Both Applied and KLA-Tencor has reported lower order or forecast. Usually, their forecast is prediction for Intel and many other chip makers almost 12-18 month advance and in a way 18-24 month for Software companies like Microsoft.. Agreed, a lot could change between now and in next 12-24 months but still.. I would be really worried.. Unless, it is minor aberration for just this quarter I would be really worried and would go short after 6 months from now or after holiday season..
I hope that they give better forecast and report next quarter..
Chip-gear maker Applied lowers forecast for full year
Reuters
Santa Clara chip-gear maker Applied Materials slashed its fullyear targets due to a sudden drop in orders in its biggest market toward the end of the current quarter, underscoring fears of a downturn in global technology spending.
The company, which generates more than half its total revenue from its Silicon Systems Group business — the unit that caters to chipmakers and foundries — was hit by an extraordinary cutback in orders amid weak spending and floundering PC sales.
“Even though we anticipated there would be some seasonal pullback, we really didn’t expect anything on this order of magnitude,” Chief Financial Officer George Davis said Tuesday.
CEO Mike Splinter said foundry operators — including manufacturers such as TSMC that make chips under contract for many companies, as well as industry bellwethers such as Intel that fabricate their own chips — pulled back toward the end of the third quarter.
Davis said the company has seen as much as a $500 million pullback in orders since the beginning of June by foundry customers who build chips for other companies, as chipmakers delay spending in a weak economy.
The company said full-year profitability would be down by about 15 cents to 20 cents a share, compared with previous estimates.
I hope that they give better forecast and report next quarter..
Chip-gear maker Applied lowers forecast for full year
Reuters
Santa Clara chip-gear maker Applied Materials slashed its fullyear targets due to a sudden drop in orders in its biggest market toward the end of the current quarter, underscoring fears of a downturn in global technology spending.
The company, which generates more than half its total revenue from its Silicon Systems Group business — the unit that caters to chipmakers and foundries — was hit by an extraordinary cutback in orders amid weak spending and floundering PC sales.
“Even though we anticipated there would be some seasonal pullback, we really didn’t expect anything on this order of magnitude,” Chief Financial Officer George Davis said Tuesday.
CEO Mike Splinter said foundry operators — including manufacturers such as TSMC that make chips under contract for many companies, as well as industry bellwethers such as Intel that fabricate their own chips — pulled back toward the end of the third quarter.
Davis said the company has seen as much as a $500 million pullback in orders since the beginning of June by foundry customers who build chips for other companies, as chipmakers delay spending in a weak economy.
The company said full-year profitability would be down by about 15 cents to 20 cents a share, compared with previous estimates.
KLA says orders to decline in quarter
Milpitas-based KLA-Tencor, a maker of equipment used to make semiconductors, said it expects orders in the current quarter to decline as makers of memory chips hold off on boosting production. KLA-Tencor fell 0.3 percent, or 13 cents a share, to finish at $45.49 Tuesday.
Milpitas-based KLA-Tencor, a maker of equipment used to make semiconductors, said it expects orders in the current quarter to decline as makers of memory chips hold off on boosting production. KLA-Tencor fell 0.3 percent, or 13 cents a share, to finish at $45.49 Tuesday.
No comments:
Post a Comment