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

To: Chris Anderson who wrote (1433)	4/20/1998 10:27:00 AM
From: David Lawrence	Read Replies (1) \| Respond to of 3813

Those that traded early appear to have been burned. Personally, based on the cautionary commentary, I'm surprised but pleased. I'm thinking about writing covered calls on this rally. Anyone else?

To: Chris Anderson who wrote (1433)	4/20/1998 10:40:00 AM
From: Henry Eichorszt	Read Replies (1) \| Respond to of 3813

FROM BRIEFING-NOVELLUS SYSTEMS INC. (NVLS) 42 3/4 CLOSED. Manufacturer of advanced automated wafer fautomated 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 oa 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. Chart