Novellus Systems Reports Results for Second Quarter 2002
SAN JOSE, Calif., July 22 /PRNewswire-FirstCall/ -- Novellus Systems, Inc. (Nasdaq: NVLS - News) today reported results for its second quarter ended June 29, 2002. Net sales for the quarter were $222.1 million, down 41.1 percent from $376.9 million in the second quarter of 2001, and up 30.9 percent from $169.7 million for the first quarter of 2002. Net income for the second quarter of 2002 was $12.0 million or $0.08 per fully diluted share, down 79.7 percent from $0.40 per fully diluted share in the second quarter of 2001 and up from $0.03 per fully diluted share or 213.2 percent in the first quarter of 2002, which included a net special benefit totaling $4.4 million and a $4.6 million gain on the sale of an investment.
Shipments of $241.4 million in the second quarter of 2002 represent an increase of 64.1 percent compared to $147.1 million reported in the first quarter of 2002. Deferred revenue at the end of the second quarter increased 16.4 percent to $136.6 million, from $117.4 million in the first quarter of 2002, due to increased shipments in the second quarter of 2002.
Restricted and unrestricted cash and short-term investments at June 29, 2002, were $1.814 billion, a decrease of 7.6 percent or $149.9 million over the first quarter 2002 balance of $1.964 billion.
Richard S. Hill, chairman and chief executive officer, said, "We remain committed to our strategy of continued investment in advanced products and technology despite the cyclical environment of our industry. The benefits of investments made in prior downturns are reflected in our financial results and our ability to gain market share in key areas."
Hill continued, "This quarter we shipped our 100th SABRE® system, which underscores Novellus' dominant share of the copper deposition market and leading competitive position. Additionally, we expanded our engineering and manufacturing infrastructure with the opening of a new facility in Oregon. This facility is designed to produce our copper metallization and damascene dielectric deposition tools, which is timely given the semiconductor industry's mainstream transition to the use of copper in the ICs that power today's sophisticated consumer electronic devices."
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements regarding (i) Novellus' commitment to a strategy of continued investment in advanced products and technology, and (ii) the semiconductor industry's transition to the use of copper, as well as other matters discussed in this news release that are not purely historical data, are forward-looking statements. The forward-looking statements involve risks and uncertainties including, but not limited to, a shift in demand from advanced products and technology to conventional products and technology, a slowdown in the move toward copper interconnects and other risks indicated in our filings with the Securities and Exchange Commission (SEC). Actual results could differ materially from those set forth in the forward-looking statements. Novellus assumes no obligation to update this information. For more details, relating to risks and uncertainties that could cause actual results to differ from those anticipated in our forward-looking statements, and risks to Novellus' business in general, please refer to Novellus' SEC filings, including its most recent Annual Report on Form 10-K for the year ended December 31, 2001, and its Quarterly Report on Form 10-Q for the quarter ended March 30, 2002.
About Novellus Systems:
Novellus Systems Inc., an S&P 500 company, manufactures, markets and services advanced deposition and surface preparation equipment for today's advanced integrated circuits. The company's products are designed for high- volume production of advanced, leading-edge semiconductor devices at the lowest possible cost. Headquartered in San Jose, Calif., with subsidiaries throughout the United States as well as in the United Kingdom, France, Germany, The Netherlands, Ireland, Israel, Italy, India, China, Japan, Korea, Malaysia, Singapore and Taiwan, Novellus is a publicly traded company on the Nasdaq stock exchange and a component of the Nasdaq-100 Index®. Additional information about the company is available on Novellus' home page at www.novellus.com.
NOTE: SABRE is a registered trademark of Novellus Systems, Inc.
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(INCLUDING ONE-TIME CHARGES AND BENEFITS)
(in thousands, except per share
amounts) Three months ended Six months ended
(Unaudited) June 29 June 30 June 29 June 30
2002 2001 2002 2001
Net sales $222,147 $376,899 $391,826 $835,604
Cost of sales 120,583 177,275 218,732 380,995
Gross profit 101,564 199,624 173,094 454,609
Operating expenses
Selling, general, and
administrative 39,478 54,468 74,164 123,374
Research and development 58,727 72,707 112,773 143,198
Special charges (benefits) -- -- (4,389) 13,160
Total operating expenses 98,205 127,175 182,548 279,732
Income (loss) from operations 3,359 72,449 (9,454) 174,877
Other income, net 11,847 13,379 29,516 29,939
Income before income taxes 15,206 85,828 20,062 204,816
Provision for income taxes 3,193 26,607 4,213 63,493
Net income $12,013 $59,221 $15,849 $141,323
Net income per share:
Basic net income per share $0.08 $0.42 $0.11 $1.00
Diluted net income per share $0.08 $0.40 $0.11 $0.95
Basic shares used in per share
calculation 145,120 142,267 144,687 141,638
Diluted shares used in per share
calculation 151,053 149,643 150,838 148,876
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(EXCLUDING ONE-TIME CHARGES AND BENEFITS)
(in thousands, except
per share amounts) Three months ended Six months ended
(Unaudited) June 29 June 30 June 29 June 30
2002 2001 2002 2001
Net sales $222,147 $376,899 $391,826 $835,604
Cost of sales 120,583 177,275 218,732 380,995
Gross profit 101,564 199,624 173,094 454,609
Operating expenses
Selling, general, and
administrative 39,478 54,468 74,164 123,374
Research and development 58,727 72,707 112,773 143,198
Total operating expenses 98,205 127,175 186,937 266,572
Income (loss) from operations 3,359 72,449 (13,843) 188,037
Other income, net 11,847 13,379 24,913 29,939
Income before income taxes 15,206 85,828 11,070 217,976
Provision for income taxes 3,193 26,607 2,325 67,573
Net income $12,013 $59,221 $8,745 $150,403
Net income per share:
Basic net income per share $0.08 $0.42 $0.06 $1.06
Diluted net income per share $0.08 $0.40 $0.06 $1.01
Basic shares used in per share
calculation 145,120 142,267 144,687 141,638
Diluted shares used in per share
calculation 151,053 149,643 150,838 148,876
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited) June 29 December 31
2002 2001
Assets:
Current assets
Cash and short-term investments $941,894 $921,822
Restricted short-term investments 872,299 961,643
Accounts receivable, net 221,244 225,916
Inventories 251,362 244,712
Deferred taxes and other current
assets 142,573 163,118
Total current assets 2,429,372 2,517,211
Property & equipment, net 167,743 177,601
Other assets* 489,202 314,850
Total assets: $3,086,317 $3,009,662
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued
liabilities $212,310 $202,125
Deferred profit 51,528 40,835
Income taxes payable 9,504 5,870
Short-term obligations 17,927 26,179
Convertible subordinated
debentures 862,953 862,659
Total current liabilities 1,154,222 1,137,668
Total liabilities 1,154,222 1,137,668
Shareholders' equity:
Common stock 1,329,303 1,273,201
Retained earnings and other
comprehensive income 602,792 598,793
Total shareholders' equity 1,932,095 1,871,994
Total liabilities &
shareholders' equity $3,086,317 $3,009,662
* Other non-current assets in 2002 include a note receivable of $397.4
million and restricted investments of $59.0 million both related to the
company's participation in the synthetic lease financing of our
facilities.
SOURCE: Novellus Systems, Inc. |
