hi Michael, last week, i think Judy said she liked NVLS.
this report will strenthen the semi's.
right now the only semi stock i have are some tower semi feb call options. looks like SEA is holding on to the large gains from yest.
Monday January 19, 7:31 am Eastern Time
Novellus Systems Reports Record Fourth Quarter and Year-End 1997 Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 19, 1998--Novellus Systems Inc. (Nasdaq NM:NVLS - news) Monday reported record bookings, backlog and revenue for its year and fourth quarter ended Dec. 31, 1997.
For the fourth quarter of 1997, net sales were $162.8 million, an increase of 56 percent over fourth quarter 1996 net sales of $104.6 million. Net income of $22.4 million, or $0.64 per share was recorded for the fourth quarter of 1997, up 33 percent as compared with the fourth quarter 1996 net income of $16.9 million, or $0.51 per share.
Net sales for the year were $534.0 million, an increase of 16 percent over 1996 net sales of $461.7 million. The net loss for the year was $95.7 million, or $2.88 per share, compared with net income of $94.0 million, or $2.85 per share for 1996. Backlog on Dec. 31, 1997 was $224.0 million, an increase of 43 percent from the $156.4 million reported at Dec. 31, 1996.
As previously reported, Novellus took an aggregate one-time pre-tax charge of $133.5 million in the second quarter of 1997 in connection with the acquisition of the PVD division of Varian Associates Inc. Other one-time charges in the second quarter of 1997 included charges attributable to the write-off of $17.7 million due from Submicron Technology Inc. and charges totaling $84.0 million in conjunction with the May 5, 1997 settlement of the TEOS patent litigation.
Before the one-time charges recorded in the second quarter of 1997, the year ended Dec. 31, 1997 would have shown net income of $75.3 million, or $2.17 per share, a decrease of 20 percent and 24 percent respectively as compared with the year ended Dec. 31, 1996.
The per share amounts are stated on a diluted basis and are adjusted for the 2-for-1 split that was announced on Sept. 22, 1997 and was effective at the close of the market on Oct. 13, 1997.
Richard Hill, president and chief executive officer said: ''We were very pleased with the record bookings, backlog and revenue achieved by the company for 1997, and with the 5 percent and 12 percent sequential increases in net sales and net income over the prior quarter. We were able to achieve this growth despite the delay of shipments experienced by the company during the last two weeks of the fourth quarter.
''The delays were related to the inability of Korean customers to open letters of credit required for the import of shipments into Korea.''
Hill added: ''1997 was marked by several significant events for the company. First, Novellus entered the $1.5 billion PVD market through the strategic acquisition of the Thin Films Systems division from Varian Associates. Second, we were very successful in our new product development efforts. We announced our Concept 3 platform for CVD Dielectric and Tungsten applications on 300mm wafers, and announced a suite of products for both dielectrics and barriers to be used in the fabrication of advanced 0.18 micron multi-level semiconductors, kicking off the 'Vertical Reality Revolution.'
''Our efforts during the year have provided the foundation for Novellus to lead the emerging market transition to copper damascene processing, maintaining our role as the industry innovation leader for deposition technologies.''
Robert Smith, executive vice president and chief financial officer noted: ''In addition to our sequential quarterly growth in revenue and net income, we have been able to continue to generate cash with our year-end cash and short-term investments balance increasing 45 percent from $67.6 million at Sept. 27, 1997 to $98.1 million at Dec. 31, 1997.''
Smith continued: ''During the fourth quarter, we became one of the first companies in the industry to achieve ISO 9001 Quality certification. As our company continues to grow, our business practices for developing, manufacturing, and servicing our products need to also keep pace. The ISO 9001 process was an excellent verification of Novellus' ability to maintain operational excellence as we enter 1998.''
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The statements regarding (i) the delay of shipments during the fourth quarter, (ii) the company's ability to lead market transitions in deposition technologies, and (iii) the company's ability to maintain operational excellence, 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 possible continuing credit uncertainties in Korea and elsewhere in Asia, the inability of the company's product development efforts to continue its position as an industry leader in deposition technologies, the company's inability to continue to perform to ISO 9001 standards, and other risks indicated in filings with the Securities and Exchange Commission (SEC). Actual results may 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 and quarterly reports on Form 10-Q.
Novellus Systems 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 semiconductors at the lowest overall cost. The company's stock trades on the Nasdaq Stock Market's National Market under the symbol ''NVLS.''
NOVELLUS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
Net Sales $162,830 $104,607 $534,004 $461,736
Cost of Sales 73,436 46,032 243,566 197,162
Gross Profit 89,394 58,575 290,438 264,574
Operating Expenses
Research & Development 28,134 15,565 89,830 53,902
Selling, General and
Administrative 27,357 19,390 89,474 74,419
In-Process Research &
Development -- -- 119,246 --
Restructuring & Other
Costs -- -- 14,243 --
Litigation Settlement &
Related Legal Costs -- -- 84,021 --
Bad Debt Write-off -- -- 17,700 --
Total Operating Expenses 55,491 34,955 414,514 128,321
Income (Loss) from
Operations 33,903 23,620 (124,076) 136,253
Interest Income,
(Expense) Net 21 2,345 2,944 8,407
Income (Loss) before
Income Taxes 33,924 25,965 (121,132) 144,660
Provision (Benefit) for
Income Taxes 11,534 9,087 (25,474) 50,631
Net Income (Loss) $ 22,390 $16,878 ($95,658) $94,029
Basic Net Income (Loss) per
Share $0.66 $0.52 ($2.88) $2.92
Diluted Net Income (Loss)
per share $0.64 $0.51 ($2.88) $2.85
Shares Used in Basic
Calculation 33,700 32,378 33,257 32,156
Shares Used in Diluted
Calculation 34,984 33,180 33,257 33,018
-0-
NOTE: The earnings per share amounts have been adjusted for
the 2 for 1 split effective October 1997.
-0-
NOVELLUS SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Dec. 31,
1997 1996
Assets
Current Assets:
Cash & Short-Term Investments $98,089 $176,668
Accounts Receivable, Net 133,925 119,710
Inventories 82,133 55,448
Prepaid Taxes and Other
Current Assets 36,862 22,143
Total Current Assets 351,009 373,969
Property and Equipment, Net 93,340 66,218
Other Assets 48,951 19,600
Total Assets $493,300 $459,787
Liabilities & Shareholders' Equity
Current Liabilities:
Accounts Payable $22,865 $26,047
Short-Term Obligations 11,652 13,153
Other Accrued Liabilities 92,782 46,951
Total Current Liabilities 127,299 86,151
Long Term Debt 65,000 --
Total Liabilities 192,299 86,151
Shareholders' Equity:
Common Stock 154,167 128,751
Retained Earnings and Cumulative
Translation Adjustment 146,834 244,885
Total Shareholders' Equity 301,001 373,636
Total Liabilities &
Shareholders' Equity $493,300 $459,787
-0-
NOVELLUS SYSTEMS INC.
SUPPLEMENTAL FINANCIAL INFORMATION (1)
(in thousands except per share amounts)
Year Ended
Dec. 31, Dec. 31,
1997 1996
Pro forma operating income $111,134 $136,253
Pro forma income before
income taxes $114,078 $144,660
Pro forma provision for
income taxes 38,786 50,631
Pro forma Net Income $75,292 $94,029
Pro forma basic Net
Income per share $2.26 $2.92
Pro forma Diluted Net
Income per Share $2.17 $2.85
Shares used in Basic
Calculation 33,257 32,156
Shares used in Diluted
Calculation 34,703 33,018
(1) The company's reported loss of $95.7 million or $2.88 per share
for the year ended Dec. 31, 1997 includes pre-tax one-time charges
totaling $235.2 million as previously discussed. This supplemental
financial information does not purport to be financial statements
prepared in accordance with generally accepted accounting
principles. The information in the tables shows operating income,
net income and net income per share excluding the one-time charges.
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