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

To: Ian@SI who wrote (22850)	8/11/1998 8:51:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 70976

Ian, Judging from how far it has rallied off its lows, I'd say there has been a fair amount of optimism priced into AMAT shares. Given AMAT's market dominance and financial muscle, no doubt some of that optimism is understandable. But I'm also unsure whether the stock has fully discounted the bad news. I really haven't gotten a clear idea of near term direction for the stock price based on the announcement. Perhaps it will depend on the macro news and surrounding market environment. Baird

To: Ian@SI who wrote (22850)	8/11/1998 9:11:00 PM
From: Proud_Infidel	Read Replies (6) \| Respond to of 70976

Misc CC Notes: * 300mm R&D development reduced significantly; although it was noted that they would have the tools for the vendors who wished to move ahead with their 300mm expansion plans * Gross margin of 44.6% down from prior Q- caused by shift to spares & service business * "Very uncertain when turnaround will occur" * Expect capex for 98 to be down 23-30%, down from previous estimates of a 10-15% decline * DRAM as a % of Revs 36% compared with 42% last year * Taiwan orders up slightly over prior Q * Market share improvement in Japan * Cash now represent approximately one-thrid of total assets * No common stock purchased during the Q! * Estimated market share of HDP-CVD 55% for 98 versus 42% for 97 * Believe they are now the market leader in CMP with 35% market share for 98 versus 15% for 97(100 systems shipped this Q) * Breakeven point ~$600M * "Cannot assume we've hit bottom" * DRAM parity expected by end of 99 * Guidance for new orders- in range of this Q($608M) * Guidance for Revs- 625-675M * Guidance for Gross Margins- mid-40's * Guidance for EPS-.02-.05Please note that I was frantically taking notes and am not sure I heard this correctly. Charges were mentioned; I am not sure if they are included in the .02-.05 BK