Novellus (San Jose, Calif.) reported sales of $306.7 million for the quarter ended Sept. 24, down 12 percent from the previous quarter and down 17 percent from the year-ago quarter. Novellus said its net income for the third quarter was $51.1 million, or 73 cents per share, a decline of $13.6 million from the second quarter and a decline of $25.2 million from the third quarter of 2010.
Novellus said its third quarter bookings decline to $226.9 million, down 27 percent from the previous quarter. Shipments amounted to $301.6 million, down 16.1 percent from the second quarter, Novellus said.
"The current global market volatility has affected capital intensive business investment but we are optimistic that the underlying demand for technology products will enable us to profitably ride through this period of uncertainty," said Richard Hill, Novellus chairman and CEO, in a statement.
"Specific to Novellus, we see continued uncertainty regarding the true opportunity in adjacent markets and gross margin headwinds from the Industrial business, with the main source of EPS upside coming from buybacks," Muse said.
Automated test equipment supplier Teradyne (North Reading, Mass.) reported third quarter sales of $344 million, down 16 percent from the previous quarter and down 30 percent from the third quarter of 2010. Teradyne reported a GAAP net income of about $192 million, or $1.15 per share, up 25 percent compared to the year-ago quarter.
Teradyne reported bookings of $240 million in the third quarter, $196 million from semiconductor test and $44 million from its system test group. The company did not say how the bookings compared with previous quarters.
"Semiconductor test orders and revenue softened in line with industry trends during the quarter, but we continued to see relative strength in the mobility segments driven by power management, image sensors, wireless and mobile processors," said Mike Bradley, Teradyne president and CEO, in a statement.
Teradyne said it expects sales to further decline in the fourth quarter to between $270 million and $300 million. Teradyne's fourth quarter guidance was generally in line with consensus analysts' expectations, according to Yahoo Finance.
Cadence (San Jose, Calif.) reported third quarter sales of $292 million, an increase of 23 percent compared to the third quarter of 2010. The company recognized a net income for the quarter of $28 million, or 10 cents per share, down from $127 million and 48 cents per share in the year ago quarter, when the company's results were boosted by a tax settlement.
Cadence's third quarter sales exceeded consensus analysts' of about $285 million and the company's non-GAAP earnings of 14 cents per share exceeded consensus analysts' expectations of 12 cents per share, according to Yahoo Finance.
Cadence and other EDA vendors recognize revenue over the life of a contract, not at the time of sale. EDA revenues tend to lag semiconductor industry upturns and downturns by several months.
"Strong design activity in multiple market segments continues to drive demand for our products and solutions," said Lip-Bu Tan, Cadence president and CEO, in a statement.
Cadence said it expects its revenue to grow in the fourth quarter to between $295 million and $305 million. The company said it expects its fourth quarter net income to be between 8 and 10 cents per share. For the full year, Cadence said it expects sales to be between $1.135 billion and $1.145 billion. The company said it expects to report an income for the year of 31 to 33 cents per share.
"Given the risks in the world economy we looked at our prospective Q4 business very closely, but still see good demand for products and services as reflected in our increased outlook," said Geoff Ribar, Cadence's senior vice president and chief financial officer.