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.

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

To: Big Bucks who wrote (19541)	5/18/1998 4:23:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 70976

no DRAM profits no cap.exp: ---- Japan chip makers see short-term profit gains By Yuko Inoue TOKYO, May 18 (Reuters) - Embattled Japanese computer and chip makers have yet to see any signs of recovery on the horizon, although rationalisation and capital spending cuts will help to raise profits in the current business year, analysts say. They said the cloudy outlook for computer memory chip prices, notably for dynamic random access memory chips (DRAMs), raised concerns that the chip business could continue to dent earnings in the year that started on April 1. A drop in domestic personal computer (PC) and telecommunications equipment sales could also weigh on their earnings, they added. "There aren't many bright spots in their business," said Kiyohisa Ota, an analyst at Merrill Lynch Japan. Only the mainframe and server sector may help because of replacements needed due to the millennium problem, he said. Starting on Friday, major Japanese electronics makers, such as Fujitsu Ltd , Toshiba Corp Hitachi Ltd , Mitsubishi Electric Corp and NEC Corp will unveil their results for the business year that ended March 31. They will also announce projections for the 1998/99 year. All five makers expect their profits to have declined last business year on a steep fall in 16-megabit DRAM prices and widened losses in their consumer electronics businesses. The companies have been sharply revising down their 1997/98 profits estimates since earlier in the year. Mitsubishi Electric expects a group net loss for the first time in the post-war period. Some analysts said a quick recovery in the DRAM business was unlikely as the fall in 64-mega DRAM prices, the current main memory for computers, was gathering speed. "If the price decline continues at the current speed, Hitachi, Mitsubishi and Toshiba will not be able to reduce losses in their chip divisions this year," said Yoshiharu Izumi, an analyst at SBC Warburg Japan. Izumi expects the price of a 64-mega DRAM for volume users to fall to $7 by the end of this year from the current $11. But all makers, except Mitsubishi Electric, will enjoy higher profitability thanks to capital spending cuts and lower depreciation costs, said Naoki Sato, an analyst at HSBC Securities Japan Ltd. Alarmed by the chip losses, most makers slashed capital spending plans for semiconductor production lines for 1998/99. Hitachi in late April announced measures to accelerate depreciation of its chip memory lines by posting a 1997/98 special loss of 23.1 billion yen, which analysts said could help raise its chip profits in 1998/99. Analysts say they remain sceptical whether Microsoft Corp's launch of its Windows 98 operating software later this summer can lift PC sales in the sluggish Japanese market. Sato said PC sales could inch up this year, but added intense pricing pressure would cut into makers' profits. He said Toshiba will be able to post an operating profit of around 10 billion to 20 billion yen in its PC division, helped by liquidation of notebook PC stocks in the U.S. market. An expected increase in server sales will help NEC and particularly Fujitsu, analysts said. The following are group net profit estimates for 1998/99 by analysts, in billions of yen: NEC Fujitsu Hitachi Toshiba Mitsubishi Dresdner* 80 85 85 55 -40 Daiwa 45 85 55 47 -25 HSBC 73 80 44 13.5 -72 The estimates are as of April 7. 06:38 05-18-98 ---- Shane (no magic pot of gold exists)

To: Big Bucks who wrote (19541)	5/18/1998 5:17:00 PM
From: Lone Star	Respond to of 70976

Lam and Novellus ganging up on AMAT- i wondered how AMAT could be up when everything else is down! Seriously, you might say its about time and I wonder if it may lead to the rumored merger somewhere down the line.

To: Big Bucks who wrote (19541)	5/18/1998 6:43:00 PM
From: Gottfried	Read Replies (1) \| Respond to of 70976

BB and all, SJMN suscription now finally FREE... Mercury Center (http://www.mercurycenter.com), the online edition of the San Jose Mercury News, today announced that it will no longer charge a fee to subscribers. The announcement was made as the news service marked its fifth anniversary. In comments several weeks ago, a Center executive said traffic to the site had decreased recently and was a factor in the decision to make site access free. Mercury Center officials said they expect today's announcement to expand its audience, both in the U.S. and internationally. Center director Bob Ryan added there will be other announcements later this year which, he said, "will help reinforce our position worldwide as the online news source for Silicon Valley." GM