PALO ALTO, Calif. -(Dow Jones)- The book-to-bill ratio for North
America's semiconductor-equipment industry rose to 0.80 in May,
according to a report issued Tuesday.
May's results appeared to meet Wall Street's expectations, but
analysts said continued weakness in the semiconductor equipment industry
was evident.
May's book-to-bill ratio of 0.80 means $80 in orders were received
for each $100 worth of products shipped. The industry posted a revised
book-to-bill ratio of 0.77 for April, the Semiconductor Equipment and
Materials International trade group said.
For May, shipments were $1.36 billion, up 18% from May 1997 and about
even with April 1998 shipments. Bookings, or new orders, were $1.09
billion, which were up 4% from April and 14% below the May 1997 level.
"The recent decline in orders appears to have leveled off," said Dick
Greene, principal analyst at Semiconductor Equipment and Materials
International.
Jay Deahna, an analyst at Morgan Stanley Dean Witter, had expected
the book-to-bill to be between 0.82 and 0.86.
"While a near-term bottom appears to be forming, we believe equipment
stocks will likely have a hard time generating a sustained recovery as
preannouncement season and the early part of the earnings seasons
unfolds," he said in a research report.
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