UPDATE 1-Novellus third-quarter nearly quadruples
(Adds analyst comments, details)
SAN JOSE, Calif., Oct 16 (Reuters) - Chip equipment maker Novellus Systems Inc. (NASDAQ: NVLS), on Monday said
third-quarter earnings almost quadrupled, matching Wall Street estimates, as sales more than doubled.
San Jose, Calif.-based Novellus earned $85.3 million, or 62 cents a share, compared with $21.8 million, or 18 cents, during
the same period the previous year.
The consensus analyst estimate was 62 cents a share, according to research firm First Call/Thomson Financial.
Sales rose to $359.1 million from $154.9 million in the year-ago quarter.
"People expected them to beat by a couple of cents but the perceived shortfall in revenue was the main reason for the decline"
in the stock price, said Eric Ross, an analyst at Thomas Weisel Partners.
Novellus shares fell $5-5/8 to $34-7/8, before trading was halted when the earnings release inadvertently was posted on
Novellus' Web site, Ross said. In trading after the close, the stock climbed back to $34-1/4.
He said that orders in the quarter of $500 million was "a huge order number" and was in line with what he was expecting.
The company raised guidance for 2001 sales on its conference call, Ross said. Novellus said that it expects to have $2 billion in
sales in 2001, Ross said.
That prompted him to raise his 2000 per-share estimates to $3.20 from $3.10. Novellus said on the call that it expects
fourth-quarter earnings of 71 cents a share on sales of "at least" $415 million, Ross said.
Novellus couldn't be reached for comment.
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