Not sure if that is related to this......
Applied, KLA, Lam, Novellus to meet Q3 forecasts--barely
By Mark LaPedus
Silicon Strategies
10/08/2003, 7:40 PM ET
NEW YORK -- It's earnings season again, but don't expect too many miracles in the slumping semiconductor equipment and materials market.
Leading suppliers of semiconductor equipment and materials are expected to report their financial results over the next few weeks. Based on the early predications, many vendors will meet their 3Q forecasts--by a nose, according to a report issued this week from UBS Securities LLC.
Applied, KLA-Tencor, and Lam are expected to meet their Q3 forecasts, while ASMI and Novellus will make it--barely. Materials suppliers MEMC and Photronics are on track.
It's a mixed bag in the process-equipment side of the business. Applied Materials Inc., the bellwether in the industry, is expected to report its fourth-quarter and year-end results in November. The chip-equipment giant is expected to report $1.117 billion in sales for its current quarter, up 2 percent from the previous quarter but down 23 percent from the like period a year ago, according to UBS. It is expected earn $0.05 per share in the period, compared to $0.05 in the previous period and $0.09 a year ago, according to UBS.
Applied is also expected to meet its bookings forecast of $1.2 billion in the quarter, up 10 percent from the previous quarter, according to UBS. "We believe the company will make its (quarterly forecast)," said Byron Walker, an analyst at UBS, noting that Applied is set to garner orders from Taiwan Semiconductor Manufacturing Co. Ltd. in the Q4 of 2003 or Q1 of 2004.
Applied's rival, Novellus Systems Inc., is also expected to meet its forecast, but it's going to be a "squeaker," Walker said. Its sales are projected to hit $220 million in Q3, down 8 percent from Q2 of 2003 and down 5 percent from the like period a year ago. It will report breakeven results, compared to $0.05 in Q2 and $0.11 a year ago.
Hurting Novellus is the company's chemical mechanical polishing (CMP) tool unit, which has been a drain on resources, according to Walker.
Lam Research Corp. is also expected to meet its forecast, as the chip-equipment maker is projected to hit $186 million in sales for Q3, flat from Q2 and down 6 percent year-over-year. It is expected to earn $0.03 a share in the period, compared to $0.02 in both Q2 of 2003 and Q3 in the like period a year ago, according to UBS.
The company is benefiting from orders in China and Japan--at the expense of Tokyo Electron Ltd., according to the Walker.
Hit hard by the U.S. dollar/Euro exchange rate and sluggish 300-mm orders, ASM International N.V. is expected to report $135 million Euros in sales for the quarter, down 12 percent from the previous quarter and down 4 percent from the like period a year ago, according to UBS. It is expected lose $0.17 Euros per share in the period, compared to minus $0.14 in the previous period and minus $0.09 a year ago, according to UBS.
On the metrology side, KLA-Tencor Corp. continues to soar. It is expected to report $320 million in sales for the quarter, up 4 percent from the previous quarter but down 15 percent from the like period a year ago, according to UBS. It is expected earn $0.17 per share in the period, compared to $0.15 in the previous period and $0.23 a year ago, according to UBS.
"We expect the company to meet or beat its consensus," Walker said. "We consider this a very good performance, given that KLA-Tencor's September quarter is historically a down quarter."
Meanwhile, the materials market is looking better. Silicon wafer maker MEMC Electronic Materials Inc. is expected report sales of $196 million in the quarter, up 2 percent from the previous quarter and 3 percent a year ago. It is expected to earn $0.12 a share in the period, verses $0.13 in Q2 and minus $0.20 a year go.
Photronics Inc., which is not expected to report in December, is on target. The supplier of photomasks is expected to report sales of $95 million in the quarter, up 4 percent from the last quarter and 5 percent year-over-year. It is also expected to earn $0.12 a share, compared to $0.07 in the last quarter and minus $0.06 a year ago. |
