Wednesday, semiconductor equipment maker Novellus Systems, Inc. (NVLS), reported a loss for the third quarter from a profit last year, reflecting a significant decline in net sales. While, net loss per share met analyst expectations, revenues was higher than street expectations.
Novellus Systems' net loss for the third quarter was $4.03 million or $0.04 per share compared with $1.40 million or $0.01 per share a year earlier. Excluding certain charges, net loss was $2.51 million, or $0.03 per share, compared to net income of $2.79 million or $0.03 per share in the same period last year. On average, seventeen analysts polled by Thomson Reuters expected the company to report a loss of $0.04 per share for the third quarter. Analysts' estimates typically exclude special items.
Charges for the third quarter included $1.2 million related to the consolidation of manufacturing facilities in the company's Tualatin, Oregon facility and $1.8 million in additional charges primarily due to reductions in workforce. The charges, however, were offset by several discrete tax items with a net aggregate tax benefit of $1.0 million.
The San Jose, California-based company's net sales dropped to $176.88 million from $250.10 million for the year-ago period. Revenues, however, exceeded Street estimate of $172.43 million.
In the preceding quarter, net loss widened to $50.0 million or $0.52 per share from $2.4 million or $0.02 per share for the year-ago quarter. Excluding items, net loss for the second quarter was $39.3 million or $0.41 per share, compared to a loss of $6.2 million or $0.06 per share in the prior year quarter. Net sales plunged 54% to $119.21 million from $257.74 million in the same quarter last year.
Total operating expenses for the quarter under review decreased to $73.98 million from $105.51 million in the same period last year. Selling, general and administrative expenses declined to $36.65 million from $52.04 million, while research and development expenses dropped to $37.01 million from $51.65 million a year-ago.
In the third quarter, bookings were $171.5 million, up $60.4 million or 54.3% from bookings of $111.2 million for the second quarter. Shipments rose $45.5 million or 37.9% to $165.4 million from $120.0 million reported for the second quarter.
Richard Hill, Chairman and Chief Executive Officer said, "This quarter was characterized by strong customer order activity driven by improved fab utilization levels, increased memory prices and demand for PCs and smartphones."
For the nine months, net loss was $120.43 million compared with net income of $14.54 million in the year-ago period. Net sales for the period was $395.00 million, down from $822.55 million a year earlier.
Amongst others in the industry, Mattson Technology, Inc. (MTSN) today reported a loss that narrowed to $8.6 million or $0.17 loss per share from $20.7 million or $0.42 loss per share a year ago. Net sales for the third quarter was $11.2 million, down from $30 million for the year earlier period.
Yet another competitor, Lam Research Corp. (LRCX) reported net income that increased to $16.8 million or $0.13 per share from $8.9 million or $0.07 per share in the same quarter last year. Revenue for the quarter was $318.5 million, down from $440.4 million in the comparable quarter last year. However, ongoing net income was $4.18 million or $0.03 per share compared to a net loss of $57.01 million or $0.45 per share a year earlier.
Wednesday, NVLS closed at $21.61, down $0.22 or 1.01%, on a volume of 6.12 million shares on Nasdaq. In after hours, the stock declined further and traded at $21.71, up $0.10 or 0.46%. LRCX closed at $35.5, down $1.15 or 3.11% on volumes of $4.03 million on Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.