NVLS ($46-$43-$51) P/E 27 Beat by 1 Cent,Income fell 24%..``There is significant uncertainty in the semiconductor industry at this time as both end-user markets in computers and telecommunications remain weak.''
Monday July 16, 5:07 pm Eastern Time
SmartMoney.com - Market Analysis
Novellus Posts 24% Drop in Profit But Tops Estimate
Semiconductor-equipment maker Novellus Systems (NVLS) on Monday reported second-quarter net income that fell 24 percent, at the high end of estimates, in the face of the chip industry's worst-ever chip slump.
For the period ended June 30, the San Jose, California-based company said net income declined to $59.2 million, or 40 cents a share, compared with $78.2 million, or 54 cents, in the year-ago quarter. Sales rose 3.6% to $376.9 million from $364 million.
The results were at the top of the net income range of 35 cents to 40 cents a share, and beat the mean estimate of 39 cents, according to Thomson Financial/First Call.
``The second-quarter results continue to reflect the reduction of capital spending by semiconductor manufacturers,'' said Chief Executive Richard Hill in a statement. ``There is significant uncertainty in the semiconductor industry at this time as both end-user markets in computers and telecommunications remain weak.''
Shares of Novellus fell $3.61, or 7.2%, to $46.37 on the Nasdaq Stock Market. The stock is up 29% this year, along with shares of other chip-equipment makers, whose customers still need to buy next-generation gear to product microchips despite weak demand. |
