STOCKREPORTS		 GaSonics International Corporation NASDAQ Symbol GSNX
19-JUL-97 Industry:
Equipment (Semiconductor)		 Summary: GaSonics is a leading developer and supplier of semiconductor processing equipment, including dry photoresist removal equipment used in the fabrication of integrated circuits.

Recent Price 17.63
52 Wk Range 18.50 - 6.88		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
4-
Fair Value
19.40
Risk
HIGH
Earn/Div Rank
NR
Technical Evaluation:
BEARISH since 06/97
Rel. Strength Rank (1 Lowest - 99 Highest)
98
Insider Activity
NA

Business Profile 26-MAR-97

Results of this leading supplier of semiconductor processing equipment have historically been and are expected to continue to be very volatile. Sales and earnings in the last half of FY 96 (Sep.) and the first quarter of FY 97 were penalized by the current semiconductor business slowdown. The company anticipates that the industry slowdown will continue to have a material adverse impact on operating results in FY 97, despite growing acceptance of its new products.

Operation Review 26-MAR-97

Revenues in the three months ended December 31, 1996, fell 12%, year to year, reflecting a business slowdown in the semiconductor industry. Gross margins narrowed, reflecting a shift in sales mix to lower-margin products, underutilization of manufacturing and field services and support operations, and higher costs associated with the introduction of new products. Despite a 6.6% decrease in operating expenses, net income plunged 79%, to $929,000 ($0.07 a share), from $4,354,000 ($0.32).

Stock Performance 18-JUL-97n

In the past 30 trading days, GSNX's shares have increased 52%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 818,240 shares, compared with the 40-day moving average of 300,018 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 13.6
Avg. daily vol. (M) 0.413
Tang. Bk. Value/Share 5.60
Beta NA
Shareholders 100
Market cap. (B) $0.241
Inst. holdings 41%
Value of $10,000 invested 5 years ago:NA

Fiscal Year Ending Sep. 30

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 29.69 33.78 20.30 16.80 8.10 NA
Q2 29.59 37.00 23.68 16.10 9.70 NA
Q3 NA 29.06 27.88 16.50 10.60 NA
Q4 NA 27.21 30.14 17.10 13.60 NA
Year NA 127.0 102.1 66.60 41.90 29.75

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 0.07 0.32 0.22 0.26 0.02 NA
Q2 0.09 0.32 0.24 0.20 0.05 NA
Q3 NA 0.06 0.41 0.18 0.09 NA
Q4 NA -0.03 0.34 0.24 0.18 NA
Year NA 0.65 1.21 0.87 0.33 NA

Dividend Data: No cash dividends have been paid. A three-for-two stock split was effected in 1995.

Business Summary 26-MAR-97

GaSonics International Corp. is a leading developer and supplier of a portfolio of products and services used in the fabrication of advanced integrated circuits and flat panel displays. Products include photoresist removal systems, residual removal systems, isotropic etch systems and high pressure furnaces for the semiconductor industry, and low pressure chemical vapor deposition for the flat panel display industry. The company's photoresist removal, residual removal and isotropic etch systems utilize proprietary technology to increase yields in the manufacture of advanced integrated circuits.

Contributions to sales in recent fiscal years (Sep.) were:

FY 96 FY 95 FY 94
Photoresist removal equipment 62% 69% 67%
Spare parts, service & support 21% 20% 22%
Isotropic etching & other 17% 11% 11%

International sales represented 54% of the total in FY 96, 40% in FY 95, and 41% in FY 94.

GaSonics is the world's largest supplier of plasma wafer cleaning equipment, the market for which is expected to grow faster than the semiconductor equipment market as a whole because the "dry" technology it uses is more cost effective than traditional wet technology, installation and operating costs are lower, less floor space is required, and it is more environmentally friendly. In addition, the company's proprietary "downstream" plasma technology provides higher yield for advanced semiconductor manufacturing than either wet processing or competitive dry processing products available, by reducing damage to exposed wafer surfaces. A single photoresist removal system typically costs $150,000 to $600,000.

The company introduced its Performance Enhancement Platform (PEP) in 1995. The PEP is a dual chamber platform which, through a proprietary wafer handler and high yield ashing, provides users with a lower cost per wafer pass while providing yield advantage with GaSonics' downstream microwave processing.

GaSonics sells its products to leading integrated circuit manufacturers throughout the U.S., Europe and the Pacific Rim, including Intel (11%, 20% and 26% of sales in FY 96, 95 and 94 respectively), Motorola, Samsung, Siemens, and Lucent Technologies.

The company's operating results have been and will likely continue to be very volatile, because of a factors that include the cyclicality of the semiconductor industry and the markets served by the company's customers, the timing of significant orders, and patterns of capital spending by customers.

Capitalization

Long Term Liabilities: $534,000 (12/96).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 0.65 4.78 2.75 0.81 NA NA NA NA NA NA
Cash Flow 0.87 1.27 0.91 0.37 NA NA NA NA NA NA
Earnings 0.65 1.21 0.87 0.33 NA NA NA NA NA NA
Dividends Nil Nil Nil Nil NA NA NA NA NA NA
Payout Ratio Nil Nil Nil Nil NA NA NA NA NA NA
Prices - High 16 1/4 27 14 NA NA NA NA NA NA NA
- Low 6 1/2 10 1/8 6 1/2 NA NA NA NA NA NA NA
P/E Ratio - High 25 22 16 NA NA NA NA NA NA NA
- Low 10 8 8 NA NA NA NA NA NA NA

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 127 102 66.6 41.9 NA NA NA NA NA NA
Oper. Inc. 15.2 20.7 14.9 6.1 NA NA NA NA NA NA
Depr. 2.9 0.8 0.4 0.3 NA NA NA NA NA NA
Int. Exp. 0.1 0.0 0.2 0.5 NA NA NA NA NA NA
Pretax Inc. 13.7 25.7 15.6 5.4 NA NA NA NA NA NA
Eff. Tax Rate 35% 37% 37% 35% NA NA NA NA NA NA
Net Inc. 8.9 16.1 9.9 3.5 NA NA NA NA NA NA

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 25.9 36.6 21.2 1.2 NA NA NA NA NA NA
Curr. Assets 82.4 76.6 41.8 18.7 NA NA NA NA NA NA
Total Assets 96.4 85.4 43.7 20.1 NA NA NA NA NA NA
Curr. Liab. 23.2 21.6 9.6 9.2 NA NA NA NA NA NA
LT Debt Nil Nil Nil 1.8 NA NA NA NA NA NA
Common Eqty. 72.7 63.2 33.4 8.4 NA NA NA NA NA NA
Total Cap. 72.7 63.2 33.4 10.2 NA NA NA NA NA NA
Cap. Exp. 7.0 5.0 0.9 0.5 NA NA NA NA NA NA
Cash Flow 11.8 16.9 10.3 3.8 NA NA NA NA NA NA

Curr. Ratio 3.6 3.6 4.3 2.0 NA NA NA NA NA NA
% LT Debt of Cap. Nil Nil Nil 17.7 NA NA NA NA NA NA
% Net Inc.of Revs. 7.0 15.8 14.9 8.4 NA NA NA NA NA NA
% Ret. on Assets 9.8 25.0 31.0 19.6 NA NA NA NA NA NA
% Ret. on Equity 13.1 33.4 47.3 52.8 NA NA NA NA NA NA

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--2450 Junction Ave., San Jose, CA 95134-1909. Tel--(408) 570-7000. Website--http://www.gasonics.com Chrmn--M. M. Toole. Pres & CEO--D. J. Toole. VP-Fin, CFO & Investor Contact--Terry Gibson. Dirs--D. J. Toole, M. M. Toole, K. L. Schroeder, F. J. Van Poppelen. Transfer Agent & Registrar--U.S. Stock Transfer Corp., Glendale, CA. Incorporated--in California in 1971; reincorporated in Delaware in 1994. Empl-- 480. S&P Analyst: Adam Penn


This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997