Novellus might miss Q3 sales goal
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 5:49 PM ET Aug. 28, 2003
SAN FRANCISCO (CBS.MW) - Novellus Systems fell in late trading Tuesday after the company said revenue might total only $215 million during the current quarter rather than the previously expected target of $220 million.
Shares fell 2.6 percent to $39.77 on Island ECN.
Novellus (NVLS: news, chart, profile) CEO Rick Hill said in a regularly scheduled conference call that he expects revenue between $215 million to $220 million, orders of $220 million, shipments of $210 million and breakeven earnings for the quarter ending in September.
The targets are all consistent with those provided at the end of July, except for revenue, which was targeted at $220 million.
Asked for further comment by an analyst on the call Hill said he was still optimistic. "We believe we'll hit $220 million in revenue," Hill said. "You shouldn't read anything into [the range] it at all."
Hill said his customers' manufacturing capacity is tightening, especially at the leading edge of technology, and that semiconductor foundries are adding incremental capacity.
The chip-equipment maker stated, though, that it would take a larger-than-expected charge of $70 million for the write-off of inventory.
Analysts surveyed by Reuters Research expected breakeven earnings and sales of $220 million, on average.
"The overall business seems to continue to strengthen, but there still remains some hesitation and schizophrenia regarding spending on capacity expansions," Hill said. |
