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

To: Proud_Infidel who wrote (1557)	7/17/2002 8:07:27 AM
From: Proud_Infidel	Respond to of 25522

ASML shares soar as outlook overshadows H1 loss By Jana Sanchez (Adds news conference, analysts, details, fresh share price) VELDHOVEN, Netherlands, July 17 (Reuters) - Shares in Dutch chip equipment maker ASML Holding jumped more than nine percent on Wednesday as investors cheered an increase in orders and an upbeat forecast, despite a wider first-half net loss. ASML, the world's No. 2 maker of machines that map out semiconductor circuitry on silicon wafers, said its order backlog grew to 160 lithography units and it expected to ship about 100 in the second half, up from previous expectations of 70 to 90. Chief Executive Doug Dunn said ASML and the industry were showing some recovery after suffering through the worst-ever slump in the highly cyclical semiconductor industry that it supplies. "After five quarters of dismal news, we can say for ASML the market has now turned around," Dunn told a news conference. Chief Financial Officer Peter Wennink told reporters the company's net earnings should reach break-even in the second half. That was after ASML posted a first-half net loss of 98 million euros, wider than analysts' expectations of a 53 million loss and the year-ago first-half loss of 96 million. Its revenues also missed forecasts, coming in at 823 million euros as ASML sold 78 machines, including five refurbished. "The overall revenue numbers are disappointing for the first half. Although the lithography shipments were in line, the track and thermal revenues are much lower than expectations," said Uche Orji, an analyst at JP Morgan. "But the lithography backlog is fantastic," he added. SURPRISE AFTER INTEL ASML shares were up 8.6 percent to 15.40 euros by 0935 GMT, well outperforming the pan-European Dow Jones STOXX Technology index (Zurich:^SX8P - News), which was up 2.9 percent. But the stock is still down 20 percent this year. ASML trails only Japan's Nikon Corp (Tokyo:7731.T - News) in the production of scanners and steppers that companies such as Intel (NasdaqNM:INTC - News), TSMC (Taiwan:2330.TW - News; NYSE:TSM - News) and Samsung (KSE:00830.KS - News) use to make semiconductors. Its positive outlook surprised some investors after Intel, the world's biggest chip maker, on Tuesday revealed it was further scaling down its capital expenditures this year and would cut five percent of its workforce. But analysts and ASML said the latest Intel cuts would not have any significant effects on the Dutch company. ASML said the average price for machines on order was about 9.8 million euros. That compared with an average of 8.58 million for the lithography systems shipped in the first six months and 7.6 million for scanners and steppers in the second half of last year. Its latest machines, which process 300-millimetre wafers, sell for around 17 million euros, while the oldest machines ASML still ships sell for as little as 3.5 million euros. That means that with increasing shipments of new equipment, its average selling price rises. ASML defines its backlog as the machines ordered for delivery within the next 12 months. Most of the machines require at least six months lead time, so the backlog is a good indication of sales in the following half-year. Some orders in the backlog are cancelled or postponed during downturns. The tiny track and thermal unit, which ASML acquired last year when it bought Silicon Valley Group, accounted for 77 million euros of ASML's loss but only 47 million euros of its sales. Analysts said poor results at the unit, which coats the silicon wafer before the circuitry image is imprinted, should encourage ASML to consider getting rid of the recently acquired division. "They'd better sell track and thermal quickly," one analyst said. "But it's not going to be easy, because they have no economy of scale. They are competing with the biggest players in that market -- Applied Materials (NasdaqNM:AMAT - News) and Tokyo Electron (Tokyo:8035.T - News)." Dunn said his company has no plans to sell and instead might consider small acquisitions to beef it up, adding that the division should break even by the fourth quarter.