Novellus Systems Boosts Q2 Sales, Shipment Targets
SAN FRANCISCO (Dow Jones) -- Novellus Systems Inc.
late Wednesday boosted its second-quarter sales and shipment targets due to demand for machines used to make so-called NAND flash chips and DRAM memory chips that help power consumer electronic devices. The chip-equipment maker also said its gross profit margin is improving.
In its midquarter update, Novellus (NVLS) said sales will be in the range of $400 million to $410 million, higher than the $378.4 million analysts polled by Thomson First Call had anticipated.
The San Jose, Calif.-based company pegged its earnings per share in the range of 37 cents to 40 cents, a figure that includes the cost of expensing stock options. It lifted its gross margin target -- a key measure of profitability -- to 49% of sales, up from its prior forecast of 48%.
Novellus Systems said bookings would be in the range of $435 million to $450 million, an increase of 4% to 8% over the March ended quarter. In addition, the company hiked its shipment target to a range of $445 million to $455 million, an increase of $20 million over its previous outlook.
In a conference call, Rick Hill, chief executive officer of Novellus Systems, the No. 4 U.S. chip-equipment provider based on annual sales, said the firsthalf of the year has been stronger than the last six months of 2005.
Ahead of the financial update, the company's shares fell 32 cents, or 1.4%, to close at $22.45. |
