Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (139970)	7/23/2001 8:19:27 PM
From: COMMON_SENSE	Read Replies (1) \| Respond to of 186894

These numbers are Incredible The book to bill has showed a total deterioration and the sales must have slipped dramatically for all companies. It is steeper than anybody predicted.... It is obvious that nobody is booking much ahead and a lot of business must be spot sales. That spot buying is one explanation of the lower booking numbers. Firms must be only forward committing to about half what they intend to use and letting other firms carry inventory. If a company like AMD claims to be increasing CPU sales - they are doing it in the face of one of the steepest declines in history. The fact that Intel also says they are keeping up volume and sales is even more interesting. Intel has roughly declined about 25% in sales from December and AMD has lost at least 10%, but these slippages on the report tonight show declines in the area of about 40% - so it has to make a person wonder who is losing market share.... Any ideas?

To: Amy J who wrote (139970)	7/23/2001 9:46:00 PM
From: Mani1	Respond to of 186894

Amy re <<Why are bookings still half of shipments? >> Orders continue to be very weak, but it has stabilized. It only went down from $721 million to $714 million from April to May. Keep in mind that BTB is a 3 months rolling average not 1 month. Since there was a sharp drop in April, the past 2 BTB and the next one will be substantially below unity. Companies are still shipping based on orders received several months ago. Re <<Isn't that a steeper drop than expected? >> For the latest one, I don't think so. Again, it was only down a little month over month. We should see a BTB go higher for the next few months but it will probably take till the end of the year to get above 1. And even then, it probably will take many more months before the semi companies are again profitable. And who knows it might take years for them to get to profitability levels of 9 months ago. Mani