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 : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (1240)	10/22/2001 8:21:12 PM
From: Return to Sender	Respond to of 95400

Chip equipment orders, bookings seen dipping in September NEW YORK, Oct 22 (Reuters) - Orders and shipments of microchip-making equipment likely fell in September, analysts said, with fallout from the Sept. 11 attacks adding to an overall slump in technology spending. The market will be watching the semiconductor equipment industry on Tuesday, when the leading trade group, the Semiconductor Equipment and Materials International (SEMI), is to release its monthly report card. But the main statistic on the health of the industry -- the so-called book-to-bill ratio of new orders to shipments of old orders -- could be misleadingly high. Instead of signifying a boost in new orders, the ratio may rise if shipments tumbled faster than bookings of new orders in September. ``We saw bookings collapse six to eight months ago, so that's translating into weaker shipments as we speak today,'' said Mark FitzGerald, an analyst with Banc of America Securities. FitzGerald said he expects a ratio of 0.65, up from 0.61 in August. Semiconductor equipment makers, whose devices produce and test the chips that run computers and other electronics, had seen their business tumble this year, as chip makers cut back capital spending by an estimated 35 percent. The Sept. 11 attacks compounded the troubles, as many chip makers delayed capital spending plans in order to measure the impact of the attacks on their respective businesses. September -- generally a big month in terms of spending on chip equipment -- probably suffered as a result. The results of the attacks can be seen in the quarterly earnings statements of two equipment makers, Novellus Systems Inc. (NasdaqNM:NVLS - news) and Lam Research Corp. (NasdaqNM:LRCX - news). Novellus said orders in the quarter ended Sept. 29 were valued at $124 million, below the company's worst-case estimate and well below the $160 million it had forecast at the end of August. Lam Research said new orders dropped 25 percent, with a 46 percent decline in North America. ``Investors should recognize that the improved ratio does not indicate that demand for capital equipment is improving, as both orders and shipments are at very weak levels and declining,'' said Byron Walker, an analyst with UBS Warburg, in a research note. Walker said he expects the book-to-bill ratio to be in a range of 0.65 to 0.75.

To: Donald Wennerstrom who wrote (1240)	10/23/2001 8:25:46 PM
From: Return to Sender	Read Replies (2) \| Respond to of 95400

The Book-to-Bill is out... Ouch! semi.org!OpenDocument North American Semiconductor Equipment Industry Posts September 2001 Book-to-Bill Ratio of 0.65 SAN JOSE, Calif., October 23, 2001 -- The North American-based manufacturers of semiconductor equipment posted $644 million in orders in September 2001 and a book-to-bill ratio of 0.65, according to the September 2001 Express Report published today by Semiconductor Equipment and Materials International (SEMI). A book-to-bill of 0.65 means that $65 worth of new orders were received for every $100 of product shipped for the month. The three-month average of worldwide bookings in September 2001 was $644 million. The bookings figure is 11 percent below the revised August 2001 level of $724 million and 78 percent below the $2.89 billion in orders posted in September 2000. The three-month average of worldwide shipments in September 2001 was $993 million. The shipments figure is 13 percent below the revised August 2001 level of $1.15 billion and is 60 percent below the September 2000 shipments level of $2.48 billion. "As expected, recent global events have exacerbated the already poor forward visibility for high-tech industries as consumer confidence remains weak and businesses hold off on spending," said Stanley Myers, president and CEO of SEMI. "Industry analysts have been fairly unified in pushing out the timing of recovery for the semiconductor and capital equipment industries; it is still too early to determine the long-term fiscal effects of ongoing geo-political events." The SEMI book-to-bill is a ratio of three-month moving average bookings to three-month moving average shipments for the North American semiconductor equipment industry. Shipments and bookings figures are in millions of U.S. dollars.