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Marketmayhem are you and the Madtryagain related ?
Do you stay up at night and listen to Art Bell ?
Imagine you see Black Helicopters on the horizon ?
Just curious...
Take a pill is right.
I was just about to say that in your absence the nutjobs are getting louder, standing on your internet corner waving their "World Ends Tomorrow" signs... lol
deleted...
Consumer Confidence Reaches New High for 2006 at 120.5
Rasmussen ^ | October 19, 2006
http://rasmussenreports.com/daily.htm
The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, jumped two and a half points Thursday to reach its highest level of 2006. At 120.5, the Index is up ten points from a month ago and up thirteen from three months ago. This is just the second time in calendar year 2006 that the Index has topped the 120 mark.
The Rasmussen Investor Index also gained ground on Thursday, moving up two points to 145.5. That’s up 18 points from a month ago. Only twice this year has the Investor Index measured higher levels of confidence than today.
Ahead of the Bell: Micron Technology
Friday September 8, 9:01 am ET
Jefferies Analyst Upgrades Micron Tech, Says Chip Demand and Pricing Are Improving
NEW YORK (AP) -- A Jefferies & Co. analyst upgraded chip maker Micron Technology Inc. on Friday, pointing to improving pricing, chip demand and product diversification that reduces exposure to the troubled personal computer market.
Shares rose 41 cents, or 2.4 percent, to $17.35 in pre-market electronic trading, after closing Thursday at $16.94 on the New York Stock Exchange. The stock has traded in a 52-week range of $11.60 to $17.60 and is up about 27 percent since the beginning of the year.
(Canny, fade the 'Oct swoon thesis'. Pockets of Housing will not tank the economy with interest rates still relatively low and real wages rising.)
Mad, do you have any link or is your post personal opinion ?
Worst Over For Semis: Analyst
Scott Reeves, 09.07.06, 8:05 AM ET
The worst of the semiconductor inventory correction is over, an analyst at Cowen and Company believes.
Seasonal demand is building in personal computers, handsets and liquid crystal display TVs. This should benefit Marvell Technology Group (nasdaq: MRVL - news - people ), Broadcom (nasdaq: BRCM - news - people ), Sirf Technology Holdings (nasdaq: SIRF - news - people ) and PMC-Sierra (nasdaq: PMCS - news - people ).
"Given that inventory correction is progressing well and our anticipation of a cyclical recovery in 2007, we are very constructive on the communication semiconductor group," Jim Liang, an analyst at Cowen and Company, said in a recent research report.
This year's seasonal build started four to six weeks later than in 2005 due to excess inventory and uncertain demand, the analyst said.
Motorola (nyse: MOT - news - people ) and Sony Ericsson have accelerated their handset build schedules in the second half of August after cutting orders in June and July.
"We believe this bodes well for Broadcom which supplies Bluetooth chips to Motorola handsets and baseband chips to Sony Ericsson handsets," Liang said.
The analyst said the communication semiconductor group can work its way "significantly higher" in the next 12 months.
nomo... Looks like you sold too early:
UPDATE 1-Xilinx raises quarterly sales guidance
Wed Jan 4, 2006 04:48 PM ET
(Recasts, updates with details, stock price)
SAN FRANCISCO, Jan 4 (Reuters) - Programmable-chip maker Xilinx Inc. (XLNX.O: Quote, Profile, Research) on Wednesday raised its quarterly sales forecast, citing broad-based demand around the world, and its shares rose.
Xilinx, whose chips are found in devices from mobile phones to digital projectors, said sales for its fiscal third quarter ending in December were thought to have risen 11 percent to 12 percent from the previous quarter.
Sales were "driven by broad-based end-market strength and strong sales growth in North America, Asia-Pacific and Europe," the company said in a statement. It gave no further details.
The new forecast would put quarterly sales between $442.8 million to $446.8 million.
It was the second time in less than a month that Xilinx raised its sales forecast.
Last month, the company said sales were expected to rise 4 percent to 8 percent due to strong business in North America and Asia.
Xilinx shares jumped 4 percent to $28 in extended Nasdaq trading, extending a gain of 4.5 percent in regular trading.
(nomo, enjoy reading your posts, and love the humor that creeps in sometimes. Best to you !)
November chip sales beat forecast
EE Times
SAN JOSE, Calif. — Monthly chip sales are expected to improve to a three-month average of $20.4 billion in November, up from $20.05 billion in October, according to Handelsbanken Capital Markets.
The figure beat the investment banking firm’s forecast, which was originally slated for $20.17 billion in November. Actual world chip sales rose 7.3 percent year-over-year in November, above the investment banking firm’s expectations of 3.6 percent growth.
PC shipments rebounded sharply as expected after a chip set shortage hurt shipments in October. Sales of consumer electronics chips were stronger than expected, with NAND memory soaring 103 percent year-over-year on the iPod boom, according to the firm.
Some handset chips hit record high levels. But price pressure on digital signal processors (DSPs) and regional data indicate that growth is being driven by developing countries rather than the seasonal upswing for Christmas in Europe and the U.S, said Bruce Diesen, strategist with Handelsbanken.
Chip shipments to the Americas were stronger than expected, as more consumer electronics chips, especially logic and flash memory, were shipped to the U.S., he said.
The firm is maintaining its overall chip sales growth forecast at 7 percent in 2005 and 8 percent in 2006.
Come-on Fed, don't be such a constant curmudgeon. It's almost Christmas. Leave the endless doom and gloom to Marketmayhem. He can handle all the dirty deeds (done dirt cheap) by himself. Here's a little Christmas cheer just for you:
The bulls are pawing and snorting
Optimistic investors see good things to come on Wall Street
MORE FROM BUSINESSWEEK ONLINE
By Mara Der Hovanesian
Updated: 5:57 p.m. ET Dec. 19, 2005
Market bulls are itching to run. They say U.S. stock indexes will not only hit a new high over the next 12 months but also will break their all-time record of five years ago, the peak of the longest-running bull market in history. U.S. business, the bulls argue, will clock in its fourth straight year of strong profit growth, and the economy will grow at a robust clip of 3 percent or more. Oil prices that reached $70 a barrel this summer will ebb, and inflation worrywarts will be silenced, at least for now. Oh, and the bottom won't fall out of the housing market, either.
Sound far-fetched? Maybe it isn't. If the woes of the auto and airline industries, a Category 4 hurricane, surging oil prices, and increasingly indebted consumers haven't yet derailed the markets, what on earth will? Even a dozen Federal Reserve interest rate hikes since mid-2004 haven't put the kibosh on the economy, which grew at a stronger-than-expected 4.3 percent rate in the third quarter. Sure, the markets have struggled to process often conflicting signals and, as a result, have been stuck in a narrow trading band for two years. So how can the bulls be so sanguine? "Everyone complains about the stock market going sideways, but sideways is in fact an incredible victory," says Ronald P. O'Hanley, vice-chairman of Pittsburgh-based Mellon Financial Corp.
Optimists aplenty
Good point. Thanks to the recent rally, the Standard & Poor's 500-stock index and the Nasdaq Composite Index were up 4 percent and 3.7 percent, respectively, through Dec. 9, although the momentum was barely enough to push the Dow Jones industrials into positive territory. Yet even that lackluster outcome is seen as a harbinger of good returns. With the S&P trading at a price-earnings ratio of about 16 based on estimated 2006 earnings, many investment pros think the market is undervalued. "We're bullish," says David S. Spika, an investment strategist at Westwood Holdings Group in Dallas. "The market is relatively cheap."
Spika has plenty of company among the Wall Street strategists we polled for BusinessWeek's 34th yearend investment outlook. The consensus pegs the Dow closing above 11,500 next year, the S&P at 1,347, and the Nasdaq Composite at 2,428 — roughly 7 percent gains from here. Our forecasters say they're optimistic because two major headwinds for equities — rate hikes and oil price spikes — look to be easing off.
As always, an important driver in the stock market will be profits, and they're still holding up well, too. By yearend, S&P 500 stocks will have reported about $77 in operating earnings per share — a 13 percent rise, and the 15th quarter in a row of year-over-year double-digit growth. Howard Silverblatt, an equity-market analyst at S&P, says his group expects an additional 11.4 percent increase in 2006. "It'll downshift just a little bit," agrees Bob Baur, managing director, Principal Global Investors LLC. "But there's nothing wrong with that. You can't expect 20 percent profit growth forever."
Companies have been sharing that wealth. In 2005 they spent a record $300 billion on share buybacks and another $200 billion on dividend payments, according to Silverblatt. That trend is expected to stay intact, so dividend-paying stocks are still a good bet.
"TI's updated estimate reflects strong demand"
TI Updates Fourth-Quarter 2005 Business Outlook
Wednesday December 7, 4:30 pm ET
* Revenue Expected between $3.560 Billion and $3.705 Billion
* EPS Expected between $0.38 and $0.40 Including Stock Option Expense
Conference Call on TI Web Site at 4 p.m. Central Standard Time Today www.ti.com
DALLAS, Dec. 7 /PRNewswire-FirstCall/ -- In a scheduled update to its business outlook for the fourth quarter of 2005, Texas Instruments Incorporated (NYSE: TXN - News; TI) today narrowed its expected ranges for revenue and earnings per share (EPS). TI's updated estimate reflects strong demand across a broad range of its Semiconductor products.
The company's expectations for revenue are:
* Total revenue between $3.560 billion and $3.705 billion, compared with
the prior range of $3.425 billion to $3.715 billion;
* Semiconductor revenue between $3.200 billion and $3.325 billion,
compared with the prior range of $3.075 billion to $3.325 billion;
* Sensors & Controls revenue between $295 million and $305 million,
compared with the prior range of $290 million to $310 million; and
* Educational & Productivity Solutions revenue between $65 million and
$75 million, compared with the prior range of $60 million to
$80 million.
TI expects EPS between $0.38 and $0.40, compared with the previous range of $0.36 to $0.40. Both the current and previous EPS ranges include the expensing of employee stock options, which TI continues to expect to be $0.03 per share.
The company will hold a conference call at 4 p.m. CST today to discuss this update. This conference call will be available live at http://www.ti.com . TI's original fourth-quarter outlook was published in the company's third-quarter 2005 earnings release on Oct. 24, available at http://www.ti.com . TI's fourth quarter ends on Dec. 31.
Xilinx Raises December Quarter Sales Guidance
Wednesday December 7, 4:15 pm ET
SAN JOSE, Calif., Dec. 7 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX - News) today released its business update for the December quarter of fiscal 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO )
-- December quarter sales are now expected to increase 4% to 8%
sequentially as a result of better than expected sales from customers
in North America and Asia Pacific. This is up from prior guidance of
up 1% to 5% sequentially.
-- Gross margin guidance of 62% to 63% is unchanged.
-- Pursuant to the provisions of the American Jobs Creation Act of 2004,
the company has elected to repatriate $500 million of foreign earnings.
As a consequence, the company will record a tax charge of approximately
$27 million in the December quarter related to the extraordinary
dividend.
-- The effective tax rate for the year, excluding the repatriation, is
expected to increase to 23%, up from previous guidance of 21% - 22%.
This is due to greater forecasted profits in the United States than
originally expected.
Wednesday December 7, 4:15 pm ET
"Industry sales continue to track with our forecast of 6.8 percent growth.."
Peter Clarke
EE Times
(12/02/2005 7:05 AM EST)
LONDON — A strong rebound in consumer confidence drove the three-month average of worldwide semiconductor sales in October to $20.05 billion, a record figure and up 2.5 percent sequentially from the $19.55 billion reported for September and up 6.75 percent from the $18.78 billion reported for October 2004, according to World Semiconductor Trade Statistics (WSTS) figures.
The WSTS numbers were published by the U.S. Semiconductor Industry Association (SIA) and the European Semiconductor Industry Association (ESIA). The SIA and other regional industry groups publicize sales statistics gathered by WSTS as the three-month moving averages of monthly sales activity, rather than the actual numbers. The SIA says it calculates averages to smooth out variations due to companies' sales reporting calendars, which often make March, June, September and December five-week months thereby inflating those month's numbers.
“Strong demand for consumer electronics drove worldwide chip sales over $20 billion in October,” said SIA president George Scalise, in a statement.
“A sharp rebound in consumer confidence was reflected in strong sales of a broad range of consumer products, such as cell phones, MP3 players, digital cameras, digital TVs, and personal computers.” Scalise noted that demand for semiconductors was strong in all industry sectors, noting that all of the semiconductor product lines tracked by SIA saw sequential sales increases in October.
“Industry sales continue to track with our forecast of 6.8 percent growth to $228 billion in 2005. Inventories are in balance, and production capacity utilization remains in the healthy 90 percent range,” Scalise concluded.
"capacity utilization, at 96 percent"
Peter Clarke
EE Times
(10/27/2005 7:15 AM EDT)
LONDON — Foundry chip maker Taiwan Semiconductor Manufacturing Co. Ltd. announced that sales were up 18 percent sequentially in the third quarter as it sold NT$69.26 billion (about $2.06 billion) in the third quarter. Year-on-year sales were down 0.7 percent.
TSMC (Hsinchu, Taiwan) made a net income at NT$24.49 billion ($727 million) was 12.3 percent down year on year, but was up 33 percent sequentially and was in line with expectations.
The 18.4 percent increase in third quarter revenue resulted mainly from a 19.8 percent increase in wafer shipments, the company said. Gross margin was up due to higher levels of capacity utilization, at 96 percent, and more favorable exchange rates. Advanced process technologies (0.13-micron and below) accounted for 43 percent of wafer revenues, same as in the previous quarter. Meanwhile, revenues from 90-nanometer process technology reached 10 percent of the total wafer sales.
“Due primarily to continual demand recovery from our customers, our third quarter business had improved better than we guided previously,” said Lora Ho, TSMC chief financial officer, in a statement.
Ho said that in the fourth quarter TSMC expected revenues to be between NT$77 billion (about $2.28 billion) and NT$79 billion (about $2.35 billion) as the overall manufacturing capacity utilization rate hits 100 percent.
"end markets for semiconductors continue to be very strong"
Peter Clarke
EE Times
(10/03/2005 7:14 AM EDT)
LONDON — George Scalise, president of the Semiconductor Industry Association, talked of "lingering concerns" over high energy prices but acknowledged that the semiconductor market is likely to achieve record sales in 2005 in his commentary on the August there-month average of worldwide chip sales.
“While there are lingering concerns about the effects of high energy prices and the impacts of Hurricanes Katrina and Rita in the United States, end markets for semiconductors continue to be very strong,” said Scalise, in a statement.
Scalise said that unit sales of personal computers are continuing to run ahead of earlier forecasts, resulting in strong increases in sales of microprocessors and DRAMs and that sales of flash memory are also up sharply, reflecting robust sales of cell phones and consumer products such as MP3 players.
In addition, the SIA reported that overall manufacturing capacity utilization increased from 85 percent to 89 percent during the second quarter. Leading-edge capacity utilization, which the SIA defines as manufacturing lines operating at 160-nanometer and smaller geometries, was even higher at 95 percent. SIA also projects that utilization is set to increase in the third quarter.
“With continued strong demand from end markets, supply and demand in balance, coupled with inventories under control, the outlook for semiconductor sales remains strong, consistent with our forecast for 6 percent year-to-year growth,” said Scalise. “We remain cautious about consumer confidence, especially in the United States, where the effects of the two recent hurricanes and the subsequent sharp rise in gasoline prices are not reflected in the August sales numbers.”
Chip market was strong in August, says ESIA
Peter Clarke
EE Times
(10/03/2005 6:26 AM EDT)
LONDON — The three-month average of worldwide semiconductor sales in August came in higher than expectations at $18.58 billion, up 3.2 percent from $18.01 billion in July. This was also up 1.7 percent from the equivalent figure in August 2004, according to figures from the World Semiconductor Trade Statistics (WSTS) organization published by the European Semiconductor Industry Association (ESIA).
According to Bruce Diesen, analyst with Handelsbanken Capital Markets these averages imply that actual world chip sales rose 6.2 percent year-on-year in August; which he attributed to surging PC shipments as well as broad strength in other equipment categories.
“It seems the inventory correction that started July 2004 has finally ended, and using our seasonal adjustments, world chip sales passed their previous peak (July 2000) for the first time,” said Diesen
On a year-to-date basis, the August three-month average figure represents a 5.8 percent increase, the same as in July but from the 6.4 percent recorded in June, ESIA said.
All the major regions monitored by WSTS showed growth with Asia Pacific and the Americas region beating the worldwide average with growth of 4.8 percent to $8.66 billion and 3.4 percent to $3.24 billion respectively. Sales in Japan grew 0.9 percent to $3.60 billion and in Europe sales grew 1.0 percent to $3.08 billion. In euro terms the European market performed slightly better growing by 1.9 percent.
2006 Signals Start of Next Growth Cycle (Semico Research)
Chart here: http://www.us.design-reuse.com/news/news11380.html
Phoenix, AZ -- Sept. 16, 2005 -- Semico’s Inflection Point Indicator (IPI) has shown strength for the last three months, triggering Semico’s projection for a healthy 2006 forecast, and the start of the next growth cycle. The upturn in the IPI began in May, when the IPI rose 4.6%. In June, the IPI registered a hefty increase of 6.6%, and remained elevated this month at 15.8.
Since Semico’s IPI has proven to accurately forecast the market 8 to 9 months in advance, the current trend points to the February-April 2006 timeframe. This strength in the IPI signals seasonal growth greater than what we would typically expect next year; worldwide semiconductor revenue shipments are forecast to increase a robust 18.3% in 2006, reaching $262.1 billion.
This growth cycle is expected to continue into 1H08, before moderating in 2H08. The next downturn will start in the second half of 2008 and continue into 2009, with the industry declining 2.6%. Technological shifts in the industry are creating new applications, boosting semiconductor sales, and driving the current semiconductor growth cycle. Digital content continues to flood the market in the form of audio, video, and high-speed data. Digital connectivity and portability are emerging as desirable features, creating the need for new platforms in the home, office, and automobile.
Momentum is already building in 3Q05, with revenue projections hitting 3.1%, followed by continued growth in the fourth quarter. Final worldwide semiconductor revenue shipment data just released by the SIA showed total revenue shipments in July were $16.8 billion. July’s weekly revenue run rate matched that of the previous month, at $4.1 billion. Year-over-year, July 2005 revenue shipments were up 1.9% over July 2004.
While we are optimistic heading into 2006, there are two factors that could curb this growth trend and potentially translate into a loss of discretionary income and lower consumer confidence-soaring gas prices and hurricane Katrina.
SEMICO IPI
Source: Semico Research Corp.
Semico Research developed the Inflection Point Indicator to assist in forecasting semiconductor revenues approximately two quarters in advance. IPI—combined with our bill-of-materials, end-market analysis and primary research—has helped Semico Research accurately forecast the industry ahead of all the other prognosticators.
About Semico
Semico Research Corp is a marketing and consulting research company located in Phoenix, Arizona.
Semico was founded in 1994 by a group of semiconductor industry experts. We have improved the validity of semiconductor product forecasts via technology roadmaps in end-use markets. Semico offers custom consulting, portfolio packages, individual market research studies and premier industry conferences.
Wafer supplier cancels shutdown due to demand
Peter Clarke
EE Times
(09/23/2005 9:56 AM EDT)
LONDON — Finnish silicon wafer supplier Okmetic Oyj has decided to cancel a shutdown previously scheduled to take place between Christmas and New Year due to strengthening demand.
Okmetic (Vantaa, Finland) issued a note to the Helsinki stock exchange Friday (Sept. 23) saying that its order book had grown during the first half of September and, as a result, the company had cancelled the one-week shut-down that was planned to take place in the Finnish plant between Christmas and New Year.
The company gave no background as to why its order book had built. The company supplies wafers for the manufacturers of semiconductor and sensor components.
Okmetic spun out its silicon carbide operation as Norstel AB (Linkoping, Sweden), in February 2005, while retaining a 20 percent stake in the Swedish wafer company.
Kulicke & Soffa Announces Orders for 580 Wire Bonders From SPIL
WILLOW GROVE, PA, Sep 08, 2005 (MARKET WIRE via COMTEX News Network) -- Kulicke & Soffa Industries, Inc. ("K&S") (NASDAQ: KLIC) today announced that Siliconware Precision Industries Co., Ltd. (TAIEX: 2325) (NASDAQ: SPIL), a leading provider of comprehensive semiconductor assembly and test services, has placed a series of purchase orders for 580 K&S wire bonders for its Taichung, Taiwan facility. These orders included: 160 Maxum Plus machines in the final weeks of the quarter ended June 30, 2005; current quarter to date orders for 113 Maxum Plus machines; and 307 of K&S's newest model, the Maxum Ultra, which is designed to meet the challenges of increased package functionality and small footprint devices. Deliveries for these orders began in July and are expected to be complete in October. K&S provides the majority of SPIL's wire bonder capacity and currently expects to receive additional Maxum Ultra orders to meet SPIL's ongoing production demand.
Patrick Lin, director of SPIL Operations' Support Division commented, "We are experiencing significant demand for complex IC packages being driven by low-cost, personal computers in the second half of calendar 2005 that is exceeding our current wire bonder capacity. We have now completed the engineering evaluation of our first Maxum Ultra machine, which has proven to be very successful. This was a key step in our extensive qualification process of the most difficult multi-tier and stacked die packages, requiring precision looping, bond force control, and high accuracy. This quarter will begin the transition period between the Maxum Plus and Maxum Ultra for SPIL."
"K&S remains the technology and productivity leader with the Maxum Ultra. It has the leading-edge capability in all the most difficult, advanced packages," explains Christian Rheault, vice president of K&S Ball Bonder Business Unit. "The Maxum Ultra's performance has been shown to provide over 10% higher throughput in production environments than its predecessor and has superior process capabilities for all types of devices, especially those using 90 nanometer technology."
Sounds about right..
Inventories overall in balance heading into stronger seasonal period - WR Hambrecht
In a note out before the open, WR Hambrecht noted that their checks into semiconductor inventory levels at major OEMs have yielded favorable indicators across the board. Firm is observing uncharacteristically lean inventory levels from OEMs and distributors - likely a precautionary measure by OEMs to avoid the buildups of 2004. From an inventory standpoint, firm believes the semiconductor supply chain has fully corrected and they do not forsee 2H05 ending in an overhang like last year. Firm believes these positive indicators bear a particularly strong influence on SSTI, ISSI, as well as GNSS, TRID and ZRAN. Reits Buy on these names.
Oy Vey !!
And yes, it does sound like complaining,
Constantly...
Then get long you turkey and quit complaining everytime it pops...
Are you short the Qs ?
National Semiconductor Reports 5.7% Sequential Revenue Increase, Record 56.2% Gross Margin for First Quarter FY06
Thursday September 8, 12:16 pm ET
- Q1 revenues are $493.8 million, up from $467 million in Q4 of Fiscal 2005
- Q1 GAAP net profit is $85.6 million and earnings are 24 cents per share
- Analog focus drives 1.5 percentage-point gain in gross margin for Q1
- Bookings increased 18 percent sequentially and exceeded billings in Q1
- Revenue outlook for Q2 of Fiscal 2006 is approximately 5 percent growth from Q1
SANTA CLARA, Calif., Sept. 8 /PRNewswire-FirstCall/ -- National Semiconductor Corporation (NYSE: NSM - News) today reported GAAP net income of $85.6 million, or 24 cents per share, on revenues of $493.8 million for the first quarter of fiscal 2006, which ended August 28, 2005.
ADVERTISEMENT
On a sequential basis, National's Q1 revenues rose 5.7 percent from the fourth quarter, when the company reported $467 million in revenues and earnings of 36 cents per share. Year over year, National's first quarter sales declined 10 percent from the first quarter of fiscal 2005, when the company reported sales of $548 million, net income of $117.7 million and earnings of 31 cents per share.
First quarter gross margin rose 1.5 percentage points to a record 56.2 percent on the strength of increased sales of National's higher-value analog products. This compares to the 54.7 percent gross margin reported in Q4 and 52.7 percent gross margin reported in Q3.
"Our business was stronger than expected in the first quarter," said Brian L. Halla, National's chairman and CEO. "Sales were up, bookings were up and our backlog was up going into the second quarter. Overall, we're seeing strong demand for analog products, particularly from our wireless and flat panel display customers."
Noteworthy Items Included in GAAP Net Income
National's Q1 net results included several noteworthy pre-tax financial events, including a $28 million charge (primarily for severance) related to the in-progress closure of National's assembly and test plant in Singapore; and a $24.3 million gain related to the sale of National's cordless business unit in Europe. National's income tax expense in Q1 also included additional one-time provisions of approximately $5 million of expense relating to notable items in the quarter.
National's Q4 2005 net results included several notable financial items, including an $86.1 million write-off of goodwill; a $51.1 million gain from the sale of National's PC Super /IO business; and a $2.6 million charge for cost reduction actions; all of these on a pre-tax basis. In addition, the company's income tax provision was a net tax benefit of $55.9 million, primarily related to deferred tax assets.
Bookings Increased Sequentially in Q1 from Q4
National's Q1 worldwide bookings increased 18 percent sequentially from Q4. Excluding bookings that came from two recently divested businesses, bookings grew 13 percent. The bookings rate in Q1 benefited from higher-than- anticipated turns orders. Total company bookings exceeded billings in the first quarter.
Bookings for National's analog standard linear products grew 14 percent sequentially. New orders for portable power management and audio products grew much higher than the company average due primarily to strong demand from customers in the mobile phone and flat panel display markets.
Regionally, bookings increased in North America and Asia Pacific. The majority of the bookings increase came from National's OEM customers. Bookings from major distributors in Q1 were consistent with the prior quarter. Distributor resales of National products to end customers increased in North America and Asia Pacific but were seasonally lower in Europe.
Analog Focus Generates Results
National continued its repositioning towards a richer analog portfolio by divesting itself of businesses that do not align with the company's business model. In May 2005, the company sold its PC Super I/O business to Winbond Electronics. In June, the company sold its cordless business unit in Europe to HgCapital. And in July, the company announced that it would close its assembly and test plant in Singapore in a phased shutdown. The Singapore plant had specialized in high pin-count packages.
"Our actions are consistent with National's ongoing program to maximize resources and support for National's core analog business," Halla said. "They also demonstrate our commitment to increase the return on invested capital for our shareholders."
Outlook for Q2, Fiscal 2006
National anticipates that revenues in the second quarter will increase approximately 5 percent from first-quarter levels. The company also anticipates that gross margin in Q2 will be similar to or slightly higher than Q1's gross margin.
National Declares Dividend
In addition to announcing first-quarter earnings, National today declared a cash dividend of 2 cents per outstanding share of common stock. The dividend is payable October 11, 2005 to stockholders of record at the close of business on September 20, 2005.
Board of Directors Approves New $400 Million Stock Repurchase Program
National's Board of Directors has authorized a new program to buy back an additional $400 million of National's stock. During Q1, the company purchased $275 million worth of National's stock authorized under a prior buy-back program.
Special Note
This release contains forward-looking statements dependent on a number of risks and uncertainties pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These factors include, but are not restricted to, new orders received and shipped during the quarter, the degree of factory utilization, the sale of inventories at existing prices, and the ramp up and sale of new analog products. Other risk factors are included in the Company's 10-K for the year ended May 29, 2005 (see Outlook and Risk Factors sections of Management's Discussion and Analysis of Financial Conditions and Results of Operations).
Summary of Results For the 3 months ended
August 2, 2005 August 29, 2004
Net sales $493.8 million $548.0 million
Net income $85.6 million $117.7 million
Earnings per diluted share $0.24 $0.31
About National Semiconductor
National Semiconductor, the industry's premier analog company, creates high-performance analog devices and subsystems. National's leading-edge products include power management circuits, display drivers, audio and operational amplifiers, communication interface products and data conversion solutions. National's key analog markets include wireless handsets, displays and a variety of broad electronics markets, including medical, automotive, industrial, and test and measurement applications. Headquartered in Santa Clara, California, National reported sales of $1.91 billion for fiscal 2005, which ended May 29, 2005. Additional company and product information is available at www.national.com.
Just got back from driving through Canada, and I was surprised at how insecure so many Canadians feel about their identity as a nation, even referring to themselves sometimes as "Mexico North."
Your hyper-sensitivity to how Canada is viewed and talked about seems to bear this out as well.
I had to listen to a whole lot of sh*t about the USA while traveling through Canada. I just smiled and kept on driving.
When was the last time Bernie was positive on anything? You follow his indicators and you'll have your head handed to you!
Hey, It's a nice day here and the king salmon are in the streams. Have a good one !!
That's what makes a market.
ps I wouldn't trust Bernie any farther than I could throw him!
I disagree. Tech is the most hated sector in the universe. People don't forget that easily what happened. Stocks in general are also hated as an asset class. Everyone wants something secure, like 10 yr treasuries yielding 4% or real estate where they can live in and cash in quickly with home equity loans.
I'm just trying to ride the cycles, and believe another good ride in tech is in the offing !
http://home.comcast.net/~gottfriedm/SEMIcharts/chipsales_SEMIbillings.gif
http://home.comcast.net/~gottfriedm/index.html
I just like to see you get all hyperventilated!
Techmeister: Semi Crossover in Crosshairs
By Richard Suttmeier
RealMoney.com Contributor
7/7/2005 1:30 PM EDT
Today I want to review how a technical theory is signaling that the tech-heavy Nasdaq and the Philadelphia semiconductor index (SOX) are poised to move higher, and then I will screen several SOX components, including Intel (INTC:Nasdaq - commentary - research), Xilinx (XLNX:Nasdaq - commentary - research) and more.
Moving-average theory is one tool of technical analysis that's easy to understand. It states that when a shorter-term moving average crosses above a longer-term moving average, the charted index or stock is poised to move higher. Today, the Nasdaq is experiencing a positive moving-average crossover on its daily chart, with the 50-day simple moving average (SMA) crossing above the 200-day simple moving average (SMA) as the two have converged as support at 2034. This compares to the Dow Jones Industrial Average, which is floundering below its 50-day and 200-day SMAs at 10,405/10,447 as resistances.
There is an anomaly in this setup and that's the Nasdaq 100 Trust (QQQQ:Nasdaq - commentary - research), which is below its 50-day and 200-day SMAs, at $37.05 and $37.24, respectively. All this indicates to me is that the 100 largest nonfinancial companies that make up the QQQQs are underperforming the broader Nasdaq. To complete the profile for the QQQQs, my models show daily support at $36.49, with monthly resistance in June at $37.93. It should be noted that this support held this morning despite the London terrorist attack.
A more important leadership crossover I have been obsessed with is the weekly chart for the SOX, which is poised for a bullish crossover last seen in November 1998. The chart below shows the five-week modified moving average (MMA) set to cross above the 200-week simple moving average (SMA) given a close this week at 430.75 or higher as these moving averages are converged at 423.72. The five-week MMA has been below the 200-week SMA since September 2001. With only two crossovers in seven years, a positive crossover now would be an extremely strong semiconductor leadership signal. Given this confirmation, my model shows a monthly pivot at 425.11, which would be support for the remainder of July.
Crossing the SOX
The semiconductor index last saw a crossover in November 1998
Screening Select SOX Components:
Applied Materials (AMAT:Nasdaq - commentary - research): The chip-equipment maker is 29.9% undervalued with a monthly value level at $16.16, a price at which my models indicate that buyers should emerge. The weekly chart profile is neutral and needs a close this week above its five-week modified moving average at $16.39 to shift its profile to positive.
In a CNBC interview in early June, CEO Michael Splinter described the firm's Uvision chip-inspection tool, which is designed to find tiny flaws during the chip-manufacturing process. The company expects demand for this product to be strong during the next chip-equipment upgrade cycle and that should come sooner rather than later given the fast evolution of the next generation of chips.
Advanced Micro Devices (AMD:NYSE - commentary - research): The chipmaker is 5.8% overvalued and trading between an annual pivot at $18.29 and a weekly resistance at $18.80. Advanced Micro reports earnings on July 13 and is expected to report a loss of 6 cents per share. The company is about to duel Intel in the courts over antitrust issues concerning dual-processor chips. In my judgment, there is room for growth for both companies, but to buy AMD now in anticipation of a favorable ruling, which could be months if not years away, seems ludicrous to me.
Intel: The chip giant is, in my judgment, one of the most important stocks in the U.S. markets as it's in the Dow, S&P 500 and the Nasdaq. Investors should recall that Intel was the best performer in the S&P 500 in 2003, so don't ignore its leadership potential. The stock is 30.6% undervalued with a weekly chart profile that's becoming overbought. My models show quarterly support at $23.95, with monthly pivots at $26.17/$26.86, and a weekly resistance at $28.34. Intel will report earnings on July 19 and is expected to report 32 cents per share.
Intel has said it anticipates "very seasonal" demand for computer chips at the beginning of the school year and for the holiday season, characterized by strong demand for PCs and other electronic devices. The company also expects strong growth to continue in the Asia Pacific region, which accounted for 47% of the firm's sales in the last quarter. Intel plans to spend $200 million in China to accelerate the use of computers and the Internet, and another $400 million in India to make chips. The company is also considering opening a plant in Vietnam, as use of computers in that country escalates.
Teradyne (TER:NYSE - commentary - research): This SOX laggard is 52.1% undervalued with a neutral weekly chart profile that needs a weekly close above its five-week modified moving average at $12.91 to shift to positive. In the event of a positive crossover for the SOX, Teradyne should regain some momentum. The company reports earnings on July 19 and is expected to report a loss of 21 cents per share.
Texas Instruments (TXN:NYSE - commentary - research) is a clear SOX leader. The stock is 21% undervalued with an overbought weekly chart profile. My model shows monthly support at $26.87 with a weekly pivot at $28.50, and weekly/monthly resistances at $30.04/$30.13. Those are the levels at which investors should consider booking profits. The company reports earnings July 25 and is expected to earn 29 cents per share.
Xilinx: This SOX laggard is 39.5% undervalued with a negative weekly chart profile as it flirts with its 52-week low at $25.20. A positive crossover on the SOX should help Xilinx trade toward my monthly resistance at $28.85. The company reports earnings July 21, and is expected to earn 21 cents per share.
Source: Athena Graphics on Telerate Plus, a Reuters product
Don't Miss The Forest From The Trees In The Jobs Report
There’s considerable debate today about what signal today’s payroll data is sending about the health of the job market. But I think, on balance, this is a good report.
First, we all get caught up in the minutiae --- I’m guiltiest of all --- yet it’s well to remember the headlines: 146,000 jobs were created in June, solidly in positive territory and it was a gain from the 104,000 (revised) jobs added in May. And the unemployment rate fell to 5%, the lowest level since Sept. 2001.
The disappointment stemmed chiefly from the failure of the number to live up to the lofty expectation for 200,000 jobs containedin the consensus forecast. But those forecasts were based on other indicators suggesting strong job growth, such as the Institute of Supply Management’s service and manufacturing reports, jobless claims and strong June retail sales reported by the likes of WalMart and others.
Remember, however, that the survey week for the jobs report is the one including the 12th of the month. It appeared that a lot of the strength we saw in June was registered in the month’s second half, perhaps too late to show up in the monthly jobs report. If so, that strength should show up in the July jobs data.
Second, the Labor Department routinely seasonally adjusts these numbers. The seasonal adjustment looked for 133,000 more jobs this June to be created before a single net job was added than it did a year ago. Bottom line for all that is the seasonals set a high hurdle for job growth in June, higher than it did a year ago. If that’s the case, it should wash out next month when the seasonals are more favorable.
I know a lot of money is gained or lost on the precision of the jobs report. But my mantra is that we should not expect something from the data that it cannot give. And the first publication of the monthly jobs report cannot provide a precise measure of job creation in that month. Over time, with revisions, the data hopefully gets closer to the truth. But the first Friday of the following month is just the first pass at the prior month’s job growth.
Frankly, from the standpoint of economics and long-term investing, it doesn’t really matter whether a job gain is reported in May, June or July. Economists were looking for 200,000 jobs to be added in June, and they got 190,000. Of those, 146,000 were reported as job growth in June and 44,000 as upward revisions to the April and May reports.
Big deal, what disappointment?
During the second quarter 591,000 jobs were created. That’s the second highest quarterly total of the past five years. I’ll take that kind of quarter any time and worry about the minutiae later.
Steve Leisman Economics Reporter
Re: top.. Not yet marketmayhem...,
not yet...
I'll let you know when...
Try to have a good weekend yourself !!
Don't watch much tv. Just stating the obvious.
You couldn't be more wrong. The fear premium never left the market after 9/11. People's memories are not THAT short.
The world is not ending, despite the wishes of marketmayhem and his ilk. Every 2 years when the terrorists strike, they seem to be getting weaker, not stronger. Market reaction is perfectly rational.
"shipment strength across all segments"
TSM Taiwan Semi: Positive Monthly Sales Momentum Supports Our Above-Consensus 2H Estimates -- Thomas Weisel
TSM reported June Sales of $641mn (+3% m/m), roughly in line with firm's estimate of $650mn (+4% m/m). For the June quarter, TSM posted $1866mn (+5.7% q/q), roughly in line with firm's above-consensus estimate of $1875mn (+ 6.2% q/q) versus Street of $1847mn. Firm notes that recent management meeting suggest shipment strength across all segments.
Just another note for the "Wheels are not falling off file."
Thanks maven, you're a real charmer..
Have you ever thought of changing your name to Eeyore ?
Winnie the Pooh - Eeyore, a very gloomy, blue-gray donkey, is stuffed with sawdust.....
Thanks Doc !
Thanks, but I'll stick with what works for me, and Goog ain't it!
You and ogm are right. The world is ending. The wheels are falling off. I am very depressed now.
So ride the cycles... the wheels keep going round and round...
while you keep hoping the wheels are going to fall off.
Memory contract prices up after half-year drop
Hans Wu, Taipei; Esther Lam, DigiTimes.com [Wednesday 6 July 2005]
The memory market has shown signs of rebounding, as contract prices for DDR, DDR2 , SDRAM and NAND flash all picked up for July, according to information gathered from trading houses and market sources.
Contract prices for 256MB DDR-400 are up 2.32% sequentially to US$22 for the first half of July, while 512MB DDR-400/333/266 prices increased 3.38% from June to US$44.3. For the 512MB DDR2-533 segment, contract prices remained flat at US$48.2, a slight on-month drop of 0.2%.
Nanya Technology raised its contract prices 5-7% for the first half of July with 256MB DDR-400 DIMMs priced at US$23. Memory makers who may offer 256Mb DDR-400 over US$2.5 should earn a satisfactory profit with such quotes, source at channel distributor commented.
Samsung Electronics also raised its 256Mb DDR-400 quotes to US$3, a price 20% higher than the average recent contract prices, according to a recent report.
Most DRAM makers expect the upward trend in the market to persist through late September, on seasonal effects. DRAMeXchange has predicted that the 256MB DDR-400 price should peak at US$24-26 in September and remain at that level until November.
In the SDRAM market, Hynix Semiconductor announced it would raise the price of its 16Mb SDRAM-166 to US$0.7 for the first half of July, according to sources from customers of Hynix. The average spot price was US$0.57 on July 6, according to DRAMeXchange. The increase in price should benefit local SDRAM design houses, including Elite Semiconductor Memory Technology (ESMT) and Etron Technology.
In line with increasing quotes in the DDR contract market, Samsung has also raised contract prices for its 4GB and 8GB NAND flash modules by US$1 dollar for the first half of July. Traders explained that with Apple recently cutting prices for its iPod Shuffle, inventory pressure has eased at the company, and it has started sourcing NAND flash again.
Source: DRAMeXchange, compiled by DigiTimes, July 2005.