Novellus takes $71.3 million in charges, resulting in Q3 loss
Semiconductor Business News
(10/15/01 18:43 p.m. EST)
SAN JOSE -- Novellus Systems Inc. today reported a 19.4% sequential drop in revenues to $303.7 million in the third quarter from $376.9 million in Q2. The supplier of semiconductor deposition equipment recorded a restructuring charge, inventory write-downs and other items totaling $71.3 million, which resulted in a $14.0 million loss for the third quarter.
"Economic uncertainty and depressed demand in the end electronic products market continue to negatively impact our customers capital spending programs," said Richard Hill, chairman and CEO of Novellus.
Excluding the $71.3 million charge for restructuring and other items, Novellus said it would have reported a net income of $35.2 million in the third quarter. In the second quarter, Novellus posted a net income of $59.2 million.
While business overall is weak, the San Jose equipment supplier received additional contracts for copper processing and 300-mm wafer systems. "Even in the present business climate, customers are continuing to push forward with their copper and 300-mm programsin order to remain competitive," said the chief executive officer.
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4:54PM Novellus (NVLS) 31.61 -2.26: -- Update -- On call, said that cancellations in Q3 were virtually non-existent... indicates that operating expenses will have been reduced by a $200 mln annual run rate by the end of Q4... said that all executives have taken up to 25% decrease in pay while every employee has taken a minimum 5% decrease in lieu of any layoffs that could be contemplated after Jan. 1... NVLS -0.74
4:49PM Novellus (NVLS) 31.61 -2.26: -- Update -- On conference call, notes that Q3 bookings of $124 mln were below the worst case scenario provided on mid-qtr update... shortfall attributed to tragic events of Sept. 11... says bookings disappointments were seen in every region; majority of bookings came in 300mm and $40 mln of it was for PVD... lower gross margins blamed on lower absorption due to lower shipments, aggressive pricing on the part of NVLS, and the high cost of 300 mm... for Q4, NVLS forecasting bookings of $125-$150 mln, shipments of $160 mln, and EPS of $0.11 (consensus is $0.11)... NVLS -1.24
4:13PM Novellus (NVLS) 31.61 -2.26: -- Update -- Reports Q3 earnings of $0.24 per share, in line with the consensus estimate; reports Q3 revenues of $303.7 mln versus the consensus estimate of $298.7 mln; shipments of $192.9 mln in the third quarter of 2001 represent a decline of 22.1% compared to $247.6 mln reported in the second quarter of 2001; see press release. |
