How Many Semi Cap Equipment Companies Will Disappear?

No part of the tech sector has been harder hit than the semiconductor equipment stocks. Makes you wonder how many of the players will simply disappear.

Carl Johnson, who runs the industry research boutique Infrastructure, points out that there are a host of smaller players in trouble:

• IBIS Technology (IBIS.PK) holders on Monday announced that the company’s holders have voted to liquidate. The stock on Tuesday closed at 5 cents. IBIS, which made implantation equipment, once traded as high as $125 a share.


• Axcelis (ACLS) missed paying $85 million in notes in mid-January; it is holding talks with its lenders. An ion implant company, Johnson suggests it might be the next to go. Unless someone else files bankruptcy first. ACLS, which in 2000 traded north of $25, is now at 27 cents.


• Aviza Technology (AVZA) on Tuesday posted results for its fiscal first quarter ended December 26; sales of $25.2 million were down from $35.5 million in the September quarter. For the March quarter, he sees revenue dropping to $13 million to $18 million. Aviza said it would no longer be holding financial conference calls.


• Asyst (ASYT) on Tuesday unveiled results for the fiscal third quarter ended December. Sales in the quarter of $83 million, down from $95.1 million in the previous quarter. For the March quarter, the company sees sales dropping to $65 million to $75 million. The company said that as of the end of the March quarter, it will likely need a waiver or amendment of certain covenants of its bank loans.


• Johnson notes that Ultra Clear Technology (UCTT) has shut down for the first 2 weeks of February, with another week shutdown coming in March. In late January, the company cut its financial guidance.

Meanwhile Johnson writes that he’s learned that industry giant Applied Materials (AMAT) will shut down for 1-3 weeks more in April - and that the company has blocked off June 8 to July 6 for a shutdown. As Johnson notes, “that a long time and does not bode well for a second half recovery.”