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

To: Steve Fancy who wrote (1450)	4/29/1998 4:41:00 PM
From: Todd D. Wiener	Respond to of 3813

Steve- The market has been using strength to sell the chip-equips. The fundamental situation is degrading now. Business probably won't get better for at least 3 or 4 quarters. At some point, the stocks might revisit 1998 lows, after which all sellers will have cast their vote, and the leading companies (NVLS, AMAT, KLAC, KLIC, COHU, TER, etc.) will have a tremendous rally. But I don't see this happening for at least 6 months. Therefore, I believe the market understands (only slightly, though) that the downside risk is greater in the near term than the upside potential. Todd

To: Steve Fancy who wrote (1450)	4/29/1998 5:48:00 PM
From: Xpiderman	Read Replies (1) \| Respond to of 3813

Here is why, According to Briefing.com: NOVELLUS SYSTEMS INC. Shares of semiconductor production equipment maker are likely to come under some selling pressure this morning after the company warned last night that Q2 results would come in below market expectations. At this week's Hambrecht & Quist conference, CEO Rick Hill warned that Q2 revenues would probably fall by 10% as the slowdown in the capital equipment sector continues, but expects growth to resume in the second half of this year. Just last week, the company reported a 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. And while net sales rose 60.6% from a year-ago level to $163.2 million, on a sequential basis, net sales were flat as the expected slowdown in new orders hurt top line results. For Q2, Novellus expects revenues to come in 10% lower than in Q1, or around $147 million, but still ahead of year-ago level of $114.5 million. According to First Call, Novellus was projected to earn $0.46 a share in Q2, compared with $0.50 in the year-ago period. For the full-year of 1998, Novellus is currently projected to earn $2.07 a share, on revenues of about $600 million. In the year-ago period, Novellus earned $2.17 on revenues of $534 million. Yet, despite the performance warning for Q2, Novellus still hopes to exceed revenue expectations for 1998 as growth in the capital equipment sector is expected to improve in the second half of the year. Since the company reported its Q1 results, shares of Novellus are up 11% as expectations were for a bit more rosy outlook It is likely that the stock will give back some of its gains today.