SAN JOSE, Calif. During its scheduled mid-quarter update on Tuesday (May 31), chip-equipment provider Novellus Systems Inc. raised its guidance for the second quarter.
Avinash Kant, an analyst with investment banking firm Adams Harkness Inc. (Boston), said that Novellus boosted its outlook due to improvements in gross margins and better operational efficiency.
Originally, Novellus (San Jose) had guided for orders to be flat in the second quarter, verses $302 million in the first quarter. Also in Q2, Novellus' shipments were projected to be between $320-to-$340 million, revenues were $320-to-$330 million, and EPS was $0.17-to-$0.20.
In the new forecast, Novellus' order guidance now stands at $302-to-$310 million in Q2, flat to up 3 percent over Q1, Kant said. Shipments are now projected to be $335-to-$355 million, verses $361 million in Q1, he said.
Revenues are projected to be $325-to-$330 million in Q2 verses $340 million in Q1, and EPS at $0.20-to-$0.22 verses $0.22 in Q1, he said.