Earnings Slip 24% at Novellus Systems

Novellus Systems Inc., a maker of equipment to build circuits on chips, said second-quarter earnings fell 24% to $59.2 million, or 40 cents a share, a penny better than the average estimate of analysts. Revenue rose 3.6% to $376.9 million, helped by sales of less-profitable tools.

Orders were $210 million, after Novellus booked $250 million in orders and had $40 million in cancellations, Chief Executive Rick Hill said.

Hill said that unless the company has a stronger-than-expected fourth quarter, orders for the full year 2001 will be $800 million, down from its previous forecast of $1 billion.

Shares of San Jose-based Novellus fell $3.61 to $46.37 on Nasdaq before the earnings report.