OUTLOOK - Intel leads busy week for chip industry 08.07.2004 20:16 Headlines
SAN FRANCISCO (AFX) - A busy week for semiconductor investors commences next
week with quarterly financial results from Intel, Novellus Systems, and AMD,
among others.
Also, the chip-equipment industry stages its largest trade show, Semicon West,
in San Francisco and San Jose, Calif. A slew of product announcements are
expected, as well as several industry briefings.
The company everyone wants to hear from is Intel , the world's largest maker of
semiconductors, which reports its results Tuesday. In the past month, its stock
has fallen to $26 from $29 as several investment bank analysts have trimmed
their financial expectations for the Santa Clara, Calif.-based company.
The second quarter tends to be a mixed period for semiconductor manufacturers
ahead of the important back-to-school and holiday shopping periods.
In June, Intel told investors to expect second-quarter sales between $8 billion
and $8.2 billion, in the upper half of its previous financial targets.
Currently, analysts expect revenue of $8.1 billion and earnings of 27 cents a
share, on average, according to Thomson First Call.
One key to Intel's results will be flash memory, which makes up between 5 and 8
percent of its total sales. The unit has suffered during the past year, but
Intel said during its midquarter update that a turnaround is finally apparent.
Intel's primary competitor for computer microprocessors and flash memory,
Advanced Micro Devices , reports its financial results Wednesday. AMD has
expanded its flash memory business to now account for half of its total sales
base. Its memory unit posted its first profit during the first quarter.
For its second quarter target, the company in April predicted revenue of $1.24
billion, flat with the prior quarter. Analysts currently have predicted earnings
of 9 cents a share and sales of $1.24 billion.
Novellus Systems will lead off the parade with its second-quarter financial
report on Monday before the stock market opens. During a midquarter update in
May, the equipment company boosted its earnings, sales and shipments targets.
Other companies reporting next week include SanDisk , Rambus , Fairchild
Semiconductor , Cypress Semiconductor and PMC-Sierra .
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
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