North American equipment book-to-bill indicates lower capexs

SEMI's December 0.89 book-to-bill figure followed a November figure of 0.82, continuing to creep the ratio upward month over month, but bookings are down year over year, reflecting the general expectation that capital expenditures will be lower in 2008.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 1/18/2008

SEMI Thursday reported its most recent book-to-bill ratio for North American-based semiconductor equipment manufacturers, stating that the numbers are indicative of lower 2008 capital expenditures for the industry.

According to the industry association, North American-based semiconductor equipment manufacturers posted $1.23 billion in orders in December 2007 and a book-to-bill ratio of 0.89.

A book-to-bill of 0.89 means that $89 worth of orders were received for every $100 of product billed for the month, the industry association explained.

The December book-to-bill figure followed a November 2007 figure of 0.82, inching the ratio upward, just as November did compared to October level. 

SEMI reported that the three-month average of worldwide bookings in December was $1.23 billion, a final bookings figure about 9% above the final November level of $1.13 billion. However, the figure is 18% less than the $1.5 billion in orders posted in December 2006.

The 3-month average of worldwide billings in December was $1.38 billion, a billings figure flat with the November level of $1.38 billion and about 7% percent less than the December 2006 billings level of $1.48 billion.

"In 2007, North American equipment makers experienced a modest 2% growth in their global billings," said Stanley T. Myers, president and CEO of SEMI, in a statement released Thursday. "Most recent booking levels are 18% below 1 year ago, and reflect the general expectation that capital expenditures will be about 10% lower in 2008."

The SEMI book-to-bill is a ratio of 3-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.