SAN JOSE, Calif. -- Two fab-tool vendors, Mattson and Novellus, posted mixed results for Q4.
Novellus Systems Inc. said sales for the fourth quarter were $363.5 million, down 7.6 percent from third quarter 2007 net sales of $393.3 million, and down 17.1 percent from fourth quarter 2006 net sales of $438.5 million.
Net income for the fourth quarter was $52.9 million, or $0.47 per diluted share, up $3.2 million or 6.3 percent from third quarter 2007 net income of $49.7 million, and up $10.3 million or 24.2 percent from fourth quarter 2006 net income of $42.6 million.
Results of operations include net restructuring and other benefits in the fourth quarter 2007 of $8.0 million, primarily resulting from a gain on the sale of property and buildings in San Jose, California. Novellus also reversed $8.4 million of previously recognized share-based compensation expense.
Net sales for fiscal year 2007 were $1.57 billion, down 5.3 percent compared with net sales of $1.66 billion in fiscal year 2006. Net income for the year was $213.7 million or $1.75 per diluted share, compared with fiscal year 2006 net income of $190.0 million, or $1.50 per diluted share.
"Our fourth quarter results show continued lowering of our break even level," said Richard S. Hill, chairman and chief executive of Novellus, in a statement.
Meanwhile, Mattson Technology Inc. said sales for the fourth quarter were $52.3 million, down 11 percent from $58.5 million for the previous quarter, and down 37 percent from $83.6 million in the fourth quarter of 2006.
Net sales for the fourth quarter of 2007 included royalties from DNS of $2.9 million, compared to none for the previous quarter and $1.0 million for the fourth quarter of 2006.
Net income for the fourth quarter was $4.8 million, or $0.09 per diluted share, compared with $3.6 million, or $0.07 per share, for the previous quarter, and $3.7 million, or $0.07 per share, for the fourth quarter of 2006.
2007 net sales were $267.3 million, including royalties of $11.5 million related to the license agreement with Dainippon Screen Manufacturing Co. Ltd. (DNS), down 5 percent from 2006 net sales of $281.8 million, including royalties from DNS of $7.5 million. 2007 net income was $27.6 million, or $0.52 per diluted share, an increase of 61 percent as compared to 2006 net income of $17.1 million, or $0.32 per diluted share.
The company's guidance for the first quarter of 2008 is predicated on a protracted weakness in the DRAM market. Revenues is expected to be in a range of $42 million to $48 million. Earnings are expected to range of a loss per share of $0.11 to $0.03.