Katherin, Big Bucks and threaders, If I am correct in my recollection
I believe that AMAT was actively participating with ASML regarding their steppers. Is this a positive for the future sales with AMAT?
To what degree?
Following is the Reuters article which I read.
Paul
Posted at 10:14 p.m. PST Friday, February 12,
1999
ASM Litho Wins
Two Large Orders
BY PHILIP BLENKINSOP
AMSTERDAM (Reuters) - Dutch
semiconductor equipment maker ASM
Lithography NV Friday announced two large
orders, including a first from Motorola,
sending its shares to their highest level this
year.
ASML, the world's second largest maker of
scanners and steppers which print chip
circuitry onto silicon wafers, said its two
orders, from Samsung and Motorola, were
worth over 300 million guilders ($154
million).
Its shares, suspended at the opening in
Amsterdam, reached a high of 43.40 euros, up
9.5 percent. So far this year, they have risen
over 60 percent, far outstripping any other
AEX member.
Analysts said the Dutch firm's shares had
partly reacted on sentiment, but pointed out
that the size and timing of orders, particularly
with Samsung, was encouraging.
''On the Samsung side, there looks to have
been an acceleration in the last few weeks,''
said Lucien Albers van der Linden, analyst at
Rabo Securities.
ASML had already announced initial ties with
Motorola, as well as with Taiwan's Acer, last
month, but that deal too seems earlier than
some had forecast.
''As a new customer, it's an important play
and it looks like they are delivering in the first
half,'' Van der Linden said.
ASML has said it expects only a slow market
recovery from the second half of 1999 and
little improvement before compared with the
end of 1998.
Analysts suggest Friday's announced orders,
which are equivalent to 17 percent of ASML's
total turnover in 1998, support the company's
forecast of break-even in the first six months
and provide an early sign of a recovery in
memory chips.
However, according to some, ASML's
swollen share price will need to be backed by
further orders, particularly those for the second
half and subsequent years.
''You do need orders to run a business. These
seem to be in Q2 and Q3. We may up our
estimates, but it doesn't say too much about
2000 and 2001. ASML still needs big orders
for these years,'' said David van Hoytema,
analyst at ABN AMRO.
Philips Electronics holds a minority stake in
ASML. |
