Semiconductor Capital Equipment Stocks Discussion

Top 21. Jul 2, 1998 8:32 AM

» Kirk - Ouch! S&P Revises Lam Research's Outlk To Neg Friday June 26

Ouch! S&P Revises Lam Research's Outlk To Neg

Friday June 26, 11:42 am Eastern Time

Company Press Release

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/26/98--Standard & Poor's today revised
its outlook on Lam Research Corp. [Nasdaq:LRCX - news] to negative from positive.

In addition, Standard & Poor's affirmed its double-'B'-minus corporate credit and bank loan ratings on the
company. Standard & Poor's also affirmed its single-'B' rating on the corporation's subordinated notes.

Lam Research's ratings reflect the company's good position in certain niche semiconductor processing markets and
good liquidity, offset by increasingly strained market conditions and aggressive competition. The outlook revision
incorporates Lam's expectation that semiconductor capital goods sector revenues for 1998 will be 30% below
1997 levels and weak conditions will persist in 1999.

Fremont, Calif.-based Lam manufactures equipment to deposit, etch, and polish microscopically thin layers on the
surface of silicon wafers, as part of the semiconductor manufacturing process. As the fifth-largest company in its
industry, Lam's ability to sustain its position through the current down cycle is materially less than industry leaders.

Market conditions weakened in 1997 and 1998 due to a steep decrease in Asian capital expenditures and generally
ample industry capacity, following several earlier years of rapid growth. The industry's views of prospective market
conditions have been ratcheted back several times in the last few quarters. Lam's revenues declined more steeply
than its peers, and are now at an annualized $1 billion level compared to $1.3 billion in fiscal 1996. Corresponding
operating margins have averaged 9% for the last four quarters, compared to historical 20% levels, also reflecting a
shift in product mix. Lam took restructuring charges in February and again in June 1998 as the company revised its
view of the recession. The company now expects to sustain its present financial position at a substantially lower
revenue level over the intermediate term. Still, the extent and severity of the current sector recession remain unclear.

Lam's cash, $350 million at March 30, 1998, supplemented by full availability in the revolving credit agreement,
should provide sufficient funds to support product development while adjusting to anticipated business levels.

OUTLOOK NEGATIVE

If Lam is unable to restore operating profitability levels or if its financial flexibility weakens further, ratings could be
lowered, Standard & Poor's said.---CreditWire

Contact:

Bruce Hyman, New York (1) 212-208-1350
For more information on criteria or subscriptions:
http://www.ratings.standardpoor.com

Kirk Lindstrom

Editor: Personal Finance and Investing
Reading List

-- posted by Kirk

Top 22. Jul 3, 1998 8:49 PM

» Kirk - Thanks for your concern, Frank. I have less than 1% in Utek and

Thanks for your concern, Frank. I have less than 1% in Utek and my cost basis is $23 so having it just under $20 is not a big deal. I keep the majority of my investments in mutual funds and company stock. Unfortunatly, the company stock is "at bargain levels" just like Utek so my overall portfolio return trails the S&P500.... but it still is beating my savings account return by a factor of 3.

Kirk Lindstrom

Editor: Personal Finance and Investing
Reading List

-- posted by Kirk

Top 23. Jul 10, 1998 10:31 AM

» Kirk - SEMI is an organization for semiconductor equipment manufactur

SEMI is an organization for semiconductor
equipment manufacturers.

SEMI Equipment
book to bill data

Kirk Lindstrom

Editor: Personal Finance and Investing
Reading List

-- posted by Kirk

Top 24. Jul 11, 1998 10:11 AM

» Kirk - BW)(APPLIED-MATERIALS)(AMAT) Applied Materials' Third Fiscal Qu

BW)(APPLIED-MATERIALS)(AMAT) Applied Materials' Third Fiscal Quarter Results to be Below Expectations

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 10, 1998--Applied Materials,
Inc., the world's largest supplier of wafer fabrication systems and services to the global
semiconductor industry, announced today that it expects its financial results for the third
fiscal quarter ending July 26, 1998 to be below expectations. The Company currently
expects new orders of $600 million to $675 million, net sales of $850 million to $885
million and ongoing earnings of $0.15 to $0.18 per diluted share for the third fiscal
quarter of 1998. The ongoing earnings forecast excludes an estimated $25 million to
$30 million restructuring charge (approximately $0.05 per share after-tax) associated
with a Voluntary Separation Plan announced by the Company on May 26, 1998.
Applied Materials will release its financial results for the third fiscal quarter on August
11, 1998.

The Company's customers are delaying orders, rescheduling equipment deliveries and
reducing spending on wafer fabrication support as they evaluate the impacts of difficult
economic conditions in Asia, DRAM overcapacity and weaker than expected PC sales,
compounded by a movement to lower-priced (sub $1,000) PCs. Although these factors
have been present for some time, their near-term effect on the semiconductor equipment
industry will be more severe than previously anticipated.

Customers are also seeking to assess new products and technology. Fortunately, the
Company is able to address these requirements with its new families of products. Even
with these opportunities, the Company's new orders for the third and fourth fiscal
quarters of 1998 will be significantly lower than the $1.03 billion achieved for the
second fiscal quarter.

This press release contains certain forward-looking statements that are subject to
known and unknown risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statements. In addition to the
possible exacerbation of the factors discussed above, such risks and uncertainties
include, but are not limited to, the ability of the Company to timely align its cost structure
with prevailing market conditions and the successful and timely development of new
markets, products, processes and services. The Company assumes no obligation to
update the information in this press release.

Applied Materials, Inc. is a Fortune 500 global growth company and the world's largest
supplier of wafer fabrication systems and services to the global semiconductor industry.
Applied Materials is traded on the Nasdaq National Market under the symbol,
"AMAT". Applied Materials' website is http://www.AppliedMaterials.com.

--30--slt/sf*

CONTACT: Applied Materials, Inc.
Carolyn Schwartz, 408/748-5227 (Investment Community)
or
Jeffrey Lettes, 408/563-5161 (Editorial/Media)

Kirk Lindstrom

Editor: Personal Finance and Investing
Reading List

-- posted by Kirk

Top 25. Aug 7, 1998 8:00 AM

» Kirk - First positive article on the Semicap rally that seems to have b

First positive article on the Semicap rally that seems to have begun!!!!

Click for article

Get a load on how AMAT is now at $37 and leading the rally. UTEK shorts beware as a short squeeze may getcha!

Kirk Lindstrom

Editor: Personal Finance and Investing
Reading List

-- posted by Kirk

Top 26. Aug 9, 1998 8:03 AM

» PeteM - May the sellers short of UTEK head for the exits en mass, with t

May the sellers short of UTEK head for the exits en mass, with their shopping carts full of UTEK.

Pete McCandlish

-- posted by PeteM

http://www.viwes.com/invest/shorts/query...

Top 27. Aug 10, 1998 5:23 PM

» SteveT - Short update in semi cap equip. http://www.viwes.com/invest/

Short update in semi cap equip.

The big companies are only a few days volume but UTEK at 19.5 days volume? Wonder who is going to take the fall? I am long in UTEK and looking for the cash to go into LSI and TER. If I go into LSI and TER I will be some what over weighted in tech and semi in particular ( about 20% tech and 16% in semis) any comments from those more experienced that me will be welcome.

-- posted by SteveT

Top 28. Aug 11, 1998 5:17 AM

» PeteM - Interesting point Steve. Even following BB's advice, re. the 4%

Interesting point Steve. Even following BB's advice, re. the 4% rule, you can still overweight in one sector if you own 5 stocks!

After hearing BB's comments on that sector this weekend, I have to think that it would not be a bad sector to be overweighted in, if you got in at the lows in the previous months.

Pete McCandlish

-- posted by PeteM