UPDATE - Novellus ups orders forecast, cites broad growth
Monday November 24, 5:08 pm ET
(Recasts lead paragraph; adds CEO comment, stock price)
SAN FRANCISCO, Nov 24 (Reuters) - Novellus Systems Inc., a maker of tools used to produce microchips, on Monday boosted its forecast for equipment orders and said profit would be at the high end of its previous guidance, supporting expectations for a strong turnaround in the semiconductor industry.
In a scheduled mid-quarter update, Novellus (NasdaqNM:NVLS - News) Chairman and Chief Executive Richard Hill said the company expected orders, an indicator of future revenue, to rise 25 percent to $275 million from third-quarter levels of $220 million. Previously, the company had forecast growth of 5 percent to 10 percent.
Hill also said the company now expected to earn 6 cents a share in the quarter on revenue of $220 million, at the high end of its earlier target.
"Business levels overall continue to improve," Hill said. "It doesn't feel like a head fake at this particular point in time. It's much more broad based."
Returning from its worst downturn on record, the semiconductor equipment industry has to date shown mild growth in orders, but investors have driven up the price of the stocks amid expectations for a strong turnaround.
Shares of Novellus rose to $44.12 in after-hours trading form a closing price of $43.54. |
