Novellus Profit Up 41% to $16.7 Million

Novellus Systems Inc., whose equipment builds circuits in computer chips, said first-quarter profit rose 41% after it increased sales and shipments.

Net income was $16.7 million, or 11 cents a share, compared with $11.9 million, or 8 cents, a year earlier, the San Jose-based company said. Sales increased 10% to $262.9 million.

Novellus and other chip-equipment makers are benefiting from growing confidence in future demand by chip makers. Chip-equipment industry sales are forecast to grow more than 40%.

Novellus shares rose 27 cents to $34.64 on Nasdaq. They rose to $35.14 in extended trading.