SAN JOSE, Calif., July 14 /PRNewswire-FirstCall/ -- Novellus Systems, Inc.
(Nasdaq: NVLS) today reported net sales and results of operations for its
second quarter ended June 28, 2008. Net sales for the second quarter were
$257.7 million, down $57.0 million or 18.1 percent from first quarter 2008 net
sales of $314.7 million, and down $158.6 million or 38.1 percent from second
quarter 2007 net sales of $416.3 million. Net loss for the second quarter was
$2.4 million, or $0.02 per share, down $17.9 million from first quarter 2008
net income of $15.5 million, and down $59.7 million from second quarter 2007
net income of $57.3 million.
The second quarter 2008 results of operations include $13.6 million of
impairment and severance charges as a result of strategic decisions to focus
on our core products and reduce our cost structure going forward. Of these
charges, $6.5 million are in cost of sales, $4.3 million are in research and
development and $2.8 million are in selling, general and administrative.
Second quarter 2008 net income without those items was $6.2 million or $0.06
per diluted share. Excluding certain unusual charges, first quarter 2008 and
second quarter 2007 net income were $15.9 million and $57.5 million,
respectively, or $0.16 and $0.45 per diluted share, respectively. A
reconciliation of pro forma operating results to U.S. generally accepted
accounting principles ('GAAP') is included below.
Bookings in second quarter 2008 were $234.6 million, down $62.4 million or
21.0 percent from first quarter 2008 bookings of $297.0 million. Shipments of
$240.3 million in second quarter 2008 decreased by $72.5 million or 23.2
percent from $312.9 million reported for the first quarter of 2008. Deferred
revenue at the end of the second quarter was $95.7 million, a decrease of
$20.0 million or 17.3 percent from $115.7 million at the end of the first
quarter of 2008.
Cash, cash equivalents, investments and restricted cash as of June 28,
2008 were $708.7 million, an increase of $132.4 million or 23.0 percent from
the first quarter 2008 ending balance of $576.4 million. During the second
quarter 2008, we purchased approximately 0.5 million shares of our common
stock, at an average price of $21.97 per share, for $10.0 million.
Management uses non-GAAP measures to evaluate operating performance. The
presentation of net income excluding certain charges, and the discussion of
revenue on a shipments basis are not in accordance with GAAP and may differ
from non-GAAP methods of accounting and reporting used by other companies. We
present net income on a pro forma basis, excluding certain charges, because we
believe this helps both management and investors to assess the operating
performance of our business by comparing it to prior periods on a more
consistent basis. A reconciliation between our GAAP and non-GAAP results is
provided in an attached table. Non-GAAP numbers are merely a supplement to,
and not a replacement for, GAAP financial measures.
'We viewed these challenging business conditions as an opportunity to
improve our operational excellence, continue execution of our product
strategies, and capitalize on the market transition toward higher productivity
mega-fabs aimed at lowering manufacturing costs for our customers,' said
Richard S. Hill, Chairman and Chief Executive Officer.
