FOOD FOR THOUGHT
FROM WSJ THIS MORNING
But some analysts remain confident that U.S. companies won't lose
significant sales of chip equipment because of cheaper gear from
overseas companies, noting that the U.S. firms' products are among the
most sophisticated. Robert Maire, an analyst at Donaldson Lufkin &
Jenrette Securities, said he was contemplating upgrading the sector,
since many of the equipment companies have recently presented strong
earnings reports.
"Demand from all the chip-equipment companies continues to be positive,"
he said. "Basically, we're not changing our opinion."
One example was KLA, which Tuesday reported better-than-expected
earnings. The San Jose, Calif., company posted net income of $50
million, or 56 cents a share, for its fiscal first quarter, compared
with $34 million, or 40 cents a share, in the same period a year ago.
That figure exceeded the First Call consensus figure of 52 cents a
share. Revenue was $312 million, up from $261 million in the year-ago
quarter.
U.S. companies that do overseas business in dollars may also be
protected from the turmoil wracking Asian markets.
"We don't see any great effect from the Asian currency crisis," said
Robert Stern, an analyst at Merrill Lynch. "The semiconductor-equipment
companies transact in dollars, so they're not subject to the currency
pressures."
Mr. Stern said the firms' current weakness represented a good buying
opportunity. |
