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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (34277)	2/10/1998 7:01:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 61433

AMAT CC Gary -- I listened to the AMAT conference call and will post a few highlights that might impact Ascend: Significant orders in Korea were delayed, Taiwan is strong, North America is strong, $1.9B in new orders "encouraging." In logic and microprocessor strong demand for .25 vs. .35. 45% for the former and 42% the latter. Korea --- still in state of considering how to finance capital spending. Their livelihood depends on staying current and they will find the means. Japan --- close to fiscal end and until they make '98 projections, it's unknown what they'll do. Southeast Asia -- Malaysia --- pushed out of '98 Singapore -- still spending on foundry; migrating to .25 *Taiwan -- converting to foundry and logic Transition for technology. Must be ready by late '98 and early '99. Very positive. North America -- Pretty good, logic and mp likely up. Major accounts either flat or up. '98 will be slightly better than '97. Europe -- Stable and steady growth b/c of telecommunications systems and devices. Long term, remain strong. Short to intermediate slow down, with increased volatility. Growth of semis extremely strong. Wafer factory $40B by 2002. Negative BtoB near term, increasing positive as year progresses. Will be $12B company by early in century. Will have better feel for Japan after their fiscal year ends. Koreans will be back the minute they have cash. Demand for .25 will increase from 45% of business to 60%. Have factored out most of Japan in Q3. Planned on sustainable order rate. If higher, we can respond. No surplus in .25. If you're not prepared for new technology --- if you don't invest --- you won't play. Not knowing Applied Materials at all, I would say the guidance was cautiously optimistic. The CEO likened today's situation to a ski trip to the mountains. You hear a storm warning but you know there's perfect powder once you get there. They lowered Q2 Rev expectations to $1.15B to $1.2B, and earnings to .35 to .38. I have no idea how the market will respond. I don't own AMAT and listened to the call to get a feel for the overall global climate in technology. Regards, Pat