Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gottfried who wrote (15988)	9/16/2005 10:20:04 PM
From: Proud_Infidel	Respond to of 25522

Applied CEO sees decline in capex Mark LaPedus EE Times (09/16/2005 7:07 PM EDT) SAN JOSE, Calif. — Semiconductor capital spending is expected to pick up later this year or beyond, but overall expenditures will remain in negative territory for 2005, according to an executive from Applied Materials Inc. The next wave of capital spending will be pushed out to late-2005 or early-2006 amid a cautious business environment for semiconductors, said Mike Splinter, president and chief executive of Applied Materials, in a press event on Friday (September 16). In total, capital spending is expected to fall 7 percent in 2005 over 2004, Splinter said. “We think that there is still a cautious environment in making capital investments,” he said. Piper Jaffray & Co. raised its semiconductor capital spending forecast for 2005, but the investment banking firm also sees flat expenditure growth in 2006. Piper Jaffray’s capital spending forecast is $39.5 billion in 2005, up $2.0 billion from its previous forecast of $37.6 billion. The figure is still down 10 percent over 2004. Worldwide capital spending is expected to be $39.8 billion in 2006, up slightly from $39.5 billion in 2005. Wall Street’s consensus is up 10-to-15 percent for 2006, according to the firm. One of the capital-spending disappointments is the silicon foundries, which have held back their spending patterns despite growing fab-utilization rates. “Foundries were slightly less than 10 percent of our orders, verses our average of 30-to-40 percent,” the Applied executive said. On the other hand, there is some positive news in the market, especially for demand in consumer and storage devices like NAND-based flash memories. “Semiconductors are growing better than expected,” he said. Indeed, it is not all doom-and-gloom in the market despite rising oil prices and the impact of Hurricane Katrina, he said. “The world economy has stayed relatively healthy. Confidence is relatively OK,” he added. Applied, the world's largest supplier of semiconductor equipment, met Wall Street’s expectations despite a down quarter in recent times. And the company’s outlook remains mixed amid ongoing sluggish orders from the silicon foundries and in China. Going forward, Applied projects that its sales will be flat-to-slightly down in the fourth fiscal quarter. It is projected to earn $0.13-to-$14 a share in the fourth fiscal quarter, with orders up 5-to-10 percent. The company blamed the rather flattish outlook on the lack of capital spending among the foundries and fabs in China (see Aug. 16 story).