From AMAT report:
<<New orders of $608 million for the third fiscal quarter of
1998 decreased significantly from $1.24 billion for the third
fiscal quarter of 1997 and from $1.03 billion for the second
fiscal quarter of 1998. Geographically, North America new
orders for the third fiscal quarter of 1998 were 45 percent
of the Company's total new orders, Europe 11 percent,
Japan 18 percent, Korea 5 percent, Taiwan 20 percent and
Southeast Asia and China 1 percent. Backlog at the end of
the third fiscal quarter of 1998 decreased to $1 billion, from
$1.41 billion at the end of the second fiscal quarter of 1998.
"The semiconductor industry downturn continued to deepen
during our third fiscal quarter because of poor economic
conditions in Asia, industry overcapacity, and weaker than
expected PC sales, compounded by a movement to lower
priced PCs," said James C. Morgan, chairman and chief
executive officer. "The sharp decline in new orders and net
sales was broad-based, as customers in all regions reacted
to further business difficulties by delaying equipment
deliveries and investments in capacity and strategic
programs. At this time, we are unable to predict how long
this cycle will last, and are therefore assessing the
appropriate level of infrastructure necessary to support a
lower business volume, while assuring our industry
leadership position." >>
Now, what is the reason to buy AMAT at these prices? immediate turnaround? Booming PC market? Worldwide boom? Bottom of the cycle? All bad news is in? Greater fools? Why? Why? Why?
-MMV |
