projected that second-quarter results will come in at the low end of its earlier estimates, and the company said it will cut costs this year amid weakening chip-equipment demand.
The San Jose, Calif.-based company said second-quarter bookings, shipments, revenue and earnings all should be toward the low end of its guidance given during a midquarter update May 31. At the time, Novellus forecast earnings of 42 cents to 45 cents a share and revenue of $410 million to $420 million.
Analysts, on average, project earnings of 44 cents a share and revenue of $415 million.
The chip-equipment maker said it anticipates weakening industry demand, and as a result, it plans to make cost cuts, such as the reduction of salaries and company shutdowns in both the third and fourth quarters.
Novellus will report second-quarter results on July 16.
Shares recently were down 45 cents, or 1.5%, to $29.45.