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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: David Rosenthal who wrote (20571)	6/18/1998 6:06:00 PM
From: Teri Skogerboe	Respond to of 70976

Some semi news, first NVLS, then some estimate revisions on ALTR and XLNX. Novellus <NVLS.O> to cut 10 percent of workforce SAN JOSE, Calif., June 18 (Reuters) - Novellus Systems Inc., a semiconductor equipment maker said Thursday it would cut its workforce by 10 percent in the face of a weak semiconductor market. "It is prudent to aggressively control our cost programs in the face of economic conditions in the semiconductor industry," Chief Executive Richard Hill said in a statement. Hill added the company plans a high level of spending on new products it hopes will lead the industry as market conditions improve. Earlier this month Novellus unveiled a line of systems for chip companies to manufacture faster semiconductors using a much-vaunted copper technology. 17:22 06-18-98 Copyright 1998 Reuters Limited. All rights reserved. ----- Novellus Announces Cost Reduction Program SAN JOSE, Calif.--(BUSINESS WIRE)--June 18, 1998--Novellus Systems Inc. (Nasdaq NM:NVLS) Thursday announced a series of cost reduction measures intended to mitigate the effect of reduced capital spending by semiconductor manufacturers as well as to take advantage of the company's workforce consolidations. Effective today, the company will be effecting a broad range of programs, including completion of the relocation of its Palo Alto thin film system operations to San Jose together with a reduction of approximately 10 percent of Novellus' overall workforce. According to Chairman and CEO, Richard Hill: "It is prudent to aggressively control our cost programs in the face of economic conditions in the semiconductor industry. We intend to manage the business to sustain appropriate margins while maintaining a high level of expenditures on new products which are at the forefront of our industry's technologies and which we believe will lead the industry as market conditions turn more favorable." 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." Additional information about the company is available on the Novellus Systems home page on the World Wide Web, located at novellus.com. Certain of the statements in this news release that are not historical, including the size of the expected headcount reduction, the sustaining of certain margin levels, the level of new product development expenditures and the company's belief that its products will lead the industry are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially because of, among other factors, (i) continued declines in spending in the semiconductor capital equipment sector making it more difficult to sustain margins and to maintain product development expenditures at desired levels and (ii) possible competitive product introductions with new or more advanced technologies. CONTACT: Novellus Systems Inc., San Jose Robert Smith, 408/943-9700 KEYWORD: CALIFORNIA BW0273 JUN 18,1998 ----- RESEARCH ALERT - Altera, Xilinx estimates cut NEW YORK, June 18 (Reuters) - SoundView Financial said Thursday its semiconductor analyst Scott Randall lowered his earnings estimates on Altera Corp <ALTR.O> and Xilinx Inc <XLNX.O>. Cut Altera estimates to $1.54 a share from $1.59 for fiscal 1998 and $1.98 from $2.04 for fiscal 1999. Cut Xilinx estimates to $0.35 a share from $0.37 for current quarter. Cut fiscal 1999 estimate to $1.68 a share from $1.78 and fiscal 2000 estimate to $2.40 from $2.56. Kept short- and long-term buy ratings on both companies. Xilinx rose 3/8 to 33-3/8 and Altera fell 3/4 to 29-15/16. 11:20 06-18-98 Copyright 1998 Reuters Limited. All rights reserved. ----