<font color=red>while it is not as thrilling as p4 but still nice
ps I am out for three weeks of r&r gotta go and pack :-))
Regards
-Albert
09:53am EST 22-Nov-00 Josephthal & Co. Inc. (Larry W. Borgman 212-907-4169) AMD
AVNET ANALYST MEETING
Josephthal & Co. Inc.
Institutional Research
200 Park Avenue
New York, New York 10166
(212) 907-4000 Fax: (212) 986-8121
Morning Meeting Note - November 22, 2000
Semiconductor Industry
________________________________________________________________________________
Avnet sees shortages of some components despite customer inventory adjustments.
Avnet (AVT - $18 7/8 - N/R), a large distributor of
electronic components, held an analyst meeting in New York
yesterday and made the following points:
* At the end of September, the company began to see
weakness in its order patterns from Asia, mostly related to
PC and cell phone manufacture. Asia is the smallest region
in Avnet's market mix. In October, management began to see
a lower book to bill in the U.S., accompanied by
considerable inventory churn. So far, through the first
half of November, that churn has continued, with companies
adjusting inventories to lower levels for those parts
formerly thought to be in a shortage situation and now more
readily available. Europe has only begun to see a slowing
in November.
* Management believes that customers are adjusting
inventories based on lead times of the products they are
using. In their view, this is likely a two-month inventory
correction rather than a multiple-quarter slowdown. End
product demand for the products in which the components are
used remains robust. Inventories held by the contract
manufacturers are too large and are being adjusted downward
for parts now more available.
* Some components remain hard to get in management's
view. These include tantalum capacitors, flash memory, FPGA
parts of the type made by Xilinx, and certain wireless
components.
* Microprocessor oversupply appears to have moved through
a bottom in the sense that gray market is drying up and
Avnet is seeing an increased demand. The surplus that was
on the gray market was in competition to the microprocessors
being distributed by Avnet. AMD (AMD-$19 15/16 -Buy-o) has
established itself as a variable volume competitor to Intel
(INTC-$42 5/8-Hold-#,b,o) in Avnet's view. |
