QUOTE AND NEWS
Agoracom  Oct 17  Comment 
Welcome to Beyond The Press Release, a production of AGORACOM in which we speak to Small Cap CEOs and executives about their recent press releases. With us today is Dr. Chris D’Couto President of Neah Power Systems. Neah Power Systems is a...
Forbes  May 13  Comment 
This article is by Richard S. Hill, the chairman and interim chief executive of Tessera, a designer of semiconductor miniaturization technologies. He previously served as CEO of Novellus.
StreetInsider.com  Jan 31  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Dyax+%28DYAX%29%2C+Novellus+Enter+KALBITOR+Development+Collaboration/8046019.html for the full story.
Benzinga  Aug 29  Comment 
Tessera Technologies, Inc. (NASDAQ: TSRA) (the “Company”) announced today that it has appointed Richard “Rick” S. Hill and Timothy “Tim” J. Stultz, Ph.D. to its board of directors, effective immediately. Hill...
Globe Newswire  Jun 4  Comment 
Aurora, IL, June 4, 2012 (GLOBE NEWSWIRE) -- Cabot Microelectronics Corporation, the leading supplier of chemical mechanical planarization (CMP) polishing slurries and a growing pads supplier to the semiconductor industry, is pleased to announce
Marketwire  Jun 4  Comment 
FREMONT, CA -- (Marketwire) -- 06/04/12 -- Lam Research Corp. (NASDAQ: LRCX) today announced that it has completed its merger with San Jose, Calif.-based Novellus Systems, Inc., (NASDAQ: NVLS). With today's transaction close, Novellus shareholders
MarketWatch  Jun 1  Comment 
Lam Research Corp. and Novellus Systems Inc. have now secured all required approvals to proceed with their previously announced merger, the companies said. It's expected to be completed after the close of trading on June 4. Fremont, Calif.-based...
StreetInsider.com  Jun 1  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Lam+Research+%28LRCX%29%2C+Novellus+%28NVLS%29+Clear+Final+Hurdle+in+Proposed+Merger/7485754.html for the full story.
Market Intelligence Center  Jun 1  Comment 
Novellus Systems Inc (NASDAQ: NVLS) closed Thursday's trading session at $41.83. In the past year, the stock has hit a 52-week low of $25.95 and 52-week high of $50.54. Novellus Systems (NVLS) stock has been showing support around $40.94 and...




 
TOP CONTRIBUTORS

Novellus Systems, Inc. (NVLS) is organized into two large segments: the semiconductor group and the industrial applications group. The semiconductor group manufactures, sells and supports equipment used in the fabrication of integrated circuits and semiconductors. The industrial applications group develops, manufactures, sells and supports grinding, lapping and polishing equipment for optimization and serves a range of industrial applications.[1] Due to the cyclicality of the semiconductor industry, all of the semiconductor industry companies including NVLS is highly prone to the macroeconomic landscape.

Business Growth

Novellus, due to its industry focus on semiconductors, is prone to dramatic changes in demand based on the global economic standing. The company rebounded from a recession low of $632.9 million in 2009 revenue to $1.3 billion in revenue in 2010.[2]. However, net income has stagnated due to the natural decline in prices of semiconductors and chipsets.[2]

Key Trends and Forces

Dependence on Asia

NVLS, along with the majority of the semiconductor industry, depend on the business and resources of Asia. China provides nearly half of Novellus's revenues[3]. Many semiconductor companies have a strong presence in Asia since being well developed in China could prove prudent considering China's growth.

Threat from Semiconductor Cyclicality

NVLS's performance is tied to the ups and downs of the semiconductor industry, an industry that is notoriously cyclical. The semiconductor industry is affected by the fluctuating demand for PCs and cell phones, and by the rest of the electronics market. The demand in up cycles is so high that the chip manufacturers can't keep up. Similarly, if electronic sales, particularly PC sales, are slow, demand for chips can plummet. The semiconductor industry is at the whim of consumer demand more than corporate demand. This fact also adds to volatility in demand. If semiconductor companies anticipate a downturn in the industry then NVLS will likely feel the pressure from capital expenditure cutbacks.

Competition

Novellus's main competitors are:

Due to the inherent nature of the industry, competition is very intense. Fabrication labs are forced to cut costs as efficiently as possible to ensure the sustainability of their sales and net income.



References

  1. Reuters: Company Profile - NVLS
  2. 2.0 2.1 Wikinvest SEC Files: NVLS 2010 10-K, Item 6
  3. Wikinvest SEC Files: NVLS 2010 10-K, Item 8 Note 19
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