Semitool Rises on Brokerage Comments
By Cindy Christ

Shares in Semitool got a leg up Friday from Robertson Stephens, which raised its business outlook for the chip equipment maker and the semiconductor capital equipment market.

Semitool (SMTL) moved up $3.56, or 8.3 percent, to close at $46.44 on low volume.

In a research note, semiconductor analyst Sue Billat reiterated her "buy" rating on Semitool shares and raised profit estimates for fiscal year 2000.

"We believe Semitool is seeing robust strength across its business lines in cleaning and electroplating for copper as well as for other applications," said Billat.

"We are particularly pleased with the company's recent wins for plating tools at two major U.S. chipmakers," she added.

Billat said that Semitool trades at a discount to its peers and is benefiting from the current boom in chip sales and the early stages of a multi-year upcycle in the semiconductor capital equipment industry.

For fiscal year 2000, Billat raised her earnings-per-share estimate to $1.35 from $1.20 on revenues of $228.1 million, up from $212 million.

For 2001, Billat set earnings of $1.09 on revenues of $277 million.

In January, Semitool posted first quarter 2000 net sales of $49.6 million, up 36 percent from the previous quarter and 63 percent from a year ago.

First-quarter net income was $3.7 million, or 27 cents per share, compared to $98,000, or 1 cent per share, for the previous quarter, and a net loss of $1.1 million, or 8 cents per share, for the same quarter a year ago.

The company said new order bookings hit a record $62.4 million, up 41 percent sequentially and 185 percent from the same period last year, led by rapid growth in bookings in Asia Pacific and Europe.

Orders backlog at year-end 1999 moved up to $70.4 million, 22 percent higher than the beginning of the quarter and up 217 percent from the same time last year.

Gross margin also increased to 52.1 percent, versus 44.9 percent for the previous quarter and 48.4 percent a year ago.

On March 1, Semitool's board of directors approved a 2-for-1 stock split for shareholders of record March 14. The split takes effect around March 29.

After the split, Semitool will have about 27.2 million shares outstanding.

Kalispell, Mont.-based Semitool designs, manufactures, markets, and services gear used in the chip making process, including wafer preparation and cleaning equipment, electrochemical deposition tools for copper and other metal applications, thermal processing equipment, and software control systems.

Shares in semiconductor stocks moved up across the board Friday and were the market's best performers. The Philadelphia Stock Exchange Semiconductor index (SOX) soared 42.5 points, or 3.3 percent, posting a new closing high of 1332.73.

Year-to-date, the SOX is up around 90 percent. In comparison, the Nasdaq has gained about 26 percent since January.