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

To: Gottfried who wrote (6898)	11/14/2002 12:08:35 PM
From: robert b furman	Respond to of 95639

HiG, From best I can garner,these guys are all on a amaintenance buildout. They've had manditory time off,payroll cuts,and job reductions. So some backlog is always being built - probably the most likely to ship first.Even at that they carry alost complete machines as Work In Process. Building it faster probably would result in pushouts or cancelations and at least a huge investment in WIP - not good in any alternative. Much better to park liquidity in cash and short term investments to offset losses to best degree possible. Many of these companies do do research that would provide future orders if they build a machine that meets future specs. The future specs always design in some process change that results in production efficiencies. R&D done effectively satisfies the next wave of future machines and thusly the next wave of orders. At the toip of the cycle - very littlr R&D goes on as production of new generation equipment at a fast rate is the key emphasis. Next generation acceptance and technology upgrades is what we need to see now. Those that win will survive for at least the next cycle. Bob

To: Gottfried who wrote (6898)	11/14/2002 12:41:18 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 95639

RE: "...why can't Applied use some of the backlog to bolster this quarter's revenue?" "Backlog" is probably orders for delivery during the next 12 months. (SVGI did not record bookings or add to backlog when orders were for delivery beyond 12 months.) These are subject to pushouts, pullins, and cancellations at the customer's request. The schedule of delivery is controlled by the customer and AMAT can't manipulated it to improve the current quarter. Companies have manipulated the schedule by offering financial incentives to the customer, but AMAT is smarter than that.