HILLSBORO, Ore. During its mid-quarter update on Tuesday (Nov. 29), Novellus Systems Inc. narrowed its guidance for the fourth quarter.
Chip-equipment provider Novellus (San Jose, Calif.) improved its Q4 order forecast, to up 5-to-10 percent, which was in the upper half of the previous guidance of flat-to-up 10 percent, said Avinash Kant, who watches the fab-tool industry for investment banking firm Adams Harkness Inc. (Boston).
The company also tightened its revenue guidance to $305-to-$315 million, compared to old guidance of $305-to-$322 million, Kant said. Shipments are now expected to fall between $290-to-$300 million, compared to $285-to-$300 million, he said.
EPS guidance remained unchanged at $0.15-to-$0.17. Consensus had called for $0.16 on $316 million for Q4.
“All in all, there was not much change in guidance during the mid-quarter update,” Kant said. “As stated earlier, Novellus re-iterated that high excess warranty charges would continue to impact earnings negatively all through 2006; Q4:05 should mark the highest charge, with expenses expected to decline gradually through 2006.”