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

To: Proud_Infidel who wrote (9828)	5/18/2004 7:43:04 PM
From: Proud_Infidel	Respond to of 25522

IC-equipment biz overheated in Q1 as slowdown looms By Mark LaPedus Silicon Strategies 05/18/2004, 7:25 PM ET SANTA CLARA, Calif.--The worldwide semiconductor-equipment book-to-bill ratio rose in April amid what was considered an "overheated" market for the first quarter of 2004, according to VLSI Research Inc. on Tuesday (May 18). The worldwide fab-tool book-to-bill ratio hit 1.11 for April, up 1.03 in March, according to VLSI Research. Worldwide fab capacity was 87 percent in April, down 88.5 percent in March, according to the Santa Clara-based research firm. Worldwide bookings were $4.01 billion in April, while billings were $3.60 billion. Worldwide bookings were $5.34 billion in March, while billings were $5.15 billion. VLSI Research believes the chip-equipment market was "overheated" in the first quarter, causing it to predict a slowdown in orders in Q2 and perhaps beyond. "Worldwide equipment revenues grew 24 percent to $11.9 billion in 1Q04," according to the report. "This remarkable growth came primarily from chip makers adding capacity, but was also partly driven by the end of the Japanese fiscal year, which usually brings a peak to their buying cycle." The 1Q04 growth comes in the heels of robust increases of 16 percent in 3Q03 and 14 percent in 4Q03. "Even with order activity slowing down, the industry will not need much more impetus to achieve a 56 percent growth for the year," according to the firm. "In fact, VLSI predicts that 2Q04 revenues will decline following the end of the Japanese fiscal year and buying cycle," the report said. "If this does not happen, watch out. It could be a repeat of 2000's '2 for 1 deal', when the industry got two years worth of growth in one."