SAN FRANCISCO -- Semiconductor equipment maker Novellus ( NVLS) surpassed analysts' forecasts for the third quarter, even as its net income and revenue fell. Net income tumbled to $49.7 million, or 41 cents a share, from $70 million, or 57 cents a share, in the year-ago period. But that beat analysts' average estimate of 38 cents a share, according to Thomson Financial. Revenue fell 5.5% to $393.3 million, slightly ahead of analysts' consensus estimate. "The results for this quarter were as expected. We continue to control our operating expenses during the current slowdown and to enhance our product portfolio," said CEO Richard S. Hill in a statement. "We feel while the industry is currently in a state of flux, we are well positioned for the next upturn." In recent after-hours trading, shares were falling 75 cents, or 2.7%, to $26.88.