NEW YORK -(Dow Jones)- Strong earnings from Aseco Corp. and Cohu Inc.
signaled to investors that the worse may be over for the beleaguered
semiconductor test and assembly equipment market. Both company's shares
reached 52-week highs Friday.
Aseco, based in Marlboro, Mass., late Wednesday reported its highest
book-to-bill ratio since June 1997, and its highest level of quarterly booking
since March 1998. Fiscal first-quarter revenue was up 21% to $47 million
from the previous three months, and losses were narrower than the
company's internal projections.
Since reporting the news, Aseco (ASEC) shares have doubled in value.
Following a 53% surge Thursday, the stock Friday closed up $1.375, or 69%,
at $3.375, on volume of 961,000 shares. Average daily volume of the
Nasdaq-listed stock is 53,000 shares. Earlier, the stock hit a new 52-week
high of $4.063, topping the previous ceiling of $4, which was set on
Thursday. Needham & Co. analyst Theodore Rudd O'Neill said investors may
have also been reacting to news that the company's lenders agreed to
renegotiate the company's credit agreement. Aseco currently doesn't meet the
lender's balance sheet requirements, O'Neill said.
Aseco officials weren't immediately available to comment.
Cohu Inc., based in San Diego, posted a huge upside surprise Thursday with
second-quarter earnings of 48 cents a share. O'Neill had expected the
company to earn 17 cents a share.
Cohu said new orders in the second quarter rose to $62.3 million from $42.4
million a year ago and $38.9 million in the first quarter. Backlog at June 30
was $56.3 million, compared with $37.5 million at March 31.
Cohu (COHU) shares also hit consecutive 52-week highs on the news, trading
up as high as $45 Friday, up from Thursday's high of $39. At Friday's close,
the stock was up $3.063, or 7.9%, at $42, on volume of 389,000 shares.
Average daily volume of the Nasdaq-listed stock is 47,300 shares.
Demand for semiconductor test and assembly equipment is "as strong as we
have ever seen it," said Needham & Co. analyst Theodore Rudd O'Neill,
explaing that it is being driven by the unit volume of integrated circuits. While
integrated circuit volume languished from September 1997 through January
1999, volume has been on a "sustained uptrend" ever since.
O'Neill said he expects other test and assembly equipment makers, Teradyne
Inc., LTX Corp. and Credence Systems Corp., to post similarly positive
results.
|
