Novellus Systems posts $4 million loss in 3Q

Novellus Systems falls to $4 million loss in 3rd quarter amid weak sales

• On 5:17 pm EDT, Wednesday October 21, 2009

SAN JOSE, Calif. (AP) -- Novellus Systems Inc., which makes equipment for producing computer chips, said Wednesday it lost $4 million in the third quarter amid a sharp downturn in sales.

The company said its loss came to 4 cents per share during the three months ended Sept. 26. That's compared with a profit of $1.4 million, or a penny per share, in the same period a year ago.

Excluding some one-time items, the company lost 3 cents per share. The items included restructuring charges related to consolidation at its manufacturing facility in Tualatin, Ore., and several tax-related gains.

Sales fell 29 percent to $176.9 million from $250.1 million.

Analysts polled by Thomson Reuters expected a loss of 4 cents per share on sales of $172.4 million. Such estimates typically exclude one-time items.

Chairman and CEO Richard Hill said customer order activity picked up during the quarter and pointed out that the company recorded a narrower loss than in the second quarter. He said the company's restructuring efforts were "starting to show results."

Shares gained 22 cents to $21.83 in after-hours trading. The stock lost 22 cents to close at $21.61 during regular trading.