-Novellus sees quarterly orders hurt by caution
<<SAN FRANCISCO, Aug 26 (Reuters) - Novellus Systems Inc. (NASDAQ:NVLS), a maker of tools used to make microchips, on Thursday said quarterly orders for new equipment would be at the low end of its prior estimates as the chip industry becomes more cautious about capital expenditures.
But shares of Novellus rose slightly in after-hours trade as some investors had anticipated a weaker outlook.
Novellus said it now expects third-quarter orders of $420 million, revenue of $412 million, and earnings of around 37 cents a share. On July 12, the San Jose, California-based company had forecast a profit of 37 cents to 39 cents a share on revenue of $408 million to $418 million. Orders had been targeted to be in the range of $420 million to $440 million.
"We have experienced some rescheduling of shipments," Chief Executive Richard Hill said on a conference call with analysts. "I think there is caution among the whole customer base, but not from a standpoint of stopping their plans."
Novellus shares, which had closed down 2 percent to $24.65 on Nasdaq, rose to $25.00 in after-hours trading.
Hill attributed much of the caution to the decision by two Asian chip makers to delay the acceptance of Novellus tool shipments until as late as the first quarter of next year.
He said, however, that Novellus was not especially concerned that the delays were an early indicator that orders were set for a sustained slump. Four years ago, a colossal overestimation of electronics demand led to the chip and chip-making gear industry's worst-ever downturn.
"I think there is caution among the whole customer base but not from a standpoint of stopping their plans," Hill said. "I think a lot more will be known by the school-year season and as we ramp into the Christmas season.">> |
