Excluding a one-time charge of $13.2 million in connection with the Company’s acquisition of Gasonics, first quarter 2001 net income was $91.2 million or $0.62 per share. This represents a decrease of 8.7 percent from fourth quarter 2000 net income, excluding a one-time charge of $6.0 million for the write-off of in-process R&D, of $99.9 million or $0.68 per share, and an increase of 282.8 percent as compared to the first quarter 2000 net income of $23.8 million or $0.17 per share. First quarter 2001 net income, including the one-time charge for merger related costs, was $82.1 million or $0.55 per share. The results include Gasonics, which was acquired on January 10, 2001, and all per share amounts are stated on a fully diluted basis. The acquisition of Gasonics was accounted for as a pooling of interests. Accordingly, all financial information included herein has been restated to reflect the combined operations of Novellus and Gasonics.
Shipments of $413.1 million in the first quarter 2001 compared to $477.8 million in the fourth quarter of 2000, represent a decline of 13.5 percent. Deferred revenue at the end of the first quarter was $422.8 million.
Cash and short-term investments at March 31, 2001, were $1.2 billion, a decrease of $18.4 million over fourth quarter 2000 balances.
Richard Hill, chairman and chief executive officer said: The first quarter results have begun to show the impact of the global slowdown in semiconductor capital spending. It is the most rapid decline we have seen in this industry. Despite the current downturn in our business, we are committed to investing in areas of research and development that we believe will continue to propel Novellus’ position as a technology leader. We continue to solidify our position in copper with the recent announcements of UMC’s production order of SABRExT and TSMC’s selection of the CORAL low-k family of diffusion barrier/etch stop dielectric films. In addition, the acquisition of Gasonics was completed during the first quarter and the integration is well underway.
Additionally Hill stated, Our strategy is to exceed our customers expectations and in that regard, we are very proud to have been recognized by our customers for our efforts. During the first quarter, Intel selected Novellus to receive their prestigious ‘Supplier Continuous Quality Improvement’ award for the year 2000. Novellus also received the ‘Best Supplier’ award for 2000 from Samsung Electronics, and was the only non-Korean supplier to receive such an honor.
