Novellus Systems reports record results.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Jan. 20, 1997--Novellus Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM:NVLS NVLS Novellus Systems (stock symbol) ) on Monday reported record bookings, backlog, revenue and net income for the year ended Dec. 31, 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year were $461.7 million, an increase of 24 percent over 1995 net sales of $373.7 million. Net income for the year was $94.0 million, or $5.70 per share, up 14 percent and 18 percent, respectively from 1995 net income of $82.5 million, or $4.82 per share. For the fourth quarter ended Dec. 31, 1996, net sales were $104.6 million, a decrease of 5 percent from sales of $109.8 million in the same period of 1995. Net income for the quarter was $16.9 million, or $1.02 per share, down 32 percent and 30 percent respectively from the $24.8 million, or $1.45 per share, reported in the comparable period of 1995. Cash and short-term investments at Dec. 31, 1996 were $176.7 million, a quarterly record and up 18 percent from $149.8 million at the end of 1995. Backlog was $156.4 million, an increase of 3 percent from the $151.5 million reported at Dec. 31, 1995. Rick Hill, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "We were very pleased that we were able to achieve record results for the year despite the fact that the last six months results were affected by a worldwide slowdown in the demand for semiconductor capital equipment. We are continuing our commitment to new product development and the advanced R&D expenditures necessary, despite the temporary industry slump." Hill added: "We feel 1996 was a very successful year for Novellus in terms of product development. Early in the year we announced Speed, the industry's first high density plasma (HDP HDP High Density Polyethylene HDP High Density Plasma HDP Human Dimensions of Global Environmental Change Programme HDP Hazardous Duty Pay HDP Hurricane Destruction Potential HDP Hydrocarbon Dew Point HDP Hard Drive Password ) deposition solution capable for high-volume manufacturing and targeted for advanced inter-metal dielectric dielectric (dī'ĭlĕk`trĭk), material that does not conduct electricity readily, i.e., an insulator (see insulation). A good dielectric should also have other properties: It must resist breakdown under high voltages; it should not (IMD IMD - intermodulation distortion ) deposition for .35 micron devices and below. "We were extremely pleased with the customer reception and ramp-up sales for Speed during the year, and anticipate increasing success for this product as the industry shifts from TEOS TEOS Tetraethylorthosilicate TEOS Tetra Ethyl Oxysilane TEOS Trusted E-Mail Open Standard to HDP solutions for IMD deposition. We also announced `shrink' versions of our Altus, Sequel and Speed products with footprint dimension reduction of 45 percent, resulting in large throughput density improvements in customer facilities. "During the fourth quarter, we continued to broaden our process portfolio with the announcement of a new anti-reflection layer (ARL ARL - ASSET Reuse Library ) product for critical dimension (CD) control in advanced semiconductor devices. We believe that, when running on a Single Concept Two Sequel, the Novellus ARL product is the most cost-effective CD control device for device generations of .35 microns and below. Novellus products and processes introduced in 1996 continue to help semiconductor device makers increase capital productivity while transitioning to new process technologies for the manufacture of future generation devices." -0- NOTE: "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements regarding the company's commitment to new product strategies and research and development expenditures, increasing success, customer productivity improvement and cost-effectiveness of products introduced in 1996 are, except insofar in·so·far adv. To such an extent. Adv. 1. insofar - to the degree or extent that; "insofar as it can be ascertained, the horse lung is comparable to that of man"; "so far as it is reasonably practical he should practice as they described historical events, forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, that the company will deem it necessary to reduce advanced R&D expenditures, the rate of industry shift, if any, from TEOS to HDP solutions expected by the company, customer facilities throughput density improvements being less than the company anticipates, customers experiencing lower cost effectiveness in CD control than anticipated by the company, economic conditions, product demand and industry capacity, competitive products and pricing, manufacturing efficiencies, new product development, the availability of raw materials and critical manufacturing equipment, new plant startups, the regulatory and trade environment, patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the ability to enforce patents, and other risks indicated in filings with the Securities and Exchange Commission (SEC). Actual results may differ materially. The company assumes no obligation to update this information. For more details, please refer to Novellus' SEC filings, including its most recent Annual Report on Form 10K and quarterly report on Form 10Q. Novellus Systems Novellus Systems develops, manufactures, sells, and services semiconductor equipment used in the fabrication of integrated circuits. It is a leading supplier of chemical vapor deposition (CVD), physical vapor deposition (PVD), electrochemical deposition (ECD), chemical mechanical Inc. manufactures, markets and services advanced automated wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. systems for chemical vapor deposition Chemical vapor deposition (CVD) is a chemical process used to produce high-purity, high-performance solid materials. The process is often used in the semiconductor industry to produce thin films. (CVD CVD Cardiovascular disease, see there ) of thin films. All Novellus CVD systems are designed to solve manufacturing cost problems for the worldwide semiconductor manufacturing industry. The company's stock trades on the NASDAQ Stock Market's National Market under the symbol "NVLS." -0-
NOVELLUS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Net Sales $104,607 $109,797 $461,736 $373,732
Cost of Sales 46,032 46,116 197,162 157,585
Gross Profit 58,575 63,681 264,574 216,147
Operating Expenses
Research & Development 15,565 11,655 53,902 41,009
Selling, General and
Administrative 19,390 16,881 74,419 59,347
Total Operating Expenses 34,955 28,536 128,321 100,356
Income from Operations 23,620 35,145 136,253 115,791
Interest Income, Net 2,345 2,491 8,407 9,274
Income before Income
Taxes 25,965 37,636 144,660 125,065
Provision for Income
Taxes 9,087 12,796 50,631 42,522
Net Income $16,878 $24,840 $94,029 $82,543
Net Income Per Share $ 1.02 $ 1.45 $ 5.70 $ 4.82
Shares Used in Per Share
Calculations 16,590 17,137 16,509 17,137
-0-
NOVELLUS SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
Assets 1996 1995
Current Assets:
Cash & Short-Term Investments $176,668 $149,799
Accounts Receivable, Net 119,710 112,088
Inventories 55,448 36,779
Prepaid Taxes and Other
Current Assets 22,143 19,497
Total Current Assets 373,969 318,163
Property and Equipment, Net 66,218 42,379
Other Assets 19,600 4,146
Total Assets $459,787 $364,688
Liabilities & Shareholders' Equity
Current Liabilities:
Accounts Payable $26,047 $32,866
Short-Term Obligations 13,153 7,369
Other Accrued Liabilities 46,951 51,671
Total Current Liabilities 86,151 91,906
Shareholders' Equity:
Common Stock 128,751 118,423
Retained Earnings and Cumulative
Translation Adjustment 244,885 154,359
Total Shareholders' Equity 373,636 272,782
Total Liabilities &
Shareholders' Equity $459,787 $364,688
CONTACT: Bob Smith, Chief Financial Officer Novellus Systems Inc. 408/943-9700 |
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