Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 268.79

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To: Jeffrey D who wrote (31312)	7/7/1999 9:43:00 PM
From: Jeffrey D	Read Replies (2) of 70976

Semiconductor portion of Goldman Sachs technology report via Dow Jones Newswire from today. Jeff << In the semiconductor industry, Goldman Sachs forecasts strong second-quarter results, particularly in non-personal computer markets such as communications, programmable logic, analog and general logic. The PC sector of the semiconductor industry is slumping as supply has caught up to demand and original equipment manufacturer inventory levels have been cut. Goldman sees "sloppy" second results for PC-oriented companies, but expects them to rebound sharply in the second half of the year. The analysts like Intel Corp. (INTC) due to its recent cost reduction program. Goldman Sachs expects semiconductor equipment companies, with the exception of drive component equipment makers, to post strong second-quarter results. The analysts predicted earnings per share would rise 73% from the first quarter. Goldman's favorite stocks in this space are Teradyne Inc. (TER), Applied Materials Inc. (AMAT) and ASM Lithography Holding NV (ASML). Demand across Asia's technology sector continues to accelerate sharply, driven by the global recovery of the semiconductor industry and the trend of outsourcing to Asia, the analysts said. Goldman Sachs projects second-quarter PC shipments of about 24 million units, up 10% from a year ago but down 2% to 4% from the first quarter. The second quarter is typically soft due to seasonal factors. Goldman expects cost reductions at direct PC vendors and Apple Computer Inc. (APPL) will mean sequentially flat to higher gross margins that will help offset potential revenue shortfalls at those companies.

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