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

To: robert b furman who wrote (11046)	7/30/2004 8:22:20 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

UPDATE - Tokyo Electron Q1 back in black, ups FY forecast Friday July 30, 6:23 am ET By Nathan Layne and Sachi Izumi (Adds company comments) TOKYO, July 30 (Reuters) - Chip equipment giant Tokyo Electron Ltd. (Tokyo:8035.T - News) said on Friday it swung back into the black in the latest quarter, reflecting brisk demand for semiconductors used in digital electronics, and it raised its full-year outlook. The world's second-largest maker of chip equipment after Applied Materials Inc. (NasdaqNM:AMAT - News) said group net profit totalled 19.8 billion yen ($176.6 million) in the three months to June 30, against a 10.4 billion yen loss in the same quarter a year ago. Tokyo Electron, one of Japan's most actively traded technology stocks, raised its forecast for the full year to March 2005 to a net profit of 67 billion yen from its April estimate of 52 billion yen. The company said its earnings benefited from strong sales in Taiwain, which it considers a key growth area. It raised its full-year forecast for sales of chip equipment in Taiwan to 152 billion yen from 120 billion yen. The new forecast would represent a 52 percent surge from the 100 billion yen worth sold in the previous business year ended March 31. "We'd like to keep our eyes on Taiwan as sales there have been growing rapidly," Yukio Saeki, accounting department director, said at a press conference. "And we expect sales will continue to be strong (there) later in the year as well." A recovery in the PC market as well as robust demand for chips used in digital electronics and photo-snapping mobile phones have spurred chip makers like Taiwan Semiconductor Manufacturing Co. (Taiwan:2330.TW - News), the world's top contract chip maker, and South Korea's Samsung Electronics Co. Ltd. (KSE:005930.KS - News) to boost capital spending. Earlier this month, Gartner Inc. raised its 2004 semiconductor capital equipment spending forecast to $37.3 billion, up 63.5 percent from last year. In April, the research firm had forecast 2004 spending of $33.7 billion, up about 48 percent. The buoyant industry conditions were reflected in an earnings report earlier this week by chip testing equipment maker Advantest Corp. (Tokyo:6857.T - News), which posted a surge in quarterly profit and raised its profit outlook for the full year. North American rivals have also unveiled strong results. Novellus Systems Inc. (NasdaqNM:NVLS - News) reported a fivefold rise in quarterly profit. Net profit at Lam Research Corp. (NasdaqNM:LRCX - News) also surged in the quarter to end-June. Tokyo Electron said earlier this month that orders for its equipment to make chips and liquid crystal displays surged 124 percent in the April-June quarter from a year ago due to demand for chips for digital home electronics. Even so, Tokyo Electron and other chip equipment stocks have been under pressure over the past few months amid investor concerns that orders for equipment had peaked or would peak soon. In a move to lure investors, Tokyo Electron also said it would buy back up to 500,000 of its own shares, or up to 3.3 billion yen worth. The maximum amount is equivalent to 0.27 percent of its outstanding shares. The purchase period will be from Aug. 2 to Sept. 21. Tokyo Electron's stock fell 12 percent in the April-June quarter, underperforming a 1.6 percent decline in the electrical machinery index (^IELEC.T - News). Prior to the announcement, the stock ended up 2.25 percent at 5,450 yen, against a 2.2 percent rise in the sector index.