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Novellus Trims Sales View

It sees fourth-quarter revenue of $305 million to $315 million.
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traded down Tuesday after trimming its fourth-quarter revenue guidance in an otherwise positive midquarter update.

The chip-equipment maker sees fourth-quarter sales of $305 million to $315 million and said bookings in the period will rise 5% to 10% from the third quarter. The company had previously predicted revenue of $305 million to $322 million and bookings that were flat to up 10% sequentially.

Novellus expects to earn 15 cents to 17 cents a share in the quarter including the impact of excess warranty charges in the period. The company said the fourth quarter probably will be the "high water mark" for such expenses.

Analysts surveyed by Thomson First Call were expecting the company to earn 16 cents a share in the quarter on sales of $315.7 million.

In after-hours Instinet trading, Novellus shares recently fell 58 cents, or 2.4%, to $23.50.

The company said fourth-quarter shipments should be $290 million to $300 million.

Rick Hill, the CEO, said on a conference call, "We see going forward steady demand with modest cyclicality with slower growth, but still growing."