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To: DebtBomb who wrote (10928)	10/15/2002 4:08:57 PM
From: jtech	Read Replies (1) \| Respond to of 30712

DJ Novellus Systems 3q Sales FELL 24.1% 10/15/2002 Dow Jones News Services (Copyright © 2002 Dow Jones & Company, Inc.) (MORE) DOW JONES NEWS 10-15-02 04:06 PM DJ Novellus Systems 3Q EPS 3c (MORE) DOW JONES NEWS 10-15-02 04:06 PM DJ Novellus Systems 3Q EPS 11c Before Items (MORE) DOW JONES NEWS 10-15-02

To: DebtBomb who wrote (10928)	10/15/2002 4:09:16 PM
From: J D B	Read Replies (1) \| Respond to of 30712

Novellus Cuts -2: Analysts Sees Announcement Tues >NVLS By Pat Maio Of DOW JONES NEWSWIRES LOS ANGELES (Dow Jones)--Novellus Systems Inc. (NVLS), which continues to struggle with a deep downturn in the chip equipment industry, may announce a 10% work force reduction when it reports its fiscal 2002 third quarter earnings later Tuesday, said two analysts. Mark Fitzgerald, with Banc of America Securities in San Francisco, said he has been unable to confirm with the San Jose-based chip equipment maker whether the estimated 300 layoffs have indeed occurred. Fitzgerald said he was tipped off on the layoffs by "midlevel executives" who said the layoffs may have begun on Oct. 4. Novellus officials would not return phone calls to comment. Novellus had 3,000 employees at the end of June. Shekhar Pramanick with Prudential Securities Inc. also confirmed that he has gotten word of the layoffs. "I think it's a fact," said Pramanick, who recently issued a research note indicating the possibility of the layoffs. "Our checks suggest Novellus is implementing a headcount reduction of about 10%-12%," wrote Pramanick in a research note dated Oct. 4. The cuts could translate into annual savings of between $20 million and $30 million, or about 15 cents to 20 cents a share. The company could begin to see cost savings in the 2002 fourth quarter, he added. Both Fitzgerald and Pramanick don't own stock in Novellus. Neither do their firms have a banking relationship. Novellus has been struggling with a downturn in the chip equipment industry and has reported weak customer demand, including canceled orders. The layoffs aren't totally unexpected, the analysts said. A rival chip equipment maker, Varian Semiconductor Equipment Associates Inc. (VSEA), Gloucester, Mass., announced a major restructuring on Sept. 27, cutting about 15% of its staff. Additionally, said Fitzgerald, Novellus has revised its financial guidance three times since July as it has tried to get its arms around the business. Novellus officials first said on July 22 in announcing their second quarter results that they expected revenue of $250 million in the third quarter instead of previous estimates of $275 million. Then the officials trimmed that estimate to $220 million in a mid-quarter update on business conditions on Aug. 29, and again cut revenue expectations to "200 million or less" at a Banc of America Securities conference on Sept. 23. In its third quarter, a survey of analysts by Thomson First Call estimate Novellus will earn 9 cents a share on revenue of $233 million. Shares of Novellus closed Tuesday at $26.13, up $2.68, or 11.4%, on volume of 12.7 million shares, compared with daily average volume of 9.7 million. -By Pat Maio; Dow Jones Newswires; 323-658-3776; patrick.maio@dowjones.com (END) DOW JONES NEWS 10-15-02 04:06 PM- - 04 06 PM EDT 10-15-02