I cannot see any tech sector which is having anywhere close to what could be called decent quarters when compared to only 12-16 months ago.
Take a look at the compound semiconductor equipment companies. Fundamentals seems to be holding up although valuations are down.
Aixtron stock defies semiconductor gloom
By Marijn van der Pas
DUESSELDORF, March 9 (Reuters) - Shares in Aixtron AG shrugged off global semiconductor gloom, rising more than seven percent on Friday after full year results from the company beat analysts' expectations.
By 1310 GMT, shares in the German semiconductor equipment maker were 7.8 percent higher at 86.30 euros while the DJ Stoxx technology index lost 3.26 percent and the Neuer Markt Nemax 50 index was 2.18 percent lower.
``The positive outlook on the results gave the shares wings,'' said Antje Liermann, a trader at private bank M.M. Warburg.
Aixtron's share performance contrasted sharply with other semiconductor stocks which slumped on Friday, in the wake of a third consecutive sales warning from the world's biggest maker of computer chips, Intel Corp (NasdaqNM:INTC - news).
Aixtron, which manufactures machines to produce semiconductors that are used in LEDs (light-emitting diode), the telecommunication industry and solar cells, said it was not concerned at the possibility of weakening economic growth leading to orders being cancelled.
``Most of our products are custom-made. This is why it is very difficult for our customers to pull orders,'' Chief Executive Officer Kim Schindelhauer told a news conference.
Aixtron stock is trading 52 percent below its August 2000 all-time high of 179.00 euros but the stock has gained almost 40 percent since hitting a 12-month-low of 62.00 on January 5.
The stock was also supported by the upgrade by German research house SES Research to ``outperformer'' from ``marketperformer''. SES said the company is trading at a fair price and has an excellent market position.
UPBEAT OUTLOOK
Late on Thursday, Aixtron posted a 78 percent rise in 2000 net profit to 18.5 million euros while sales rose 87 percent to 157.9 million, beating analysts' expectations.
Full year earnings before interest and tax (EBIT) were up 92 percent to 32.9 million euros, roughly in line with analyst expectations.
Five analysts polled by Reuters expected the Neuer Markt-listed company to report 2000 net profit of 16.6 million euros on sales of 151.1 million, while EBIT was seen at 32.08 million euros.
Aixtron plans to increase sales to 235 million euros this year when it sees a net profit of 29.5 million. The company plans to pay a 2001 dividend of 0.20 per share, after concluding a planned one-for-one share split.
Over 2000, the company said it will pay its shareholders a dividend of 0.20 euros per share, a rise of 122 percent from the previous year.
The forecasts for this year, released late on Thursday, are higher than the estimates made earlier by the five analysts polled by Reuters. The analysts said they expected 2001 to bring sales of 215.1 million euros and a net profit of 27.44 million.
Schindelhauer said that based on preliminary figures, Aixtron had build its market leadership in 2000.
``We have increased our market share from 54 to 56 percent,'' he said, adding the market share of its largest rival, U.S. based Emcore grew from 27 to 28 percent. |
