Barclays on U.S. Display & Lighting: Previewing Our Global Technology Conference
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Barclays on U.S. Display & Lighting: Previewing Our Global Technology Conference
Barclays analyst, Olga Levinzon, said, "MOCVD Equipment Players Veeco (Nasdaq: VECO) and Aixtron (Nasdaq: AIXG): We expect both VECO and AIXG to reiterate continued industry-wide weakness in MOCVD demand, with limited visibility to an order recovery. Despite some rush orders at select LED makers, we believe utilization levels remain depressed across the board. In China, we believe numerous tools remain unused, and as players begin to exit the industry/consolidate in 2012, we see a used tool market impacting demand for new tools (particularly in China)."
"Fiber Laser Supplier IPG Photonics (Nasdaq: IPGP): We look for IPG to discuss still solid demand trends in the high power laser segment, with most of the near-term weakness being seen in the pulsed laser market for marking and engraving. This said, we do believe that typical seasonal weakness in 1Q12, coupled with a general slowdown in industrial spend (recent PMI data continues to be flat to down in the U.S., Europe, and China), may drive a reset to expectations for 1H12. We see the focus for shares from here being the timing/magnitude of the earnings trough."
"PCB/LCD Equipment Supplier Orbotech (Nasdaq: ORBK): We look for ORBK to highlight continued solid trends in the PCB segment, aided by demand for high-end PCBs for smartphones as well as incremental revenue contribution from the touch screen market. On the LCD equipment side, however, we look for a 30+% decline in Orbotech's Display revenues, with BOE currently tracking to be the only panel maker adding large-sized panel capacity in 2012. We note that AMAT's trough-level Display orders in Oct Q likely reflect a similar bookings drop at ORBK, and we therefore do not anticipate an earnings inflection until 2Q12 at the earliest."
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Barclays analyst, Olga Levinzon, said, "MOCVD Equipment Players Veeco (Nasdaq: VECO) and Aixtron (Nasdaq: AIXG): We expect both VECO and AIXG to reiterate continued industry-wide weakness in MOCVD demand, with limited visibility to an order recovery. Despite some rush orders at select LED makers, we believe utilization levels remain depressed across the board. In China, we believe numerous tools remain unused, and as players begin to exit the industry/consolidate in 2012, we see a used tool market impacting demand for new tools (particularly in China)."
"Fiber Laser Supplier IPG Photonics (Nasdaq: IPGP): We look for IPG to discuss still solid demand trends in the high power laser segment, with most of the near-term weakness being seen in the pulsed laser market for marking and engraving. This said, we do believe that typical seasonal weakness in 1Q12, coupled with a general slowdown in industrial spend (recent PMI data continues to be flat to down in the U.S., Europe, and China), may drive a reset to expectations for 1H12. We see the focus for shares from here being the timing/magnitude of the earnings trough."
"PCB/LCD Equipment Supplier Orbotech (Nasdaq: ORBK): We look for ORBK to highlight continued solid trends in the PCB segment, aided by demand for high-end PCBs for smartphones as well as incremental revenue contribution from the touch screen market. On the LCD equipment side, however, we look for a 30+% decline in Orbotech's Display revenues, with BOE currently tracking to be the only panel maker adding large-sized panel capacity in 2012. We note that AMAT's trough-level Display orders in Oct Q likely reflect a similar bookings drop at ORBK, and we therefore do not anticipate an earnings inflection until 2Q12 at the earliest."
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