UMS Holdings

[Boon]

Applied Materials 4Q2013 result (ending 27 October 2013) was announced yesterday (14th Nov 2013).

Revenue went down 2.3% QoQ (for SSG)
New order went up 16% QoQ (for SSG)

SSG : Revenue (USD million):
1Q2013 = 969
2Q2013 = 1,291
3Q2013 = 1,272
4Q2013 = 1,243 ( 2.3% lower than 3Q2013)

SSG : New Orders (USD million)
1Q2013 = 1,363
2Q2013 = 1,551
3Q2013 = 1,203
4Q2013 = 1,390 ( 16% higher than 3Q2013)

SSG : Backlog (USD million)
1Q2013 = 1,071
2Q2013 = 1,265
3Q2013 = 1,173
4Q2013 = 1,320 (This is 13% higher than 3Q2013)

Brief summary:
- For AMAT + TEL merger, management remained confident that approval for the merger will be received in the mid to second half of 2014.
- mobility trend remains the main growth driver
- Fiscal 2013 was the year when AMAT built momentum for profitable growth……. “ Today we have positive momentum in our markets as major trends play to our strengths and we have a very strong pipeline of differentiated product to grow our wafer fab equipment share and enter new markets. We have positive momentum with customers and a strong pull for earlier router and deeper collaboration to enable their future devices with our materials engineering solutions.”
- In short, management is positive and optimistic on business outlook going forward.


Applied Materials' CEO Discusses 4Q 2013 Results - Earnings Call

(Transcript)
http://seekingalpha.com/article/1841812-...art=single

(Webcast)
http://seekingalpha.com/article/1834552-...e_readmore
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Comments:
1) Further confirmation that the “breather” is over for the time being – going forward, if things played out as per Gartner’s report, the next few years are going to be really good for the industry.
2) UMS’s revenue is only about 2% of SSG’s revenue. If AMAT (with or without TEL) could increase it by just another 1% to 3% of SSG’s revenue, it would mean an 50% increase in revenue for UMS – which is very significant.

On the flip side, if it were to be reduced by 1%....................haha! One industry, one customer - this is "Concentration risk" which investors of UMS have to live with.

(Vested)