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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (3380)	8/29/2002 6:58:24 PM
From: SemiBull	Read Replies (1) \| Respond to of 3813

Novellus Sees 3rd-Quarter Bookings of $220 Million Versus Earlier $250 Million View By Mark Boslet PALO ALTO, Calif -- Novellus Systems Inc. (NasdaqNM:NVLS - News) said a delay in two orders for advanced semiconductor manufacturing equipment will make it impossible for the company to hit revenue targets for its third quarter. The Silicon Valley supplier also said on a conference call that a broad slowdown in the marketplace will lower its expected bookings, or orders, for the quarter. "The outlook is very, very murky," said Chief Executive Richard Hill. "The general feeling tends to be negative." Hill said revenue would come in at $230 million compared with the company's previous expectation of $250 million. Two "extremely important" Asian customers decided to "push out" the delivery of equipment for their latest 300-mm chip factories, he said. The factories cut production costs by producing chips on larger 300-mm, or 12- inch, silicon wafers rather than the 200-mm wafers in wide use today, thereby increasing the number of chips each plant can generate. Novellus said it wasn't sure whether the deliveries would take place in the fourth quarter or beyond. "Our customers have seen a slowdown in demand from their customers" and are slowing the addition of new capacity, Mr. Hill said. Novellus also expects bookings for the quarter to be $220 million compared with previous guidance of $250 million. There is even some risk to this estimate and the number could fall as low as $200 million, Hill said. On the call, the company said it anticipated break-even earnings for the quarter instead of earnings of two cents, including a $17.7 million charge. Excluding the charge, that should be 10 cents a share, the company said. Novellus shares were off in after-market trading, down 1.6% at $23.85. -By Mark Boslet, Dow Jones Newswires, 650-496-1366; mark.boslet@dowjones.com