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

To: Cary Salsberg who wrote (63032)	4/23/2002 2:59:49 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 70976

ALTR CC and (my comments): 4/22/02 1Q02 EPS 0.05 (beat expectations), up QOQ rev. up 6% QOQ gross margins 60% (only down 6% since 3Q00; a spectacular result, given that, from 3Q00 till now, sales have declined from 395M to 172M; the benefit of being fabless) cash+eq. up, to 900M Overall, inventory drawdowns in their customer base seems to have ended, but inventory restocking is still very weak (at inflection point now, apparently). Telecom was singled out as the weakest sector, inventory drawdowns still going on there. Wireless the best area within the overall weak telecom segment. Guidance: 2Q02: continuing gross margins at about 60% sales growth QOQ of "mid-single digits" shares, diluted: 397M, down from 419M in 3Q00 (nice to see that number going in the right direction, unlike so many other techs) Expect LT CAGR 25-30% in PLDs (On all the critical measurements of their business, it seems clear to me, we are now right at, or just past, the turning point. Sales, earnings, gross margins, inventory drawdowns in their customer base, everything says, "it's up from here on out". I am very encouraged. Began buying at 21 today, will buy on every 1 point further decline, as low as we go. The only thing worrying me is the valuation: 21/$0.46 EPS in 2003 = 46 PE. This current selloff is a buying opportunity, possibly the last one.)