Novellus Systems Reports Third Quarter 2010 Results

(PRNewswire) — Novellus Systems, Inc. (Nasdaq: NVLS) today reported operating results for its third quarter ended September 25, 2010. Net sales for the third quarter were $367.2 million, up $45.8 million or 14.3 percent from second quarter net sales of $321.4 million, and up $190.3 million or 107.6 percent from third quarter 2009 net sales of $176.9 million. Net income for the third quarter was $76.3 million, or $0.82 per diluted share, up $13.0 million from second quarter net income of $63.3 million, or $0.66 per diluted share. The third quarter 2009 net loss was $4.0 million, or $(0.04) per diluted share.

(Logo: http://photos.prnewswire.com/prnh/20091020/SF95832LOGO)

(Logo: http://www.newscom.com/cgi-bin/prnh/20091020/SF95832LOGO)

Third quarter 2010 net income includes charges of $5.1 million, net of tax, primarily related to the consolidation of our Industrial Applications Group manufacturing facilities in Germany.  Net income excluding these charges was $81.3 million, or $0.88 per diluted share. Excluding certain charges, second quarter 2010 net income was $63.5 million, or $0.66 per diluted share, and third quarter 2009 net loss was $2.5 million, or $(0.03) per diluted share. A reconciliation of our non-GAAP operating results to U.S. generally accepted accounting principles ("GAAP") is included below.

Bookings in the third quarter of 2010 were $406.9 million, up $22.0 million or 5.7 percent from second quarter bookings of $384.9 million. Third quarter shipments of $363.3 million were up by $31.2 million or 9.4 percent from $332.1 million in the second quarter. Deferred revenue as of the end of the quarter was $47.4 million, an increase of $3.0 million or 6.8 percent from $44.4 million at the end of the second quarter.  Deferred revenue in the second and third quarters included $30.6 million and $32.4 million, respectively, related to system sales.

Cash, cash equivalents, and short-term investments as of the end of the third quarter were $594.5 million, an increase of $39.5 million or 7.1 percent from the second quarter ending balance of $555.0 million. Long-term investments and restricted cash and cash equivalents as of the end of the third quarter were $191.3 million, an increase of $3.6 million or 1.9 percent from the second quarter ending balance of $187.7 million. During the third quarter, we repurchased 1.6 million shares of our common stock at an average price of $24.00 per share, for $37.9 million.  Cash flow from operations during the third quarter of 2010 was $81.8 million, down $22.4 million or 21.5 percent from $104.2 million in the second quarter of 2010.

Richard S. Hill, Chairman and Chief Executive Officer said, "It is a pleasure to announce another strong quarter of financial results.  Our operational execution on manufacturing, product development and customer service continues to improve.  We have had very strong profitability and cash flow which we feel will help us continue to grow and strengthen our market position."

Management uses non-GAAP measures to evaluate operating performance. The discussion of bookings, shipments, net income (loss) excluding certain charges and benefits, and net income (loss) per diluted share excluding certain charges and benefits are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. We discuss these non-GAAP measures because we believe these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management.  Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the statements regarding (i) the continued improvement of our operational execution on manufacturing, product development and customer service and (ii) the continued growth and the strengthening of our market position. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contemplated by such statements. These risks and uncertainties include but are not limited to (i) the economy or the specific markets in which we operate may fail to continue to improve; (ii) our ability to manage costs of operation; (iii) increased competition from new competitors or current competitors with new products; (iv) our ability to maintain customer satisfaction; (v) our continued efforts in product development, and (vi) other risks indicated in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended June 26, 2010, our Current Reports on Form 8-K, and amendments to such reports. Forward-looking statements are made and based on information available to us on the date of this press release. We do not assume, and expressly disclaim, any obligation to update this information.

About Novellus:

Novellus Systems, Inc. (NASDAQ: NVLS) is a leading provider of advanced process equipment for the global semiconductor industry. The Company's products deliver value to customers by providing innovative technology backed by trusted productivity. An S&P 500 company, Novellus is headquartered in San Jose, CA with subsidiary offices across the globe. For more information please visit www.novellus.com.

NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS








Three Months Ended

Nine Months Ended

(In thousands, except per share amounts)
(Unaudited)

September 25,
2010

June 26,
2010

September 26,
2009

September 25,
2010

September 26,
2009

Net sales

$  367,203

$  321,369

$  176,879

$  964,801

$  395,000

Cost of sales

186,774

164,431

106,171

493,468

267,548







Gross profit

180,429

156,938

70,708

471,333

127,452







%  

49.1%

48.8%

40.0%

48.9%

32.3%







Selling, general, and administrative

46,426

43,032

36,648

134,509

125,565

Research and development

44,271

40,790

37,013

124,747

112,369

Restructuring charges

240

211

324

657

3,558







Total operating expenses

90,937

84,033

73,985

259,913

241,492







%  

24.8%

26.1%

41.8%

26.9%

61.1%







Operating income (loss)

89,492

72,905

(3,277)

211,420

(114,040)

%  

24.4%

22.7%

(1.9%)

21.9%

(28.9%)







Other income (loss), net

(132)

2,195

(124)

3,590

4,078













Income (loss) before income taxes

89,360

75,100

(3,401)

215,010

(109,962)







Provision for income taxes

13,095

11,792

625

34,181

10,464













Net income (loss)

$  76,265

$  63,308

$  (4,026)

$  180,829

$  (120,426)













Net income (loss) per share:






Basic

$  0.83

$  0.67

$  (0.04)

$  1.93

$  (1.25)







Diluted

$  0.82

$  0.66

$  (0.04)

$  1.90

$  (1.25)







Shares used in basic per share calculation

91,512

94,065

96,701

93,833

96,459







Shares used in diluted per share calculation

92,859

95,332

96,701

94,986

96,459










NOVELLUS SYSTEMS, INC.
RECONCILIATION OF NET INCOME (LOSS),
EXCLUDING CERTAIN CHARGES AND BENEFITS (1)








Three Months Ended

Nine Months Ended

(In thousands, except per share amounts)
(Unaudited) 

September 25,
2010

June 26,
2010

September 26,
2009

September 25,
2010

September 26,
2009

Net income (loss) excluding certain charges and benefits(2):

$        81,340

$ 63,496

$  (2,507)

$  190,321

$(87,287)

Consolidation of IAG manufacturing in Germany(3)

(4,861)

(4,861)

Reductions in workforce

(1,070)

(511)

(10,393)

Consolidation of semiconductor manufacturing in Oregon(4)

(1,242)

(875)

(1,242)

Impairment of inventory and evaluation systems

(4,867)

Write down of certain research and development assets

(354)

(897)

Restructuring charges(5)

(240)

(211)

(324)

(657)

(3,558)

Legal fees

(4,428)







Total charges

(5,101)

(211)

(2,990)

(11,332)

(20,957)

Tax effect of the above charges

26

23

439

1,840

6,221

Benefit due to operating loss carryforward utilization

20,730

20,730

Changes to unrecognized tax benefits, net

(17,115)

(17,115)

Charge due to California tax law change

(19,435)

Other discrete tax charges, net

(2,583)

(2,583)







Net income (loss)

$      76,265

$ 63,308

$  (4,026)

$   180,829

$(120,426)













Net income (loss) per diluted share excluding certain charges and benefits:

$       0.88

$     0.66

$  (0.03)

$        2.00

$  (0.90)

Consolidation of IAG manufacturing in Germany  

(0.05)

(0.05)

Reductions in workforce

(0.01)

(0.00)

(0.11)

Consolidation of semiconductor manufacturing in Oregon

(0.01)

(0.01)

(0.01)

Impairment of inventory and evaluation systems

(0.05)

Write down of certain research and development assets

(0.00)

(0.01)

Restructuring charges

(0.01)

(0.00)

(0.00)

(0.01)

(0.03)

Legal fees

(0.05)

Tax effect of the above charges

0.00

0.00

0.01

0.02

0.06

Benefit due to operating loss carryforward utilization

0.21

0.21

Changes to unrecognized tax benefits, net

(0.18)

(0.18)

Charge due to California tax law change

(0.20)

Other discrete tax charges, net

(0.03)

(0.03)







Net income (loss) per diluted share

$       0.82

$     0.66

$     (0.04)

$        1.90

$  (1.25)












1 | 2 | 3  Next Page »



Review Article Be the first to review this article
Downstream : Solutuions for Post processing PCB Designs

Aldec Webinar Nov 30

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Computer History Museum: the Future of War is Here
More Editorial  
Jobs
REVISED***Director Product Line RF/IC for EDA Careers at San Jose, CA
ASIC Design Engineer for Infinera Corp at Sunnyvale, CA
Principal PIC Hardware Controls Engineer for Infinera Corp at Sunnyvale, CA
Senior SW Developer for EDA Careers at San Jose, CA
Senior PIC Test Development Engineer for Infinera Corp at Sunnyvale, CA
Upcoming Events
“Empowering Leadership with WIT and WISDOM” at SEMI 673 South Milpitas Blvd. Milpitas CA - Nov 28, 2017
Artificial Intelligence and Convolution Neural Networks Discussion at San Jose State University Student Union Theater San Jose CA - Dec 4, 2017
Silicon Valley's Only Comprehensive Embedded Systems Conference at San Jose Convention Center 150 W. San Carlos St. San Jose CA - Dec 5 - 7, 2017
Oski Technology’s Decoding Formal Club Meeting at The Conference Center San Jose CA - Dec 7, 2017



Internet Business Systems © 2017 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise