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

To: StanX Long who wrote (64323)	6/12/2002 1:07:56 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Samsung says outlook on track By Eric Auchard Wednesday June 12, 8:52 AM sg.biz.yahoo.com NEW YORK (Reuters) - Korea's Samsung Electronics Co. Ltd. said its second-quarter financial outlook remains on track, as an unexpected two-month plunge in memory chip prices has been offset by stronger sales of other products, officials said on Tuesday. Samsung IR officials attending the Bear Stearns Technology conference told fund managers that they see the average selling price (ASP) for memory chips falling below first quarter levels, but that the increasingly diversified company can shrug this off. ADVERTISEMENT "Overall ASPs will be slightly weaker than Q1," Youngsoo Cha, Samsung's vice president of investor relations, said in a presentation to Wall Street money managers, referring to contract prices for Dynamic Random Access Memory (DRAM) chips. He said that the company was pulling back on its prediction for when global DRAM demand would reach equilibrium with the current flood of supply. It now sees the market stabilising in the fourth quarter instead of the third quarter. Samsung, the world's leading maker of DRAM memory chips, made the move as its contract prices had fallen to the $4 level in May, and have fallen further in June, to $3 and below in some cases. The pricing collapse follows soft computer demand this spring and the failed attempt to consolidate the DRAM industry after the breakdown of the Micron-Hynix merger, which could have tightened supply and boosted prices. "Overall, second quarter operating profit will be similar to the first-quarter's -- slightly higher or slightly lower," Cha told Reuters, summarising the impact of various negatives and positive trends he described in the company's business. Bright spots include semiconductor chips used in colour screen displays, so-called TFT-LCDs that Samsung builds for its line of mobile phones and sells to other equipment makers. He also pointed to strength in so-called "system-on-a-chip" devices used in displays, smart cards and other electronics.