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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (945)	5/18/2002 9:19:50 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

More upside surprises at Applied? One of the big surprises of the past week was delivered by Applied Materials Inc., which beat Wall Street's expectations by posting a 16% sequential increase in sales to $1.16 billion and a net income of $52 million in the company's fiscal Q2 period, ended April 28. The results prompted Applied chairman and CEO James Morgan to declare that he's beginning to see the first phase of a recovery in the semiconductor industry (see May 15 story). And fiscal Q3 looks promising for the Santa Clara, Calif.-based chip-equipment giant. In fact, orders are already flowing in from a number of chip makers. "In our view, July quarter orders [for Applied] could come from TSMC's 300-mm fabs (Fab 12 and 14), Micron's 300-mm pilot, TI's DMOS 6, UMC (Fab 12A), Intel fabs 11x, Powerchip phase II, and others," according to a report from Prudential Securities Inc. this week. Applied is especially benefiting from Taiwan Manufacturing Co. Ltd. (TSMC). The U.S. company reportedly received a $200 million order from TSMC (see April 8 story). But some believe that the order is bigger than previous thought. "We estimate about $700-to-$800 million in tool orders [from TSMC] could go to Applied Materials," according to the Prudential Securities report. "With about $150 million or so placed to date, there remains $550-to-$650 million in orders from TSMC alone, or on average of $200-to-$240 million per quarter," report added.--M.L.