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

To: Tony Viola who wrote (36417)	8/9/2000 4:32:56 PM
From: Proud_Infidel	Respond to of 70976

Did the call start yet? All I hear is music and it's after 4:30.

To: Tony Viola who wrote (36417)	8/9/2000 5:01:56 PM
From: pat mudge	Read Replies (3) \| Respond to of 70976

Rough notes so far: Applied Materials 3Q conference call, August 9, 2000 25% seq. growth, 83% y/y. EPS up 32% seq, 136% y/y 22% op inc. vs. 17% last year 3.69B backlog Business strong. Continued expansion in semi industry. New orders set records. Across all regions. 50.9% gms, operating margins 30%. R&D will exceed $1B this year. Cash 373m, rev. grew 25%, 3.75B cash level. 3Q new orders 3.2 B, 12% higher than Q2, 115% higher than last year. 3.69B backlog. First Q orders for 300mm. Earlier orders were for customer evaluation. Rev. on 300mm systems will not be recognized which is expected in first 2Qs of 2001. None in FY2000. 300% pvc (?) growth in 2000. New wafer inspection products gaining market share. Edge system continues to ramp. Interconnect modules --- record shippings. CMP cleaning product the fastest ramping ever in this division Thermal processing --- record results E-beam and laser products set records. Customers need 180nm production tools. .18 represented 72% Integrated device could not meet demand. Demand from bb telecom. . . Improving sign that Japanese desire to remain competitive. 55% of demand for foundaries for fables customers Growth of telecom in Europe. SEAsia reflected new foundry investments. Korea reflect capacity for DRAM. Capacity continues to improve. 13 new fabs, and 16 expansions. 16, and 15 next year. 17 will be 300mm. To 60K wafer starts per month in 2001. 18 customers over 50M. 8 over 100M. Cash and short term --- 3.75B in Q3. DSOs 72 days. $13B inventories, inven turn 3.17 times, 4.17 factory turns. State of industry: entering the most exciting period in history of semiconductors. Internet driving silicon consumption. Impact of new systems on industry: semi sales are at all-time highs. 155% flash growth, DRAM 110% growth, MP, DSP, ASICs over 50%, DSP over 90%, and ASICS flash and analog over 40%. Never been a period of time in industry where we’ve seen such high growth over such a wide spectrum. Need for capacity expansion continues. Some segments tight and on allocation. ASPs moving up, customers receiving higher levels of profitability, with further increases expected. Our customers are optimistic. We believe the current industry up-cycle will continue. Bookings this quarter --- (lists by segments) --- shortage of DRAM developing. Greater regional balance. Taiwan expected to show strong growth for FY. Japan nearly doubled their investments this quarter over last. Many of largest customers and I’m facing increasing level of optimism for year 2001. Taiwan I’ve spent time with top executives of foundaries. In one they told me “even with increasing 1.4M wafers per year for next year they’ll be short 1M per year capacity b/c they see strong demand in 2001. “ Korea, capacity shortages developing. Europe strong comm. --- growth leading to strong spending. Philips, Infineon and HP. Infineon working with partners to insure capacity. Philips expanding aggressively. In US semi mfgs --- also looking at increased spending. In Japan ---( lists products) --- expanding, with renewed sense of confidence --- should result in higher spending from top five companies for next year. Logic and systems on chips. We are also seeing bookings momentum for 300mm facilities. $8b in 2001. (?) We expect to have much larger share of this business in future. Each product unit assess opportunities and strategies over next years --- ongoing now --- indicate that next year will be strong in bookings and revenues across all product lines and regions. Future looking very bright. Healthy econ. Strong electronics growth. Increase in fab equip spending. Leading to continued up-cycle for industry.