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

To: Proud_Infidel who wrote (3233)	9/25/2002 8:18:24 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

ASMLshares up on repeated H2 outlook Wednesday September 25, 7:41 am ET By Jana Sanchez (Adds company and analyst comments, background) AMSTERDAM, Sept 25 (Reuters) - Dutch semiconductor equipment maker ASML Holding (NasdaqNM:ASML - News) on Wednesday repeated its guidance for second-half 2002, boosting its shares as concerns faded that it would miss its targets amid a stubborn chip sector slump. Although it acknowledged that some orders had been cancelled or changed as the equipment sector became more volatile, ASML held its forecast of shipping about 100 lithography units in the second half of the year. Maintaining guidance in an uncertain market instilled confidence in investors, analysts and traders said. "Despite obvious declines in the semiconductor equipment market, ASML still has a number of customers that are buying leading-edge technology systems in preparation for an upturn in advanced chip demand," ASML said in a statement. ASML is the world's second-largest maker of scanners and steppers, machines which map out semiconductor circuitry on silicon wafers. It ranks behind Japan's Nikon Corp (Tokyo:7731.T - News). Despite low demand for chips, chipmakers can save money and sell more powerful chips by squeezing more transistors onto one silicon wafer using the latest lithography equipment, which print with wavelengths as small as 0.11 nanometre. ASML also said it would ship a minimum of 60 units in the first half of 2003 based on its order backlog. Lithography machines sell for about 10 million euros each. ASML's shares rallied, adding 10.4 percent to 6.18 euros by 1040 GMT in heavy volume. "The outlook is good, and although it's just a reiteration, in this climate you cannot hear it enough that a company is sticking to its guidance -- especially in this sector," said Florian van Laar, asset manager at Eureffect brokerage. STABILITY DESPITE SECTOR VOLATILITY Much of the concern about ASML's targets came after many ASML customers including its largest, Taiwan Semiconductor Manufacturing Corp (TSMC) (Taiwan:2330.TW - News), slashed their capital expenditure budgets due to falling demand. Many chipmakers had expected demand to recover in the second half of 2002, but it has not happened. The ASML statement was issued ahead of an analysts' meeting that begins on Thursday, where many analysts expect ASML to paint a more sombre picture for this year and next. Ahead of that meeting, major banks including Deutsche Bank, Merrill Lynch and Goldman Sachs cut ASML estimates or ratings. ASML said it was too early to give a 2003 forecast, but said it would ship at least 60 units in the first half. "With a 12-month backlog of 160 units as of June, if we ship 100 in the second half (2002), then we expect to ship 60 units in first-half 2003," ASML spokesman Tom McGuire told Reuters. McGuire later clarified that the 60-unit estimate was a minimum level. Analysts said ASML was likely to ship far more than 60 units in the first half, unless 2003 proved to be a deeper slump than late 2001/early 2002, which has been called the worst slump ever in the history of the semiconductor industry. "We have been out telling our clients to buy ASML shares this morning," said Uche Orji, an analyst at JP Morgan in London. Orji said the reiteration of the second-half guidance underscored the share's cheap valuation, especially as ASML continued to steal market share from competitors with its latest technologies. "When we have a recovery, ASML is set to profit from its higher market share," Orji said.