Novellus Systems posts 1Q loss as shipments drop

Novellus Systems Inc., which makes gear for producing computer chips, said on Wednesday that it lost $66.4 million in the first-quarter as shipments fell by nearly half from the previous quarter.

The company said its loss of 69 cents per share during the quarter that ended March 28 compared with a profit of $15.5 million, or 15 cents per share, during the quarter that ended March 29, 2008.

Revenue fell to $98.9 million, from $314.7 million a year ago.

The quarter included a $19.4 million charge because of a California tax law change. Its loss without that and another special item would have been $45.5 million, or 47 cents per share.

Analysts surveyed by Thomson Reuters were expecting a loss of 51 cents per share on revenue of $101.7 million.

First-quarter shipments of $92.1 million fell 47.6 percent from $175.6 million in the fourth quarter.

Chairman and Chief Executive Richard S. Hill said, however, the company is "cautiously optimistic that our customers' order activity levels have stabilized and are beginning to rebound, although still at relatively low levels compared to our expectations."

Novellus shares rose 61 cents, or 3.7 percent, to close at $17.26. They rose another 72 cents, or 4.2 percent, to $17.98 in after-hours trading.