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

To: Proud_Infidel who wrote (1702)	7/22/2002 7:43:59 PM
From: Proud_Infidel	Respond to of 25522

IC market in 'first phase' of recovery, says Applied CEO We already knew that there were high utilization rates at the smaller geometries(.13u), but this is the first I recall anyone saying they were seeing capacity buys. And this is significant not just for the fact that he said it, but in this environment, he must be able to back it up, even assuming the market worsens further. Brian ************************** IC market in 'first phase' of recovery, says Applied CEO By Mark LaPedus Semiconductor Business News (07/22/02 07:15 p.m. EST) SAN FRANCISCO -- The semiconductor industry remains in the early stages of a gradual recovery, but there are signs of the first “capacity buys” for select tools in the marketplace, according to the top executive of Applied Materials Inc. James Morgan, chairman and CEO for Applied Materials, also remains upbeat about the future of the IC industry in spite of the current semiconductor downturn and economic woes in the world. “We think there is a great, long-term future in the [semiconductor] industry,” Morgan declared. “The first phase of a recovery is beginning. Inventories are down. There is also a shortage of capacity at 0.13-micron,”** Morgan said during a press event at the Semicon West trade show here today. Morgan defined the “first phase” of an IC recovery, when capital spending is up and fabs are running at 90% utilization. “Phase one is when chip makers are moving towards tighter geometries,” he said. There are also signs of what he called the “second phase” of an IC recovery, that is, when IT spending increases and chip makers begin to make “capacity buys” instead of the usual “technology buys” for tools in the marketplace. IT spending has been “dormant,” but there are some “capacity buys,” especially for 300-mm tools at the 130-nm node, he said. Capacity buys remain on a “customer by customer basis,” he said. But in a brief interview with SBN, Morgan did say that the vast majority of today's tool procurements are “technology buys,” that is, 300-mm tools based on copper-interconnects, low-k, and other leading-edge technologies. The Applied CEO also remains bullish about China and its exploding semiconductor market. “What's different is that [China] is reaching critical mass,” he said.

To: Proud_Infidel who wrote (1702)	7/22/2002 7:45:33 PM
From: Proud_Infidel	Respond to of 25522

Texas Instruments reports profit on higher sales EBN (07/22/02 05:28 p.m. EST) Texas Instruments Inc. today reported profits of $95 million for the second quarter, erasing some of the year-ago quarterly loss on higher sales and plant utilization as well as lower operating costs. The company's June-quarter revenue rose to $2.16 billion from $2 billion in the year-ago comparable quarter and $1.83 billion in the quarter ended March 31. In the second quarter of 2001, TI reported a loss of $197 million. "TI delivered good revenue and earnings growth in the second quarter," said Tom Engibous, TI's chairman, president and chief executive, in a statement. "In the second half of 2002, the end demand for our customers will be a more important growth factor." TI's results benefited from higher-than-expected semiconductor sales, which rose 6% from the second quarter of 2001 and 16% from the first quarter of 2002. Third quarter semiconductor sales may not rise as strongly, however. The Dallas-based company said it expects company-wide sales for the September quarter to rise 5% from the immediately preceding quarter while chip sales are seen climbing 4% sequentially. In the just ended quarter, TI's analog sales rose 16%, DSP 8% and high-performance analog 25%. Orders also rose strongly in the second quarter, climbing 20% from the previous quarter and 34% from the year-ago quarter, to $2.3 billion. Semiconductor orders also improved to $1.9 billion, up 42% from June 2001 and 22% from the March quarter. TI said higher plant utilization drove up its gross margins to 39.6%, from 25.2% in June 2001. The company's selling, general and administrative expenses fell as a percentage of sales to 13.7% from 19.6% in the year-ago quarter, giving it operating income of $155 million vs. an operating loss of $298 million in the June 2001 quarter.