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

To: David Lawrence who wrote (1341)	1/19/1998 11:27:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 3813

Novellus Posts Strong 4Q, But Concerns Linger Over 98 By CHRISTOPHER GRIMES Dow Jones Newswires NEW YORK -- Novellus Systems Inc. (NVLS) reported fourth quarter earnings that exceeded Wall Street expectations by a hair, and were 25% larger than those of a year earlier. Novellus earned 64 cents a share on sales of $162.8 million, compared with 51 cents a share on $104.6 million in fourth-quarter 1996. That's accounting for a 2-for-1 stock split Oct. 13. Wall Street had expected Novellus to earn 63 cents a share, according to a First Call Inc. mean estimate. While semiconductor equipment makers like Novellus have taken a serious pounding on the stock market over concerns about Asia, analysts generally expected good fourth-quarter results. But they are concerned that Asian chipmakers are just now beginning to cut back spending on equipment, which will hurt equipment companies in the first half of 1998. This was reflected in Novellus' press release. The company said it experienced delays in shipments at the end of the fourth quarter because Korean chipmakers weren't able to get letters of credit. Analysts will be listening for indications about how long this could last when Novellus holds a conference call Monday at 11 a.m. EST. "The semiconductor capital equipment group is probably OK for this quarter, but they started seeing push-outs (for orders) at the end of December," said John Pitzer, an analyst at Needham & Co. He said he expects guidance from the company to be cautious. "It's difficult to say because they're just now beginning to feel the effects of it," he said. Gus Richard, a Hambrecht & Quist analyst, said he had already lowered his 1998 earnings expectations on Novellus to $2.65 a share from $3.05. He said investors will get a pretty good idea of the industry outlook in the next few days since other big equipment makers are also reporting this week. KLA-Tencor Corp. (KLAC) will report Tuesday, followed Wednesday by Lam Research Corp. (LAMR). -By Christopher Grimes; 201-938-5253 (dated 1-19-98, obviously written before the conference call. If this is the Street's response, then the semi-equips will continue to drift in a trading range. Sentiment is so negative about the group that good news will just prevent a further decline.)