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To: gladman who wrote (10494)	6/11/2001 11:22:44 AM
From: Tom Hua	Respond to of 19633

gladman, ANAD warns. Stock halted for CC. 11:12 ET Anadigics (ANAD) 18.52 halted: -- Update -- Company issues press release ahead of conference call. Announces 10% reduction in workforce and projects Q2 basic loss of $0.44; loss using historical tax rates is estimated at $0.28... Company says Q2 revenues remain on track, but that low fab utilization and start-up costs will result of 10% gross margin. Regards, Tom

To: gladman who wrote (10494)	6/12/2001 8:15:12 AM
From: Tom Hua	Read Replies (1) \| Respond to of 19633

gladman, your list is getting longer and longer, notice the 35-45% sequential decline seems to be the norm for semi companies. 07:59 ET Exar Corp (EXAR) 23.02: Chip maker lowers Q1 outlook to $0.02-$0.04 (consensus $0.07). Company expects revenues to decline 35%-45% on a sequential basis. "Visibility in the market continues to be very limited as customers work through inventory and demand issues." Regards, Tom

To: gladman who wrote (10494)	6/12/2001 8:21:11 AM
From: stomper	Respond to of 19633

ASE Cuts Second-Quarter Forecasts on Weaker Demand (Update1) 2001-06-12 06:45 (New York) ASE Cuts Second-Quarter Forecasts on Weaker Demand (Update1) (Adds ASE Test forecast from ninth paragraph.) Taipei, Taiwan, June 12 (Bloomberg) -- Advanced Semiconductor Engineering Inc., the world's No. 2 packager of microchips, cut its forecast for second-quarter sales, citing weaker-than expected demand from customers in April and May. The company, whose largest customers include Motorola Inc. and LSI Logic Corp., expects sales in the quarter to fall 20 to 25 percent from the first quarter. Two months ago, ASE said it expected sales to fall 15 percent from the first quarter. ASE's first-quarter profit dropped 80 percent from the year- earlier period as rising competition forced it to slash prices. It's already reducing its capital spending and cutting pay for top- level managers to weather slowing demand as well. ``Given the uncertain industry conditions, visibility into the rest of the year remains limited,'' the company said in a statement distributed through PRNewswire. Still, ASE ``remains cautiously optimistic on its prospects in the second half.'' Chipmakers worldwide are being affected by a slowdown in demand from makers of consumer electronics such as mobile phones and personal computers. Global semiconductor sales are expected to fall 14 percent to $176.8 billion this year, according to the World Semiconductor Trade Statistics industry group. Last year, the trade group had expected 2001 sales to rise 20 percent. Hitting the Bottom ASE specializes in chip packaging and testing, two of the final steps in chipmaking. Many of the world's largest chipmakers, such as Motorola and International Business Machines Corp. subcontracted these operations to companies such as ASE and larger rival Amkor Technology Inc. of the U.S. to cut their own costs. Taiwan-based ASE said it expects second-quarter gross margin -- the percentage of sales remaining after production costs are subtracted -- to be ``slightly better'' than 10 percent. Operating margin in the quarter will be ``in the negative low single digit percentage range,'' the company said. Separately, ASE Test Ltd., Asia's largest independent chip tester and a unit of ASE, said it would have a loss in the second quarter of between $12 million and $14 million. The company also cut its forecast for second-quarter sales, which it now sees falling between 30 and 35 percent from the first quarter. ASE Test, which trades on Nasdaq, reported revenue in May fell 32 percent from the same month last year to $22.3 million. Still, the company said the worst may soon be over. It ``expects its business to reach a bottom in the current quarter and is cautiously optimistic that its business may start to show sequential growth in the third quarter,'' ASE Test said in a statement released through PRNewswire. Chipmakers such as Motorola, which originally tested their own chips, have outsourced this last step in the chipmaking process to other companies as a cost-cutting measure. The testing market is worth about $10 billion per year, ASE Test has said. --Jad Mouawad in the Paris newsroom (331) 5365 5076, or jmouawad@bloomberg.net/msp