<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NOVELLUS
SYSTEMS, INC. 1996 IQ 10Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                          52,080
<SECURITIES>                                   106,242
<RECEIVABLES>                                  119,312
<ALLOWANCES>                                     2,366
<INVENTORY>                                     46,991
<CURRENT-ASSETS>                               342,644
<PP&E>                                          75,863
<DEPRECIATION>                                  26,238
<TOTAL-ASSETS>                                 394,933
<CURRENT-LIABILITIES>                           95,194
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       120,734
<OTHER-SE>                                     179,005
<TOTAL-LIABILITY-AND-EQUITY>                   394,933
<SALES>                                        115,284
<TOTAL-REVENUES>                               115,284
<CGS>                                           48,419
<TOTAL-COSTS>                                   48,419
<OTHER-EXPENSES>                                29,508
<LOSS-PROVISION>                                   170
<INTEREST-EXPENSE>                                  93
<INCOME-PRETAX>                                 39,245
<INCOME-TAX>                                    13,736
<INCOME-CONTINUING>                             25,509
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    25,509
<EPS-PRIMARY>                                     1.55
<EPS-DILUTED>                                     1.55