Goolie,
My interpretation would be - AMAT's order is classified as a just-in-time supply contract with large capital semi equipment firms. According to 10-Q, these types of orders are typically not included in the calculation of backlog. Therefore, don't be surprised if you are not to see a significant increase on 4th Qtr backlog. Their book-entry also reflects that they aren't booking these types of just-in-time supply contract into backlog. Notice last quarter's backlog was actually smaller than order booked (something like 26 mil. vs. 34 mil.) I was confused on that 26 millions backlog, which lasts only good for one quarter, incompatible to 1.6 book-to-bill ratio. My inference would be that actual order is larger than the backlog since they don't include the supply contract into backlog calculation.
Also, AMAT seems to be a long-term partner with ASTX. So, this 3-years supply contract may be just a renewal to the old contract. I am optimistic enough to assume that this contract is larger than the previous contract amount. But I suppose that $145 million not a complete new addition. If you have time, maybe you can read into 10-K to see how big the portion AMAT contributed to the previous ASTX's sales.
In any event, 1.6 book-to-bill ratio seems to be able to lift the bottom line to north of 20 cents in next quarter providing that manufacturing capacity not restrained.
They placed new secondary IPO for 2.2 million before last quarter, which resulted in a squeaky clean balance sheet. Do you know any reason for this IPO? |
