Novellus Matches Earnings Estimates - TheStreet

Novellus Matches Earnings Estimates

The company is cautiously optimistic on third-quarter bookings.
Publish date:

Updated from 5:01 p.m. EDT

Novellus Systems'


second-quarter earnings fell from a year ago, but the company said it was cautiously optimistic that bookings will increase in the current quarter.

The semiconductor-equipment maker said second-quarter sales rose to $239.1 million from $238.4 million in the first quarter and $222.1 million a year ago. Novellus earned $7.4 million, or 5 cents a share. In the same period a year ago, the company earned $12 million, or 8 cents a share.

Shipments totaled $226.5 million in the second quarter, down 3.7% from the first quarter. Deferred revenue at the end of the second quarter was $114.4 million, a decrease of 9.9% from the end of the first quarter.

As a result of a new accounting rule, the company will change the way it treats its facility leases. Novellus expects to record a noncash after-tax charge in the third quarter of about $63 million. The accounting change will also reduce earnings per share by about 4 cents.

The company said the second-quarter results were as expected. "Japan bookings for the quarter were a bright spot," Novellus said. "We are cautiously optimistic that bookings will increase in the third quarter as we are seeing a rebound in the PC industry and parts of the telecommunications industry."

Analysts polled by Thomson First Call were expecting a profit of 5 cents in the second quarter, and Wall Street is looking for 5 cents again in the third quarter.

Shares of Novellus were slipping 12 cents to $34.43 in Instinet late trading after the closing bell.

Novellus also projected third-quarter revenue of $220 million, below the consensus estimate of around $229 million.