UPDATE:Novellus CEO: Chip Equipment Market May Have Reached Bottom
22 Aprile 2009 - 11:58PM
Dow Jones News
Novellus Systems Inc. (NVLS) Chief Executive Richard Hill said
the chip equipment market may have reached a bottom and provided
second-quarter guidance above Wall Street estimates.
Novellus expects to post a second-quarter non-GAAP per share
loss of 35 cents to 45 cents on revenue of $110 million to $125
million. Analysts, on average, were expecting a loss of 45 cents a
share on revenue of $104.8 million, according to Thomson
Reuters.
Novellus shares were recently up 4.3% to $18 in after-hours
trading on the outlook and optimistic comments from Hill in a
conference call to discuss first-quarter results.
"Electronics and semiconductor markets have stabilized in the
last six weeks," Hill said. He cautioned however, that Novellus is
still operating at "anemic levels."
Hill's comments mark a significant change in tone for the
executive who only months earlier called the situation in the chip
equipment market a "nuclear winter."
Novellus, which makes the tools used to produce semiconductors
and other electronics products, has suffered along with its rivals
as capital spending from chip makers has virtually ceased amid
slumping demand and oversupply conditions in the memory chip
markets.
The company reported first-quarter results Wednesday that were
in line with earlier estimates for significant losses. In February,
the company slashed its first-quarter outlook. Second-quarter gross
margins are expected to be 31% plus or minus 2% and bookings will
be up 20% to 50%.
Hill also said gross margins will continue to rise through 2009
with every dollar added in revenue.
Additionally, Hill questioned the need for consolidation in the
industry at the moment.
"What value is there in combining with entities that may be too
weak to survive?" Hill asked. "I wouldn't say we are going to rush
out," into purchases or partnerships, he added.
-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com