North American semi equipment bookings decline 37% y/y, SEMI reports – 6/20/2008 – Electronic News

North American semi equipment bookings decline 37% y/y, SEMI reports
The industry produced a book-to-bill ratio of 0.79, which means that $79 worth of orders was received for every $100 of product billed for the month.
By Ann Steffora Mutschler, Senior Editor — Electronic News, 6/20/2008

Continuing its downward slide and approaching levels observed in 2005, which was the last time the semiconductor industry reported a year-over-year decline, North America-based manufacturers of semiconductor manufacturing equipment posted $1.03 billion in orders in May on a three-month average basis, resulting in a book-to-bill ratio of 0.79, according to industry association Semiconductor Equipment and Materials International (SEMI) late Thursday.

A book-to-bill ratio of 0.79 means that $79 worth of orders was received for every $100 of product billed for the month, SEMI reminded.

The three-month average of worldwide bookings in May dropped approximately 5% from the final April level of $1.09 billion, and approximately 37% less than $1.64 billion in orders posted in May 2007, SEMI pointed out.

In terms of billings, the three-month average in May was $1.31 billion, which is about 2% less than the final April level of $1.34 billion, and about 21% less than the May 2007 billings level of $1.67 billion.

On a worldwide basis in Q1, although bookings for semiconductor manufacturing equipment weakened, overall industry billings remained at levels higher than the end of last year, SEMI said this week.

Still, “Bookings are approaching levels observed in 2005, which was the last time the semiconductor industry reported a year-over-year decline. The data does not indicate a change in this trend over the next quarter,” commented Stanley T. Myers, president and CEO of SEMI, in a statement.

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

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