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 : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (15202)	9/22/1998 3:46:00 PM
From: Moonray	Respond to of 25814

Report shows more semiconductor weakness CBS MarketWatch - Last Update: 3:29 PM ET Sep 22, 1998 SAN JOSE, Calif. (CBS.MW) -- Even as chip equipment stocks surged Tuesday, a report of declining orders piqued concern among analysts that the group is headed for another season of reduced earnings expectations. According to Semiconductor Equipment and Materials International, the industry's book-to-bill fell 15 percent to 0.60 in August, compared to 0.66 in July. The results, which indicate equipment makers received $60 in new orders for each $100 worth of products shipped, are the lowest in the seven years that the group has tracked the trend, said Mark FitzGerald, a Merrill Lynch analyst. The figure is down 55.9 percent from the same period a year ago. The report quelled optimism that the industry had already reached a bottom and revived questions about the group's third-quarter prospects. "As earnings season unfolds, another round of estimate cuts appears likely," said Credit Suisse First Boston analyst Kathryn Buergert. "A material rebound in stock prices from near-52-week lows may be delayed until we see some evidence that fab utilization is firming." Nevertheless, some hope remains for a recovery, albeit long-term. A recent pickup in semiconductor demand and expectations for strong third- and fourth-quarter computer sales may be auspicious for the troubled sector. "While the equipment market should also see a leveling, the prospects for recovery still appear to be at least twelve months off," said Dick Greene, principal analyst with SEMI. Semiconductor equipment shares were firm Tuesday, as Applied Materials Inc. (AMAT) rose 9/16 to 25 5/16, KLA-Tencor Corp. (KLAC) added 1 5/16 to 24 5/8, Uniphase Corp. (UNPH) jumped 1 11/16 to 42 15/16 and Novellus Systems Inc. (NVLS) gained 3/8 to 24 1/16 o~~~ O