Updated from 4:33 p.m. EDTNovellus Systems ( NVLS) pushed sales and earnings up sharply in the second quarter, handily beating Wall Street's expectations. The chip-equipment maker also issued guidance for the third quarter that was significantly higher than analysts' estimates. Novellus grew net income in the second quarter by nearly 59%, increasing to $52.7 million, or 42 cents a share, from $33.2 million, or 24 cents a share, in the same quarter last year. Net sales jumped 24% to $410.1 million. Analysts polled by Thomson First Call were expecting a profit of 38 cents a share on sales of $404 million. Bookings increased sequentially by nearly 10% to $457.5 million while shipments increased by 29% to $457.3 million, the company said after Wednesday's closing bell. Turning to the third quarter, the company said to expect a profit ranging from 49 cents to 52 cents a share on sales ranging from $440 million to $450 million. Analysts were looking for EPS of 40 cents on net sales of $421.3 million. Gross margins, which increased by 2 points sequentially in the first quarter to 50%, should increase by another 50 basis points to 50.5%, the company said. In recent after-hours trading on Instinet, shares were up 61 cents, or 2.5%, to $25.04.