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

To: MrGreenJeans who wrote (6316)	10/19/2002 8:25:10 PM
From: Return to Sender	Respond to of 95427

Semitool cuts 100 jobs, but sees positive 2003 By Mark LaPedus Semiconductor Business News (10/18/02 05:17 p.m. EST) siliconstrategies.com KALISPELL, Mont.--Semitool Inc., a supplier of wafer surface preparation and electrochemical deposition equipment for IC production, here has reduced its workforce by 10%, or just over 100 employees, according to officials from the company. The reductions, which took place this week, was in response to the downturn in the semiconductor and chip-equipment industries, confirmed Paul Siblerud, vice president of marketing for Semitool, based in Kalispell. “The market hasn't picked up as we had hoped,” Siblerud told SBN. Without a doubt, it's been a tough time for Semitool and other chip-equipment makers in the marketplace. In July, Semitool reported sales of $28.4 million for the third quarter, down 9.4% from $31.3 million for the second quarter of fiscal 2002 and down 53.6% from $61.2 million for the same quarter last year. It had a third quarter loss of $3.5 million, or minus $0.13 per share, sequentially better than the $4.1 million net loss, or minus $0.14 per share, in this fiscal year's second quarter. In the same quarter a year ago, the company's net income was $5.4 million, or $0.19 per diluted share. At present, however, there are some mixed signals in the market. “We see very little demand for capacity-driven equipment,” Siblerud said. On the other hand, the company is seeing strong interest for its tools in leading-edge applications, such as 300-mm, copper, and low-k, he said. In July, for example, Semitool announced it received a “multi-million dollar” order from Texas Instruments Inc. The systems include Semitool's leading-edge 300-mm Paragon tools for electroplating and the Spectrum 300 multi-wafer batch processing system, both of which will be used in chemical etching and stripping applications. Wafer-level packaging is another emerging area for the company. In July, an organization called the Semiconductor Equipment Consortium for Advanced Packaging (SECAP) announced plans to install a 300-mm line for wafer-level packaging at Unitive Inc.'s Taiwanese plant. Semitool is part of SECAP (see March 12 story ). Down the road, Semitool is seeing other positive signs, especially for 2003. “We are already seeing signs of strength,” he said. “In general, [2003] is going to be a positive year. The question is when. If I go with my gut feeling, it may be March-April before we see any impact.” From your previous post: >"I think the probability of a so-called double-dip recession is relatively low," Gary Stern, president of the Federal Reserve Bank of Minneapolis, said in a speech on Tuesday.< At least Mr. Stern admits there is a possibility of a second dip into recession. I do believe both our posts were completely relavent. If you can provide me with enough evidence of an impending business led recovery I'm 100% in favor of that happening. It's just so much of what you are asking me to accept is based on my own previously missplaced belief that the FED could help us avoid a bear market and a recession in the first place. RtS