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

To: oexplayer who wrote (1426)	4/17/1998 12:36:00 PM
From: Tim Brustad	Read Replies (1) \| Respond to of 3813

I notice that the Zacks estimate for this qtr. is $.59, any comments from the more knowledgeable people on this thread would be appreciated. I recently purchased a small long position in NVLS, but am always curious about short to mid-term expectations. Thanks in Advance, Tim

To: oexplayer who wrote (1426)	4/20/1998 12:43:00 PM
From: Sonki	Respond to of 3813

kevin, do u think we pass 49 today??? up 4 already. nvls making some announcments in july re: copper from briefing.... nlvs in my ira...how aobut that ? we just talked last week and here it goes.. NOVELLUS SYSTEMS INC. (NVLS) 42 3/4 CLOSED. Manufacturer of advanced automated wafer fabrication systems for the deposition of thin films posted better-than expected Q1 results, but is cautious going forward, given the slowdown in the semiconductor capital equipment industry. Novellus reported Q1 net of $0.60 a share, a penny above the First Call estimate, and well above year-ago net of $0.46 a share, adjusted for 2-for-1 stock split. Net sales for the period increased 60.6% from a year-ago to $163.21 million, but sales were essentially flat sequentially as the company experienced an expected slowdown in new orders due to the current market conditions for semiconductor capital equipment. Gross profit margins were also essentially the same compared with year-ago period at 55.1%. And going forward, the company is cautious as the slowdown in the capital sector is expected to continue for the next couple of quarter, putting pressure on sales and earnings. To combat the downtrend in new orders, the company plans to pay closer attention to its general and administrative costs, although Novellus plans to continue to invest in new product development to help offset the current slowdown in the sector. The company continues to be encouraged by the longer-term outlook for the thin film deposition market, but with the sector still feeling the ill effects of Asia, this is not encouraging news for the stock. The slowdown in the sector is not new news, but the fact that this slower growth trend is expected to last at least another two quarters could cause some investors to exit the stock after the recent price rebound from the low $30s in the past three months.