By Jerry A. DiColo Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Novellus Systems Inc. (NVLS) cut its fourth-quarter revenue and profit outlook Thursday, the latest sign of the continued deterioration of the market for the tools used to make semiconductors.
The San Jose, Calif., chip equipment maker now expects revenue of $207 million to $217 million, down from earlier guidance of $230 million to $243 million. The company now expects earnings of break-even to a loss of 6 cents a share, from a previous earnings range of 3 cents a share to break-even.
Gross margins are now expected at 42%, down from a range of 43% to 44%.
Novellus shares fell 2.1% to $10.40 in after-hours trading.
Chief Executive Rick Hill said that while the memory chip sector is the main source of weakness, the downturn of the semiconductor sector is directly related to the weakness of the consumer and broader economy, making any outlook particularly hazy.
"It's very difficult, if not impossible to project what's going to happen at this juncture," Hill said. "If we don't have consumers buying, we're not going to get out of this downturn."
-Jerry A. DiColo; Dow Jones Newswires; 201-938-5670; jerry.dicolo@dowjones.com
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(END) Dow Jones Newswires
November 20, 2008 17:16 ET (22:16 GMT)

Publié le 20 novembre 2008 Copyright © 2008 Dowjones