Novellus Reports Improving Demand

NEW YORK (AP) — Novellus Systems Inc. reported improving demand for its semiconductor equipment, narrowing its sales and earnings forecast for the quarter and giving upbeat projections for the next.

The San Jose, Calif.-based company told analysts in a conference call late Thursday it now expects sales between $160 million to $180 million for the three months ending in September. The previous range was $150 million to $180 million.

It expects to post a loss of 9 cents per share to break-even, up from a loss of 15 cents per share to break-even.

For the fourth quarter, Novellus said it expects a profit of 10 cents to 20 cents per share on sales of $200 million to $230 million.

Analysts polled by Thomson Reuters expect a loss of 6 cents per share for the third quarter on sales of $167.8 million. For the fourth quarter, analysts are looking for a profit of a penny per share and sales of $181.3 million.

On the conference call, CEO Richard Hill said the improving demand is being driven by a stronger forecast for PC sales.