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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: w0z who wrote (32131)8/19/1999 4:51:00 PM
From: Duker  Read Replies (2) | Respond to of 70976
 
Bill,

Remember: The backlog also get purged/scrubbed quarterly. In the last quarter, AMAT scrubbed some $49mm worth of backlog. As I recall, $9mm was related to currency adjustments and $40mm were orders that were either delayed (and, therefore, pushed beyond their 12 month backlog time horizon) or otherwise made 'bad.'

AMAT attributed the majority of the $40mm to 6 orders destined for China that were delayed ... and then there were the IPS's that customers shipped back ... oops, maybe I am making the last part up ... but, you get my point.

--Duker



To: w0z who wrote (32131)8/19/1999 5:48:00 PM
From: Ian@SI  Respond to of 70976
 
Bill,

You're probably right. An order is an order.

However, an order converted to a sale in the same quarter as received never makes it into a reported backlog.

Without the significant "above-estimate" earnings / revenues, AMAT would be sitting with a much healthier than expected backlog.
I suspect that cycle times to build and deliver equipment will permit much more "turns" business; thus the new model where AMAT is targeting 3 to 3 1/2 months backlog rather than almost 6.

Ian.



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