North American equipment book-to-bill indicates lower capexs

By Suzanne Deffree, Managing Editor, 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.

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