SEMI book-to-bill ratio climbs above parity for first time since January 2007

The July numbers are significant as they mark the first time this year and, furthermore, the first time in more than two years that the ratio has reached parity.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 8/19/2009

North America-based manufacturers of semiconductor equipment posted $569.7 million in orders in July and a book-to-bill ratio of 1.06, according to the July book-to-bill report published this week by SEMI.

A book-to-bill of 1.06 means that $106 worth of orders were received for every $100 of product billed for the month.

The July numbers are significant as they mark the first time this year and, furthermore, the first time in more than two years that the ratio has reached parity. While SEMI's tone was optimistic in reporting the data, the industry group remained cautious.

"The increases in both bookings and billings reported by North American equipment manufacturers boosted the book-to-bill ratio above parity for the first time since January, 2007,” said Stanley T Myers, president and CEO of SEMI, in a statement. “Even with that improvement, however, bookings remain significantly below year-ago figures.”

According to SEMI, the three-month average of worldwide bookings in July was $569.7 million. That figure is about 62% greater than the final June level of $351.7 million but still about 36% less than the $889 million in orders posted in July 2008.

SEMI reported that the three-month average of worldwide billings in July was $538 million, an increase of just more than 22% on the June level of $440.5 million and about 50% less than the July 2008 billings level of $1.077 billion.