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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (5951)	10/9/2002 2:09:48 AM
From: The Ox	Respond to of 95521

2020insight.com Semiconductor Equipment. . . Lehman envisions a potential scenario for Applied Materials where Q4 revenues could come in lighter than expected due to order pushouts and cancellations. If this proves to be the case, firm would expect AMAT to preannounce rather than post weaker than expected results on its Nov 13 conference call. Lehman believes shares still look expensive at a price-to-sales multiple of 3.8x, a healthy premium to the overall sector. Lehman believes weakening order trends in the second half of the year and downward analyst revisions to 2003 numbers will put further price pressure on semiconductor equipment. Lehman feels most semi equipment companies will report results in line with their outlooks but expects order trends to come in weaker than expected, which will lead to a disappointing fourth-quarter outlook. The analyst thinks KLA-Tencor and Cymer are best positioned to weather the storm. KLA-Tencor fell 1.9 percent on Monday while Cymer relinquished 3.5 percent. Semiconductor. . .Digitimes.com reports that Samsung has been stuffing current inventory supply of die to module-making customers and has been selling DRAM modules on the spot market at cut-rate prices; move was reportedly prompted by Samsung's desire to be free of inventory by early next month so that it can bargain for higher contract prices. In addition, many DRAM makers are less than optimistic about the Q4 DRAM market, which may have also sent them scrambling to clear inventory. International Rectifier expects first-quarter revenue to come in at the midpoint of its outlook, at about $211 million, or up 25 percent from the same quarter a year ago. IRF said it did not see seasonal improvement in personal-computer related demand late in the quarter. Automotive, industrial, and defense/aerospace business improved sequentially. Advanced Micro Devices inked a research and development joint venture agreement with China Basic Education Software Company, Ltd. The new entity will be called the Beijing CBE AMD Information Technology Company, Ltd. aimed at addressing China's information technology education market. The venture will work on designs for millions of personal computers and servers in Chinese schools over the next 10 years.