Novellus Systems, Inc.
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Novellus Systems, Inc. Financial Snapshot
Operating Performance
Fast Facts
4000 North First Street, San Jose, The company reported revenue of US$1,349.16
Headquarters Address
95134,Other million during the fiscal year 2010 (2010). The
company's revenue declined at a compounded rate of
Telephone + 14089439700
-5.03% during 2006–2010, with an annual growth of
111.07% over 2009. In 2010, the company recorded
Fax + 14089430202 an operating margin of 22.22%, as against -11.89% in
2009.
Website www.novellus.com
Ticker Symbol, Stock Exchange NVLS, NASDAQ Revenue and Margins
Number of Employees 2,700
Fiscal Year End December
Revenue (in US$ million) 1,349.16
SWOT Analysis
Strengths Weaknesses
Return on Equity
Global presence Lawsuits
The company recorded a return on equity (ROE) of
19.75% for 2010, as compared to its peers, Applied
Order backlog Overdependence on limited customers Materials, Inc. (Ticker: AMAT), KLA-Tencor
Corporation (Ticker: KLAC) and Tokyo Electron
Strong operational performance Limited (Ticker: 8035), which recorded ROEs of
12.44%, 9.45% and -1.76% respectively. The
company reported a net profit margin of 22.22% in
Opportunities Threats
2010.
Growing nanotechnology market Dependence on third party providers
Return on Equity
Growing semiconductor market Fluctuations in foreign currencies
New product innovations Government Regulations
Liquidity Position
The company reported a current ratio of 4.13 in 2010,
as compared to its peers, Applied Materials, Inc.,
KLA-Tencor Corporation and Tokyo Electron Limited,
which recorded current ratios of 2.34, 3.67 and 4.64
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$671.25 million, against zero current debt. The
company reported a debt to equity ratio of 0.08 in
2010 as compared to its peers, Applied Materials,
Inc., KLA-Tencor Corporation and Tokyo Electron
Limited, which recorded debt to equity ratios of 0.03,
0.33 and 0.00 respectively.
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Novellus Systems, Inc. - SWOT Profile Page 1
Novellus Systems, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Operational Efficiency ......................................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.2.5 Valuation ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................16
2.3.2 Efficiency ..........................................................................................................................................................17
2.3.3 Capital Expenditure ..........................................................................................................................................18
2.3.4 Valuation ..........................................................................................................................................................19
2.3.5 Turnover – Inventory and Asset .......................................................................................................................20
3 Recent Developments ........................................................................................................................... 21
4 SWOT Analysis ...................................................................................................................................... 23
4.1 SWOT Analysis - Overview ..................................................................................................................................23
4.2 Strengths ..............................................................................................................................................................23
4.3 Weaknesses .........................................................................................................................................................23
4.4