Soon to merge Lam, Novellus report sequential growth

Soon to merge Lam, Novellus report sequential growth

SAN FRANCISCO—Chip equipment vendors Lam Research Corp. and Novellus Systems Inc.—which are expected to officially merge sometime in the next few months—each reported quarterly results Wednesday (April 18) that topped consensus analysts' expectations and results from their previous quarters.

Lam announced in December that it would acquire Novellus in an all stock deal worth $3.3 billion. The deal is expected to close sometime before the end of May.

Lam (Fremont, Calif.) reported sales of $658.96 million for the quarter ended March 25, up 13 percent from the prior quarter but down 19 percent compared to the year-ago quarter. Lam reported a net income in accordance with generally accepted accounting principles of $45.6 million, or 38 cents per share, up 30 percent compared to the previous quarter but down 75 percent compared to the year ago quarter.

Lam's sales for the quarter beat consensus analysts' estimates of $643 million, according to Yahoo Finance.

Lam's shipments for the quarter were $713 million, up from $563 million in the previous quarter, the company said.

"Lam began 2012 on a strong note, delivering against our financial commitments for the March quarter while executing against the significant plans which support our strategic growth objectives," siad Martin Anstice, Lam's president and CEO, in a statement.

For the current quarter, which closes in June, Lam said it expects sales to increase to between $690 million and $710 million. The company expects shipments for the current quarter to be between $700 million and $750 million.

Novellus (San Jose, Calif.) reported first quarter sales of $326.7 million, up 16 percent from the previous quarter but down 21 percent compared to the first quarter of 2011. Novellus reported a first quarter net income of $44.4 million, or 59 cents per share, up 15 percent from the previous quarter and down 54 percent from the first quarter of 2011.

Novellus' first quarter sales topped consensus analysts' expectations of about $316 million, according to Yahoo Finance.

Novellus reported first quarter bookings of $361.7 million, up 26 percent from fourth quarter 2011 bookings of $287.1 million. First quarter shipments of $319.2 million were up 15 percent from $276.5 million in the fourth quarter of 2011, Novellus said.  

"With the integration planning between Novellus and Lam Research well underway, I've never been more confident that the combination of these two companies will create the most technologically and financially successful semiconductor capital equipment company in the industry, especially under the leadership team of Martin Anstice and Tim Archer," said Richard Hill, Novellus chairman and CEO, in a statement.


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