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

To: Cary Salsberg who wrote (10082)	6/2/2004 7:59:08 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Brooks CEO retires amid speculation about Applied ties Silicon Strategies 06/02/2004, 5:40 PM ET CHELMSFORD, Mass.--Amid speculation about its sudden ties with Applied Materials Inc., Brooks Automation Inc. Wednesday (June 2) announced that its chairman and chief executive, Robert Therrien, is retiring, effective Dec. 31. Therrien will transition the position of CEO to company president and chief operating officer Edward Grady, effective October 1. Therrien will remain as chairman and will serve as a consultant to the company following his retirement. Grady was named Brooks' president and chief operating officer in February 2003 and named a director in September 2003. "Bob Therrien is truly one of the industry's visionaries, and he has built Brooks into an industry leader," Grady said in a statement. "He has successfully guided Brooks through some of the most challenging times the industry has faced. I look forward to working closely with Bob in the coming months to continue building and delivering value to our customers, our shareholders and our employees." The announcement comes at an inflection point for the supplier of fab-automation gear. "Recent channel checks at Brooks Automation (BRKS) indicate that the company is not only at full manufacturing capacity, but that contacts there feel the strength should continue through the remainder of the year," said Vincent Valentine, managing director in the semiconductor equipment sector for investment banking firm Mitchell, Detwiler & Co. in Boston, in a report. "The atmospheric robot part of their business is particularly strong and is generally a bullish sign of strength in the overall semiconductor capital equipment market," Valentine said. "Lead times for BRKS equipment is at an all time high with deliveries extending out approximately 22 weeks in some cases. Sources indicate that the biggest risk at this point for BRKS may be supply chain constraints." Recently, Applied Materials Inc. and Brooks signed a deal under which Applied would provide service for select products from Brooks. The deal is fueling ongoing speculation about the two companies. "Additionally, our contacts close to the company indicate that Applied's recent purchase of BRKS' 200mm AMHS service contracts may represent a stepping stone toward a much larger splash into the fab automation space," Valentine said. "The story makes sense as AMHS represents one of the few areas in the equipment space in which AMAT does not yet participate and BRKS has been struggling in the space against Daifuku," he said. "We have a sense that this service contract sale may merely be a first step toward a potential acquisition of BRKS' entire AMHS business."