Semiconductor processing equipment maker

Novellus Systems

(NVLS)

was down about 10% last week despite reporting a surge in new chip-equipment orders for the current quarter. Investors bid down the stock on concerns that the company offered no order guidance for the second half of the year after months of wishful talk of an impending recovery. The company said its current quarter orders would be about 57% higher than the previous quarter, but claimed sustainable sales growth would depend on a recovery in corporate IT spending. The company offered no guidance on when that spending would pick up. U.S. Bancorp Piper Jafffray analyst Gregor Konezny said Novellus will find it a "challenge" to show meaningful sequential order growth in the September quarter, and that "we may see a pause in order growth later this year until a broader chip recovery drives the next leg of the cycle."