Bookings and billings at levels comparable to 2003, SEMI reports

By Suzanne Deffree, Managing Editor, News -- 11/19/2008

SEMI today released its October book-to-bill ratio, showing a month-on-month gain amid the industry downturn, but also showing continuing year-on-year declines.

According to the group's data, North America-based manufacturers of semiconductor equipment posted $843 million in orders in October and a book-to-bill ratio of 0.93. A book-to-bill of 0.93 means that $93 worth of orders were received for every $100 of product billed for the month.

In September, the North American semiconductor equipment industry posted a book-to-bill ratio of 0.76, representing significant declines.

The three-month average of worldwide bookings in October 2008 was $843 million, about 30% greater than the final September level of $650 million. However, the figure is about 28% less than the $1.18 billion in orders posted in October 2007.

The three-month average of worldwide billings in October was $908 million, 2% below the final September level of $927 million and about 39% less than the October 2007 billings level of $1.48 billion.

“While three month average bookings improved in October, overall bookings and billings for North American equipment manufacturers are at levels comparable to 2003,” said Stanley T Myers (pictured), president and CEO of SEMI, in a statement. “Our industry will have to look to the early part of 2009 for clearer signals of market direction."

SEMI's report came on the heels of an announced KLA-Tencor layoff that will impact about 900 of the capital equipment vendor's employees. Applied Materials has also announced a workforce reduction, saying some 1,800 jobs will be cut.

SEMI's report also follows on estimates from Gartner Inc, in which the market research company said its 2009 capital spending expectations have been reduced from $41.1 billion to $39 billion and its 2009 total equipment spending expectations have been reduced from $30.5 billion to $26.8 billion. Gartner estimated that the capital equipment industry will see a quarterly revenue bottom in mid-2009, at $6.3 billion, which is a level not seen since Q4 2003.

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