Novellus Systems Inc.'s (NVLS) first-quarter earnings fell 54%
as revenue continued to decline amid weakness in the semiconductor
industry.
Novellus is being acquired by Lam Research Corp. (LRCX) in a
stock deal that values Novellus at about $3.3 billion. Both
companies make products that help design and wire chips for
specific functions. Novellus mainly supplies technology that
deposits layers of film on semiconductors. Lam focuses on an
adjacent step in the manufacturing process--etching the film to
create features that define functions. Customers include large chip
makers like Intel Corp. (INTC) and Samsung Electronics Co.
(005930.SE, SSNHY).
Novellus grew more cautious late last year as renewed concerns
about the economy caused customers to postpone orders, but
shipments and bookings rose sequentially in the latest period.
Novellus reported a profit of $44.4 million, or 59 cents a
share, down from $96.4 million, or $1.04 a share, a year earlier.
Excluding merger-related costs and other impacts, per-share
earnings were 61 cents. Revenue slipped 21% to $326.7 million.
In February, the company had forecast earnings of 50 cents to 65
cents a share on revenue between $300 million and $330 million.
Gross margin narrowed to 47.3% from 50.4%.
Shipments rose to $319.2 million, a 15% increase from the prior
quarter. Bookings were $361.7 million, up 26% sequentially.
Shares closed at $47.03 Wednesday and were unchanged after
hours. The stock is up 14% since the start of the year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com