Novellus Systems Inc. Earnings Cheat Sheet: Profit Falls Behind Revenue Decline

S&P 500 (NYSE:SPY) component Novellus Systems, Inc. (NASDAQ:NVLS) saw profit fall amid falling revenue. Novellus Systems develops, manufactures, sells, and supports equipment used in the creation of chips and semiconductors.

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Novellus Systems Earnings Cheat Sheet for the Third Quarter

Results: Net income for the semiconductor equipment and materials company fell to $51.1 million (73 cents per share) vs. $76.3 million (82 cents per share) a year earlier. This is a decline of 33% from the year earlier quarter.

Revenue: Fell 16.5% to $306.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NVLS beat the mean analyst estimate of 68 cents per share. Analysts were expecting revenue of $311.2 million.

Quoting Management: Richard S. Hill, Chairman and Chief Executive Officer, said, “The current global market volatility has affected capital intensive business investment but we are optimistic that the underlying demand for technology products will enable us to profitably ride through this period of uncertainty.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by one cent in the first quarter, and by 10 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 70 cents per share to 49 cents. At $3.03 per share, the average estimate for the fiscal year has fallen from $3.24 ninety days ago.

Competitors to Watch: Mattson Technology, Inc. (NASDAQ:MTSN), Amtech Systems, Inc. (NASDAQ:ASYS), Applied Materials, Inc. (NASDAQ:AMAT), Axcelis Technologies, Inc. (NASDAQ:ACLS), CVD Equipment Corporation (NASDAQ:CVV), Tegal Corporation (NASDAQ:TGAL), ASM Intl. N.V. (NASDAQ:ASMI), Varian Semiconductor (NASDAQ:VSEA), Lam Research Corporation (NASDAQ:LRCX), and FSI International, Inc. (NASDAQ:FSII).

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(Source: Xignite Financials)