Top 10 Worldwide Semiconductor Test & Measurement Companies

Electronic News, August 19, 2002

TOP 10 Worldwide Semiconductor Test &  Measurement Companies(Ranked by
CY 2002 First-Half  Revenue)

                                      2002 Sales
Rank  Company (Rank 2001)           ($ Millions)

1     KLA-Tencor (1)                     730.3
2     Advantest (2)                      312.3 *
3     Teradyne (1) (3)                   279.0 *
4     Agilent Technolagies (2) (4)       230.6 *
5     Schlumberger (5)                   134.0 *
6     Credence Systems (2) (9)            73.3
7     LTX (2) (6)                         55.7
8     Tektronix (8)                       41.2 *
9     National Instruments (10)           37.6 *
10    Veeco instruments (--)              26.8 *

* Reed Research Group estimate

(1) Teradyne acquired GenRad in October 2001.

(2) Sales are for the six months ending April 30

Source: Reed Researhc Group

1. KLA-Tencor

San Jose, CA

Nasdaq: KLAC

www.kla-tencor.com

Fiscal Year End

June

First-Half CY 2002 Test

Equipment Revenue

$730.3 million

Revenue From Test Equipment Sales

100%

FY Total Revenue


2002  $1,673M
2001  $2,104M
2000  $1,499M
Revenue by Region (FY 2001)


United States  34%
Europe         19%
Asia/Pacific   47%

Bottom-line

KLA-Tencor retained both its No. 1 position and its considerable lead over the next closest competitor. Economic times were tough, though, with KLA-Tencor experiencing a sales decline of 22 percent in the last year and an earnings per share decline of 43 percent. Despite this, the company reported that it ended the fiscal year with six months of backlog, with the strongest order levels coming from the United States.

2. Advantest

Tokyo, Japan

NYSE: ATE

www.advantest.co.jp

Fiscal Year End

March

First-Half CY 2002 Test

Equipment Revenue

$312.3 million (estimate)

Revenue From Test Equipment Sales

87%

FY Total Revenue


2002  $718M
2001  $2,078M
2000  $1,584M
Revenue by Region (FY 2001)


North America  20%
Europe         9%
Japan          40%
Asia/Pacific   31%

Bottom-line

Holding steady at the No. 2 spot,

Advantest also maintained its stronghold in the memory test market, with a 60 percent market share. The company is hopeful for increased demand in high-speed networks and digital devices, which would trickle down to the company's test market. However, near-term expectation is for weak consumer demand in Japan--the company's second-largest market.

3. Teradyne

Boston, MA

NYSE: TER

www.teradyne.com

Fiscal Year End

December

First-Half CV 2002 Test

Equipment Revenue

$279.0 million (estimate)

Revenue From Test Equipment Sales

50%

FY Total Revenue


2001  $1,441M
2000  $3,044M
1999  $1,791M
Revenue by Region (FY 2001)


United States  51%
Europe         18%
Japan          4%
Taiwan         11%
South Korea    1%
Rest of World  15%

Bottom-line

Boston-based Teradyne retained its No. 3 position thanks in part to its October 2001 acquisition of GenRad, which ranked No. 8 last year. Financially, Terdyne has seen a sequential improvement in this calendar year on some fronts--sales grew 25 percent; the net loss narrowed by 30 percent--while others have suffered. So far this year, the company has seen order cancellations grow from $28 million in Q1 to $44 million in Q2--and executives say Teradyne's customers are still uncertain about the future.

4. Agilent Technologies

Palo Alto, CA

NYSE: A

www.agilent.com

Fiscal Year End

October

First-Half CY 2002 Test

Equipment Revenue

$230.6 million * (estimate)

(*Revenue is for the six months ending April 30)

Revenue From Test Equipment Sales

8%

FY Total Revenue


2001  $8,396M
2000  $10,773M
1999  $8,331M
Revenue by Region (FY 2001)


United States  40%
Japan          13%

Rest of World  47%

Bottom-line

Agilent President and CEO Ned Barnholdt believes market conditions have stabilized. Though the company lost $112 million in the quarter that ended in April, Agilent said net orders were up 9 percent--its second consecutive quarter of gains after five quarters of decline. The company also has improved its balance sheet, with reduced inventory and capital spending.

5. Schlumberger

New York, NY

NYSE: SLB

www.slb.com

Fiscal Year End

December

First-Half CY 2002 Test

Equipment Revenue

$134.0 million (estimate)

Revenue From Test Equipment Sales

2%

FY Total Revenue


2001  $13,746M
2000  $9,612M
1999  $8,394M

Revenue by Region (FY 2001)

N/A

Bottom-line

Don't expect Schlumberger to be on this list next year. The European conglomerate announced last fall that it would spin out its Semiconductor Solutions division, which includes its equipment business, after failing to secure a buyer for the division. NPTest, as it is called, has filed an 51 form--the precursor to an IPO--with the SEC, but the company will wait until the investment market improves. The company is hopeful that the IPO could occur this year.

6. Credence Systems

Fremont, CA

Nasdaq: CMOS

www.credence.com

Fiscal Year End October

First-Half CY 2002 Test Equipment Revenue

100%

$73.3 million *

(*Revenue is for the six months ending April 30)

Revenue From Test Equipment Sales

FY Total Revenue


2001  $302M
2000  $680M
1999  $197M
Revenue by Region (FY 2001)


United States  39%
Europe         23%
Asia/Pacific   38%