First semi equipment bookings drop, next come the pushouts

Dr. Robert Castellano, The Information Network.

NEW TRIPOLI, USA: SEMI announced its latest book-to-bill ratio. Pretty dismal!. Bookings were down from $1,837 million in July and $1,816 million in August to $1,616 million in September.

Keep in mind that these are THREE MONTH AVERAGES. So, if you look at the strong performance in July and August, then September must have been in the loo.

We noted to our readers on June 28 in an Insight piece - Watch for a slowdown in semiconductor equipment sales. We also noted to our readers on August 10 in an Insight piece -Semiconductor Equipment Pushouts Imminent.

We reiterated the warning on August 12 in my column on TheStreet.com.

While other “analysts”, stockholders, and executives were pointing up saying “the sky’s the limit”, our feet were firmly planted on the ground, giving a strong dose of reality. That was two to three months ago! Nobody believed us.

Maybe now you will!