(RTTNews) - Wednesday, semiconductor equipment maker Novellus Systems, Inc. (NVLS: News ), 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."

To receive FREE breaking news email alerts for Novellus Systems and others in your portfolio

 1   2   Next Page