of advanced semiconductor integrated circuits.

Recent Price 4.94
52 Wk Range 9.63 - 3.50		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
B-
Technical Evaluation:
BULLISH since 03/97
Rel. Strength Rank (1 Lowest - 99 Highest)
30
Insider Activity
NA

Business Profile 12-FEB-97

Technological change, stiff competition and obsolescence are characteristic of the semiconductor equipment industry. Thus, Genus has to invest heavily in R&D and differentiate its products through capability, quality and customer support. In response to a downturn in the semiconductor industry in 1996, GGNS is centralizing several key areas to lower operating expenses and improve efficiencies. In connection with this plan, Genus announced a work force reduction of 27 people, or 8% of its permanent employees.

Operation Review 12-FEB-97

Revenues in 1996 (preliminary) fell 18%, mainly reflecting soft market conditions. Margins narrowed, and after a $5,890,000 special charge, a pretax loss of $11,405,000 contrasted with pretax income of $8,303,000. After a tax benefit of $2,200,000, versus $10,979,000, the net loss was $9,205,000 ($0.56 a share, on 2.2% more shares), compared to net income of $19,282,000 ($1.20).

Stock Performance 20-JUN-97n

In the past 30 trading days, GGNS's shares have increased 20%, compared to a 9% rise in the S&P 500. Average trading volume for the past five days was 63,740 shares, compared with the 40-day moving average of 98,513 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 16.8
Avg. daily vol. (M) 0.087
Tang. Bk. Value/Share 4.00
Beta 2.90
Shareholders 500
Market cap. (B) $0.083
Inst. holdings 14%
Value of $10,000 invested 5 years ago:$ 13,619

Fiscal Year Ending Dec. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 19.68 26.36 22.53 13.77 4.06 8.70
Q2 NA 25.10 25.06 14.97 13.68 9.40
Q3 NA 13.89 27.24 18.20 12.21 10.46
Q4 NA 17.16 25.53 16.63 14.29 11.50
Year NA 82.51 100.3 63.62 44.24 40.10

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 0.01 0.04 0.13 0.05 -0.49 -0.43
Q2 NA 0.04 0.14 0.08 -0.06 -0.65
Q3 NA -0.48 0.14 0.09 -0.07 -0.19
Q4 NA -0.14 0.77 0.10 0.05 -0.18
Year NA -0.56 1.20 0.32 -0.57 -1.45

Dividend Data: No dividends have been paid, and the company intends to reinvest earnings in the business.

Business Summary 12-FEB-97

Genus, Inc. designs, manufactures and services technologically advanced thin-film deposition, high-energy ion implantation and vapor phase wafer cleaning equipment for high-volume production of advanced ultra large scale integration (ULSI) semiconductor devices. The company was the first to market chemical vapor deposition (CVD) tungsten silicide, CVD blanket tungsten and high energy (MeV) ion implantation sytems--three critical technologies for semiconductor manufacturing. Genus currently holds market leadership positions in both tungsten silicide CVD and MeV ion implantation.

The primary products produced by the company include three CVD tungsten systems and two MeV ion implantation systems. Its proprietary cold-wall CVD systems deposit thin films of tungsten silicide or blanket tungsten on silicon wafers as interconnect material in VLSI devices. Its ion implantation systems use a high-energy process to deeply implant silicon wafers with selected dopants to modify the electrical characteristics of the wafers to achieve the desired electrical performance of the integrated circuits. The systems are designed to operate in volume production environments in which high throughput and device yield are important.

The company sells and supports both its CVD and ion implantation products through direct sales and customer support organizations in the U.S., Western Europe and Korea, and through six independent exclusive sales representatives and distributors in the U.S., Japan, Korea, Taiwan and Hong Kong. In 1995, one customer accounted for 63% of net sales.

Important Developments

Jan. '97 Genus announced a reduction of its work force by approximately 27 people, or 8% of its permanent employees worldwide, as part of a restructuring to deal with slower sales growth.
Dec. '96 The company introduced at the SEMICON Japan 96 trade conference in Tokyo a new proprietary dicholorosilane DCS chemical vapor deposition (CVD) film. Genus claims this new patent pending technology offers improved adhesion and 20% lower sheet resistance after anneal than standard DCS films.

Capitalization

Long Term Debt: $1,260,000 (12/96).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 4.00 4.48 2.89 2.56 3.16 4.69 5.14 6.37 3.20 -17.62
Cash Flow -0.14 1.62 0.51 -0.30 -1.07 0.05 -0.91 1.07 0.68 -1.22
Earnings -0.56 1.20 0.32 -0.57 -1.45 -0.35 -0.16 0.93 0.30 -1.78
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Prices - High 12 3/8 17 1/8 8 5/8 4 1/8 5 1/2 5 8 7/8 14 6 7/8 NA
- Low 4 3/4 6 3/4 2 7/8 1 3/4 1 1/2 1 1/8 1 1/8 6 1/4 4 3/4 NA
P/E Ratio - High NM 14 27 NM NM NM NM 15 23 NA
- Low NM 6 9 NM NM NM NM 7 16 NA

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 82.5 100 63.6 44.2 40.1 51.5 54.0 87.3 55.2 15.2
Oper. Inc. 1.4 12.2 6.3 -3.1 -9.6 -0.6 -10.6 16.2 6.9 -3.1
Depr. 6.9 4.2 2.5 3.2 4.4 4.5 2.7 1.5 2.6 1.5
Int. Exp. 0.2 0.2 0.2 0.3 0.1 0.0 0.0 0.2 0.8 0.1
Pretax Inc. -11.9 8.3 4.4 -6.9 -17.1 -4.0 -14.4 15.7 3.5 -4.5
Eff. Tax Rate NM NM 4.90% NM NM NM NM 38% 45% NM
Net Inc. -9.2 19.3 4.2 -6.9 -17.1 -4.0 -13.0 9.8 2.1 -4.5

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 11.8 12.6 10.2 10.4 9.7 22.2 15.7 24.5 2.8 0.5
Curr. Assets 58.9 69.0 40.7 34.6 38.6 49.2 50.4 74.2 32.0 10.6
Total Assets 89.1 95.0 55.0 45.2 49.3 61.0 64.8 84.3 39.8 13.0
Curr. Liab. 19.6 19.0 17.5 12.4 9.1 6.4 6.7 13.7 10.4 2.7
LT Debt 1.3 1.0 0.5 1.0 2.3 0.2 0.2 0.2 0.0 0.1
Common Eqty. 68.3 75.4 37.0 31.8 37.8 54.4 57.9 70.4 29.3 -18.7
Total Cap. 69.5 76.4 37.5 32.8 40.1 54.6 58.1 70.6 29.4 10.3
Cap. Exp. 6.6 5.6 4.7 3.5 5.2 2.2 5.7 3.4 1.5 0.8
Cash Flow -2.3 23.5 6.7 -3.6 -12.7 0.6 -10.3 11.3 4.7 -3.1

Curr. Ratio 3.0 3.6 2.3 2.8 4.2 7.7 7.6 5.4 3.1 3.9
% LT Debt of Cap. 1.8 1.3 1.4 3.2 5.8 0.3 0.4 0.3 0.1 0.4
% Net Inc.of Revs. NM 19.2 6.6 NM NM NM NM 11.2 3.7 NM
% Ret. on Assets NM 25.7 8.2 NM NM NM NM 14.1 3.0 NM
% Ret. on Equity NM 34.5 12.0 NM NM NM NM 17.7 NM NM

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--1139 Karlstad Dr., Sunnyvale, CA 94089. Tel--(408) 747-7120. Chrmn--W. W. R. Elder. Pres & CEO--J. Healy. EVP, CFO & SECY--K. L. Robertson. Treas--E. P. Quinones. Dirs-- W. W. R. Elder, S. Fisher, G. F. Forsyth, T. S. Myhre, M. M. Rosati. Transfer Agent & Registrar--ChaseMellon Shareholder Services, Ridgefield Park, NJ. Incorporated--in California in 1981. Empl-- 319. S&P Analyst: S.A.H.


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