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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Jack Kunkle who wrote (19324)	5/12/1998 6:10:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Some notes from the CC: exchange2000.com CC Playback #: 1-800-633-8284 Access #: 4190444

To: Jack Kunkle who wrote (19324)	5/12/1998 6:22:00 PM
From: David Aegis	Read Replies (2) \| Respond to of 70976

B2B was .87. Revenue guidance for FY3Q was $925 mm. Order guidance was $850mm-$1b. FY3Q EPS guidance was a range of $0.20-0.23. A positive comment was that almost all new chips designs are for .25 u chips, but there is a general lack of capacity to produce those designs (only 20-22% of global installed capacity is .25 u, mostly used to produce DRAMs). Management stressed several times that AMAT is better positioned than its competitors at .25 u. Another oft-repeated statement was that an economic recession could torpedo an industry-wide recovery. Cost control measures are being put into place. Layoff's could occur if things get worse, but management stated the company could remain profitable at almost any revenue run rate. Obviously, 1998 estimates will come down. Any longs in the stock for a near term upside surprise were no doubt disappointed. Any longs in the stock for the next upcycle (like me) don't care about near term earnings. I'd prefer a smoother cycle, but the bigger the bust, the bigger the boom. --David