After a tumultuous 2006, ASM International could be renamed ‘Houdini Technologies' as it fended off an investor revolt with improved Front-end equipment sales performance and a degree of concessions to investors over its operational transparency!

Before the company reports fourth quarter financials, it has wisely provided an update to its front-end operations, which could lead to profitability in 2007, after five years or so of losses.

ASMI noted in a press release today that order bookings for its vertical furnaces as well as ALD tools were a major part of the increased bookings. With memory manufacturers making up at least 50 percent of equipment purchases in 2007 by value, and the strong supply of the two products to the memory makers, ASMI is, I am sure, thanking them as much as they can!

But with memory spending believed to be front-end-of-year-loaded, ASMI stated that 2H07 visibility isn't that great. But the flip side is that they have the orders from Intel Corp. to realize due to the ramp 45nm later in the year with its low-k offerings.

With back-order revenues and new bookings now in place, the claims that the front-end division will turn a profit in 2007 look reasonable. That is a long way away from the situation the company faced at its AGM mid-last year, which could have seen the company sell off that division.

Like the ‘master of magic,' ASMI has yet to reveal the name of the company that purchased NuTool from it. My initial enquires went straight to Tokyo Electron, due to the fact that TEL had a sales/marketing/service contract with the start-up, before ASMI purchased the company a few moons ago now. TEL was quick to respond that they had not purchased the IP, so the mystery remains as to the identity of the buyer, even more so because that the buyer hasn't said anything either! At least not publicly.

Anyway, should Arthur Del Prado write an autobiography, I would recommend the working title to be "Me, My Company & Houdini." (Copyright © me, 2007)