Excess inventory of computer chips seen as mixed signal

Article Abstract:

Cirrus Logic anticipates a loss for 4th qtr FY 1995, while Applied Materials reports record results for 1st qtr 1996, and the book-to-bill ration drops to a five-year low, reflecting uncertainty in the semiconductor industry. Cirrus makes semiconductor chips and the company forecasts that revenues will drop below those earned in 3rd qtr FY 1995. Applied Materials makes the equipment to produce semiconductor chips and its net income totaled $172 million in 1st qtr 1996, up 161% from the $65.8 million earned in 1st qtr 1994. Revenue for the quarter rose to $1.04 billion, more than twice the $506.1 million collected in the previous year. The Jan 1995 bill-to-book ratio dropped to 0.93, which indicates that the industry received only $93 in orders for each $100 worth of chips sent out. Analysts say that short-term PC sales cycles affect chip makers, but they worry that more production equipment could lead to an over-supply of chips.

Industry trend, Cirrus Logic Inc., CRUS, Applied Materials Inc., AMAT

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Intel beats expectations on strong demand for chips

Article Abstract:

Intel's 3rd qtr 1998 earnings of $1.56 billion, or 89 cents a diluted share, represents a surprising result for the leading international semiconductor manufacturer. By comparison, a First Call-led survey of analysts projected 80 cents a share. The company reported $1.57 billion, or 88 cents a share, in the 3rd qtr 1997. Revenues rose from $6.16 billion in the 3rd qtr 1997 to $6.73 billion in the 3rd qtr 1998 for a 9% gain. This unexpected showing comes amid the toughest industry competition since the 1980s, led by rivals AMD, National Semiconductor and IBM. Intel Pres and CEO Craig R. Barrett attributed the upswing to growth in almost all regions and product lines, including robust microprocessor sales. Late 4th-qtr demand surprised company officials, who had anticipated growth because of normal season fluctuations and an inventory reduction.

Intel Corp., INTC, Company sales/revenue, Company sales and earnings, Company earnings/profit

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Index of demand for chips soars to high for this year

Article Abstract:

Semiconductor book-to-bill figures for Oct 1996 were 1.10, the highest orders-to-shipments ratio since Dec 1995. The leading industry indicator's gain exceeds analysts' expectation, and shows the industry to be growing again. Oct 1996 chip orders were up 18%, or $556 million, to $3.74 billion. shipments were up 5%, or $161 million, to $3.39 billion. In addition, DRAM chip prices have stabilized, indicating that the DRAM market is not as flooded as it was for much of 1996. Semiconductor industry leader Intel Corp announced last week that its 4th qtr 1996 results would exceed estimates due to increased orders. The Semiconductor Industry Association's book-to-bill figures, which cover North and South America, or merely a third of the worldwide market, will be replaced by the Global Billings Report, providing a more comprehensive market overview.

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