Novellus Narrows 3Q View To Loss 9 Cents/Share To Break-Even
03 Settembre 2009 - 11:52PM
Dow Jones News
Novellus Systems Inc. (NVLS) narrowed the range of its expected
third-quarter per-share loss to 9 cents to break-even, from 15
cents to break-even, as conditions in the semiconductor sector
continue to improve.
The company, which makes the tools that make chips, also raised
estimates for revenue for the remainder of the year, and now
expects it will swing to a fourth-quarter per-share profit.
Novellus shares were recently up 3.7% to $19.79 in after-hours
trading.
"We see significant improvement in our business for the second
half of the year," said Novellus Chief Executive Richard Hill.
Chip tool makers are beginning to see signs of recovery after
years of falling sales and mounting losses. Novellus and others
have been hit hard by a supply glut in the market for memory chips
that forced its customers to slow production and halt purchases of
new equipment.
But rising prices of memory chips suggest supply is beginning to
match demand, meaning some chip makers will have more money to
spend on equipment. And the broader chip sector is showing signs of
recovery as well, with bellwether Intel Corp. (INTC) last week
raising its outlook for the third quarter.
For the third quarter, Novellus now expects revenue of $160
million to $180 million, with order bookings for its equipment up
40% to 55%.
Analysts, on average, expected a third-quarter loss of 6 cents a
share on revenue of $168 million, according to Thomson Reuters.
Hill also offered estimates for the fourth quarter due to what
he called a "material difference" between internal forecasts and
Wall Street's outlook. The company expects fourth-quarter earnings
of 10 cents to 20 cents a share on revenue of $200 million to $230
million. Analysts expected, on average, fourth-quarter per-share
earnings of 1 cent and revenue of $181 million.
-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155;
jerry.dicolo@dowjones.com