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

To: Paul V. who wrote (26499)	11/19/1998 1:14:00 AM
From: Jeffrey D	Read Replies (1) \| Respond to of 70976

Just when you think the move to 300 MM will be great for AMAT you get an article like this. What do our technology gurus on the thread have to say? Agree or disagree. Jeff << 300MM Wafer Transition to Have Negative Impact on Equipment Market Says the Information Network -------------------------------------------------------------------------------- NEW TRIPOLI, PA. (Nov. 18) BUSINESS WIRE -Nov. 18, 1998--The move to 300mm wafers by IC manufacturers will have a negative impact on the processing equipment market, according to the report 300mm/Copper/Low-K Convergence: Timing, Trends, Issues, Market Analysis, recently published by The Information Network, a New Tripoli, PA-based market research company. "The principal motivation behind the move to 300mm wafers is the prospect of 20 - 40% cost reduction in manufacturing each chip compared to 200mm wafers," notes Dr. Robert N. Castellano, President of The Information Network. "The saving is a result of 2.25 more chips per month on the larger wafer after spending only 1.5 times more to build and equip." In order to validate the high cost of demonstrating 300mm equipment tools ($1 million per demonstration borne by equipment manufacturers) International Sematech members, 10 from the U.S. and five from Europe and Asia, have largely promised chip equipment suppliers that they won't build any new 200mm wafer fabs. These IC manufacturers include: AMD (NYSE:AMD), Lucent Technologies (NYSE:LU), IBM (NYSE:IBM), Intel (NASDAQ:INTC), Motorola (NYSE:MOT), TI (NYSE:TXN), Siemens, STMicroelectronics (NYSE:STM), Philips (NYSE:PHG), Hyundai, and TSMC. "About 20 new fabs and 10 retrofits each year account for most of the IC production equipment sold. But with the boom and bust overcapacity cycles that have been occurring in the IC industry every three years or so, the 2.25 times more chips on a 300mm wafer will negatively impact fab construction to the point that only 10 fabs will be needed each year through the first half of the next decade," according to Dr. Castellano. While large equipment manufacturers such as Applied Materials (NASDAQ:AMAT) and Novellus (NASDAQ:NVLS) will feel the shockwaves, the brunt of the drop off in new fab construction will be felt by small equipment manufacturers. Nevertheless, there will be a long trailing edge of IC manufacturing on 200mm and 150mm wafers, which will require updated equipment at every generation change. The Information Network is a leading consulting and market research company addressing the semiconductor, computer, and telecommunications industries. >>

To: Paul V. who wrote (26499)	11/19/1998 1:19:00 AM
From: Jeffrey D	Respond to of 70976

I don't believe the Robertson Stephens viewpoint of the earnings announcement has been posted yet. Here it is. Jeff << BANCBOSTON ROBERTSON STEPHENS REITERATES BUY RATING FOR APPLIED MATERIALS -------------------------------------------------------------------------------- SAN FRANCISCO, Calif., Nov. 18 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens semiconductor equipment analyst Sue Billat today raised her estimate on Applied Materials (Nasdaq: AMAT) and reiterated her Buy rating on strong order bookings. Applied Materials, located in Santa Clara, California, is the world's leading supplier of semiconductor wafer fab equipment. "Applied Materials reported solid financial results coupled with stellar technology driven orders for Q4:F98," said Billat. "Applied reported a Q4:F98 operating EPS of $0.07, beating our and the First call consensus of $0.02. Revenues of $673 million came in at the high end of the range given in guidance coming out of FQ3, and were comfortably above our $645 million projection. I am raising our EPS estimate for 1999 to $0.55 from $0.50 and reiterating our Buy rating." Applied's results confirm the observations Billat made in her October 21, 1998 Semiconductor Industry Update. In this report Billat upgraded the market, stating that the industry had bottomed out and that the recovery would be slow and selective as the semiconductor industry accelerates its move to 0.18 micron technology. Billat believes that this will favor technology leaders such as Applied Materials. >>

To: Paul V. who wrote (26499)	11/19/1998 1:29:00 AM
From: Paul V.	Read Replies (1) \| Respond to of 70976

Threaders, Following is an press release from AMAT over the WSJ Interactive Edition. Paul V. >Applied Materials Inc. Dow Jones Newswires -- November 18, 1998 Applied Materials CEO: Shift To Copper In Chips To Help Co. NEW YORK (Dow Jones)--Applied Material Inc. (AMAT) will benefit from a semiconductor industry shift toward new technologies, according to Chief Executive James Morgan. "There's a shortage of equipment in the emerging new technology areas and that will help us," Morgan said in an interview on CNBC Wednesday. The use of copper in chips, as opposed to the standard aluminum, is gaining popularity and Applied Materials stands to benefit if it gains acceptance. "We really are the leader in the copper area and copper is just getting started," Morgan said. Applied Materials has championed technology innovations in the past, although with mixed results. The company did a lot of work with a 300 millimeter disk, but the technology has not really been embraced by chip companies. "Everybody wants to be second in the move to 300 millimeter," Morgan said. "No one's made a big commitment to production." Morgan said, however, that if a chip company makes the shift Applied Materials could ramp up its work in the area. On the whole Morgan said the worst days for the chip industry are in the past. "We think the industry's bottomed out, if you assume the economy doesn't get substantially worse," he said. -Nancy Beiles; 201-938-5393<

To: Paul V. who wrote (26499)	11/19/1998 1:51:00 AM
From: Paul V.	Respond to of 70976

Threaders, Company releases--Bear food for the Bears and Bull food for the Bulls.<gg> Who is going to get fatter?:) Paul V. Applied Materials Inc. November 18, 1998 BancBoston Robertson Stephens Reiterates Buy Rating for Applied Materials SAN FRANCISCO, Calif., Nov. 18 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens semiconductor equipment analyst Sue Billat today raised her estimate on Applied Materials (Nasdaq: AMAT) and reiterated her Buy rating on strong order bookings. Applied Materials, located in Santa Clara, California, is the world's leading supplier of semiconductor wafer fab equipment. "Applied Materials reported solid financial results coupled with stellar technology driven orders for Q4:F98," said Billat. "Applied reported a Q4:F98 operating EPS of $0.07, beating our and the First call consensus of $0.02. Revenues of $673 million came in at the high end of the range given in guidance coming out of FQ3, and were comfortably above our $645 million projection. I am raising our EPS estimate for 1999 to $0.55 from $0.50 and reiterating our Buy rating." Applied's results confirm the observations Billat made in her October 21, 1998 Semiconductor Industry Update. In this report Billat upgraded the market, stating that the industry had bottomed out and that the recovery would be slow and selective as the semiconductor industry accelerates its move to 0.18 micron technology. Billat believes that this will favor technology leaders such as Applied Materials. BancBoston Robertson Stephens is a leading international investment banking firm focused on emerging growth companies. The firm's 55 senior research analysts cover over 575 companies. The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of BancBoston Robertson Stephens, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." BancBoston Robertson Stephens from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this Report and the opinions contained herein are based on sources believed to be reliable, BancBoston Robertson Stephens has not independently verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. BancBoston Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BancBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested. /CONTACT: Michelle Duron, Blanc & Otus PR, 415-693-3334, or 415-512-0500, or mduron@bando.com, for BancBoston Robertson Stephens/ < Applied Materials Inc. Dow Jones Newswires -- November 18, 1998 Applied Materials Seen Flat On Subdued FY99 Outlook By Maria V. Georgianis NEW YORK (Dow Jones)--Applied Materials Inc. (AMAT) is seen trading flat Wednesday, despite reporting fiscal fourth-quarter earnings above expectations, as the company expects flat to lower bookings over the next two quarters. After Tuesday's market close, the world's largest chip equipment maker reported earnings of 7 cents a share, excluding charges, for the three months ended Oct. 25, above analysts' expectations of 2 cents and year-ago earnings of 49 cents. Revenue plunged 47% to $673 million from $1.28 billion a year ago. During a conference call, Applied Materials told analysts it also expects flat to lower revenue and earnings at or slightly above breakeven for the next two quarters, said Needham & Co. analyst Theodore O'Neill. In recent trading, Applied Materials was at 37 3/4, according to Instinet. The stock closed Tuesday at 37 3/8, up 1 1/16, or 2.9%. In other tech stock activity, Microsoft Corp. (MSFT) was last trading at 109, Instinet reported. The stock closed Tuesday at 111 7/8, up 3 1/16, or 2.8%. The company sustained a legal blow after a federal district court Tuesday granted rival Sun Microsystems Corp. (SUNW) a preliminary injunction in its Java software breach-of-contract lawsuit. The ruling prohibits Microsoft from shipping an altered version of Sun's Java software. The suit alleged Microsoft breached its Java licensing contract by modifying Sun's Java programming language. Sun, which closed Tuesday at 66 11/16, up 3 7/8, or 6.2%, was last trading at 68 1/4, according to Instinet. By Maria V. Georgianis 201-938-5244