Company Reports

Disco's revenue and operating margin for the June quarter stood at JPY 114 billion and 43%, up 27% and 455 basis points year on year. Shares fell 14% at the open.

Disco primarily focuses on dicing and grinding equipment used in semiconductor manufacturing. We expect the growing precision required for chip manufacturing to generate outsize growth opportunities for the company over the next five years.

Disco's preliminary unconsolidated revenue and shipments for the June quarter of JPY 95 billion and JPY 116.5 billion were up 26% and 25% year on year, respectively. Disco will report its full set of earnings on July 23.

We are revising our estimates for Disco following our meeting with management after the company's fourth-quarter earnings.

Disco primarily focuses on dicing and grinding equipment used in semiconductor manufacturing. We expect the growing precision required for chip manufacturing to generate outsize growth opportunities for the company over the next five years.

Disco primarily focuses on dicing and grinding equipment used in semiconductor manufacturing. We expect the growing precision required for chip manufacturing to generate outsize growth opportunities for the company over the next five years.

Disco's revenue and operating margin for the fiscal quarter ending March stood at JPY 133 billion and 44%, up 10% and 131 basis points year on year, respectively.

Disco's preliminary unconsolidated revenue for the March quarter stood at JPY 104.9 billion, up 2% year over year and 19% sequentially. Disco will release its full set of earnings on April 22. Shares closed 6% lower following the announcement of the preliminary results.

We initiate coverage of Disco, a Japanese semiconductor equipment manufacturer that produces saws, grinders, and polishers for semiconductor wafers. Disco is the world's largest manufacturer of semiconductor dicing and grinding equipment, with an estimated market share of 60%-70%.

Disco primarily focuses on dicing and grinding equipment used in semiconductor manufacturing. We expect the growing precision required for chip manufacturing to generate outsize growth opportunities for the company over the next five years.