Chip equipment maker Novellus Systems ( NVLS) on Monday said it earned 62 cents a share in the first quarter excluding certain items, beating analysts' expectations. According to Thomson Financial/First Call, analysts had expected earnings of 61 cents a share. The San Jose, Calif., maker of equipment used in semiconductor fabrication said that including a $13.2 million charge for merger-related costs, earnings per share were 55 cents. A year earlier the company earned 17 cents a share and it earned 68 cents a share in the fourth quarter. Revenue, meanwhile, rose to $458.7 million in the first quarter from $220 million a year earlier and from $442.7 million in the fourth quarter. Despite these results, Novellus said in a statement that it was a tough quarter due to the decline in spending by the semiconductor companies that have seen demand for their own products decline, decreasing their need and desire for more equipment. Richard Hill, chairman and chief executive, said in a statement that the first quarter showed a global slowdown in chip equipment spending, and he described it as "the most rapid decline we have seen in this industry." During a conference call, the company said that second quarter earnings would total 40 cents a share on revenue of $379 million. Analysts were expecting earnings of 39 cents a share, according to First Call.
More from Technology
Apple Petitions Trump to Give Tariff Exclusion on Mac Pro Components
The company announced plans to re-locate production of the line to China from Texas.
Google Stock Hasn't Done Much in 2019 -- Will Earnings Change That?
Hey Google -- Anyone Home? Here's what Google needs to show investors on its earnings report.
Snap Makes a Big Spectacle, But What's the True Picture?
The analysts are all in for SNAP, but expectations are for a clunky quarter and average revenue per user has been running well below social media peers -- here's how I would play into earnings.
A $1 Billion-Plus Apple Deal for Intel's Modem Business Could Eventually Pay Off
Though it would likely take a while for Apple to begin using its own 5G modem, doing so could yield major cost savings and also carry other benefits.