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

To: Proud_Infidel who wrote (11759)	10/18/2004 6:52:57 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

IBM to boost wafer fab output amid strong Q3 results By Mark LaPedus Silicon Strategies 10/18/2004, 5:50 PM ET SAN JOSE, Calif. — Despite an apparent slowdown in the IC market, IBM Corp. plans to boost the wafer output within its 300-mm fab over the next quarter, according to the company on Monday (Oct. 18). IBM doubled the output within the 300-mm fab in the third quarter and has set plans to boost production by 40 percent in the fourth quarter, said Mark Loughridge, senior vice president and chief financial officer for the computer giant (Armonk, N.Y.) The company's 300-mm fab is located in East Fishkill, N.Y. Although IBM is seeing ongoing demand in the foundry business, the company is still reportedly struggling with its fab yeilds. For months, the unit has struggled with chip yields in the 300-mm fab, a 130- and 90-nm plant. Last week, Apple Computer Inc. reported stellar results despite availability problems with its 64-bit G5 processors, according to a report from the MacCentral Web site. Used in Apple's Mac-based computers, the 64-bit G5 processors are built on a foundry basis by IBM Corp.'s Microelectronics Group, according to analysts (see Oct. 13 story). Besides Apple, other foundry customers include Broadcom, Nvidia, Intersil, and Qualcomm. During a conference call on Monday, however, Loughridge indicated that the chip unit is showing some improvement. "300-mm yeilds continue to improve," he said. Meanwhile, IBM said revenues from continuing operations for the third quarter were $23.4 billion, up 9 percent compared with the third quarter of 2003 revenues of $21.5 billion and up 1 percent sequentially from $23.2 billion in the second quarter of this year. Third-quarter income from continuing operations was $1.80 billion, an increase of 1 percent compared with $1.79 billion a year ago. Third-quarter 2004 diluted earnings per common share of $1.06 from continuing operations as reported, compared with diluted earnings of $1.02 per share in the same period of 2003, an increase of 4 percent. Samuel Palmisano, IBM chairman and chief executive officer, was bullish about the results. "In what is normally a challenging quarter for the technology industry, IBM delivered one of our strongest third quarters in revenue and earnings growth in recent years," he said in a statement. "IBM has been gaining momentum throughout the year, and the strength of our integrated business model gives us confidence as we look toward 2005."