-- Novellus Systems Reports Third Quarter Results and Record Bookings --
Business Editors
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 11, 1999--Novellus
Systems Inc. (Nasdaq NM: NVLS) Monday reported net sales and results
of operations for its third quarter ended Sept. 25, 1999.
Net sales for the quarter were $154.9 million, an increase of 45
percent over third quarter 1998 net sales of $106.7 million, and were
18 percent higher than the $130.9 million reported for the second
quarter 1999. Net income of $21.8 million was recorded for the
quarter, up 185 percent compared with the third quarter 1998 of $7.6
million and 75 percent higher than second quarter 1999 net income of
$12.4 million. Consequently, earnings per share of $0.54 in the third
quarter 1999 rose 145 percent from $0.22 in the third quarter of 1998
and increased 74 percent from the $0.31 per share reported for the
second quarter 1999. The per share amounts are stated on a fully
diluted basis.
Cash and short-term investments at Sept. 25, 1999 increased
to $354.2 million, up from second quarter 1999 balances of $345.3
million. Bookings in the third quarter of 1999 were the highest
recorded in the company's history and exceeded a 1:1 book-to-bill
ratio for the fourth consecutive quarter.
"Record bookings highlighted the quarter in which revenue, net
income and cash generation showed continued improvement," said Richard
Hill, chairman and chief executive officer. "The semiconductor
industry appears to be in the early stages of a broad-based recovery,
inventories are low and demand is seen across all product types,
especially telecommunications and consumer electronics. Bookings and
earnings strength are attributable to both capacity and technology
buys of our core products."
Hill continued, "We have realigned our corporate structure to
increase focus on our customers' critical process integration issues
and provide a framework for future corporate growth. The
reorganization established a new unit, Integration and Advanced
Development, aimed at unit process integration issues and developing
risk minimization strategies for fabs working with new metals and
low-k dielectric materials. We also combined the existing dielectrics
and metals product lines into a focused Business Operations Group, and
merged the company's engineering and manufacturing functions into a
single organization, Systems Development, Engineering and Operations,
which will help accelerate new products' time-to-market."
During the quarter Novellus was awarded the Texas Instruments'
Supplier Excellence Award, in recognition of a supplier who has
demonstrated outstanding performance and continuous improvement in
supporting TI. This award was received on the heels of the Intel
Preferred Quality Supplier award and followed by the NEC Outstanding
Equipment Supplier award.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements regarding (i) the broad-based
recovery of the semiconductor industry, (ii) the demand across all
product types, especially telecommunications and consumer electronics,
and (iii) the company's ability to provide a framework for future
corporate growth, as well as other matters discussed in the 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 possible overall
slowdown in new orders or a slowdown in certain product areas, the
costs involved in providing a framework for growth may not be
justified if that growth is not realized, and other risks indicated in
filings with the Securities and Exchange Commission (SEC). Actual
results could differ materially. Novellus assumes no obligation to
update this information. For more details, refer to Novellus'
SEC filings, including its most recent Annual Report on Form 10-K for
the year ended Dec. 31, 1998 and quarterly reports on Form 10-Q
for the quarters ended March 27 and June 26, 1999.
Novellus Systems Inc. manufactures, markets, and services
advanced automated wafer fabrication systems for the deposition of
thin films. Novellus deposition systems are designed for high-volume
production of advanced, leading-edge semiconductors at the lowest
overall cost. The company's stock trades on the Nasdaq Stock Market's
National Market under the symbol "NVLS". Additional information about
the company is available on the Novellus Systems home page on the
World Wide Web, located at novellus.com.
*T
NOVELLUS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per
share amounts) Three Months Ended Nine Months Ended
(Unaudited) Sept 25 Sept 26 Sept 25 Sept 26
1999 1998 1999 1998
Net Sales $154,916 $106,704 $401,025 $412,761
Cost of Sales 71,195 50,622 186,588 188,182
Gross Profit 83,721 56,082 214,437 224,579
Operating Expenses
Research and
Development 30,567 23,392 87,020 83,047
Selling, General and
Administrative 24,549 21,478 71,148 74,577
Total Operating
Expenses 55,116 44,870 158,168 157,624
Income from
Operations 28,605 11,212 56,269 66,955
Interest Income
Net 3,892 342 8,801 759
Income before Income
Taxes 32,497 11,554 65,070 67,714
Provision for Income
Taxes 10,724 3,931 21,473 23,025
Net Income $21,773 $7,623 $43,597 $44,689
Basic Net Income
Per Share $0.56 $0.22 $1.15 $1.32
Diluted Net Income
Per Share $0.54 $0.22 $1.10 $1.28
Shares Used in Basic
Calculation 38,941 34,095 37,898 33,948
Shares Used in Diluted
Calculation 40,646 34,659 39,568 34,854
NOVELLUS SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Sept 25 December 31
1999 1998
(Unaudited)
Assets
Current Assets:
Cash and Short-Term Investments $354,219 $130,818
Accounts Receivable, Net 184,554 173,364
Inventories 93,849 69,223
Deferred Taxes and Other Current
Assets 28,994 25,690
Total Current Assets 661,616 399,095
Property and Equipment, Net 106,739 105,579
Other Assets 64,130 47,265
Total Assets $832,485 $551,939
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $53,370 $30,966
Short-Term Obligations 13,213 12,986
Other Accrued Liabilities 65,570 67,522
Total Current Liabilities 132,153 111,474
Long Term Debt -- 65,000
Total Liabilities 132,153 176,474
Shareholders' Equity:
Common Stock 455,651 176,140
Retained Earnings and
Accumulated Other Comprehensive
Income 244,681 199,325
Total Shareholders' Equity 700,332 375,465
Total Liabilities and Shareholders'
Equity $832,485 $551,939
*T
--30--JS/np* KM/np
CONTACT: Novellus Systems Inc., San Jose
Robert Smith, Executive Vice President and Chief
Financial Officer, 408/943-9700
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS EARNINGS
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Symbols:
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