UPDATE 1-Novellus' loss beats Street view, shares climb

* Q1 oper loss 47 cents/shr vs Street view of 52 cents

* Q1 revenue $98.9 mln vs Street view $101.7 mln

* Shares climb 4 percent after-hours

SAN FRANCISCO, April 22 (Reuters) - Semiconductor equipment maker Novellus Systems Inc (NVLS.O) on Wednesday posted a narrower-than-expected quarterly loss despite a steep fall in sales, sending its shares 4.3 percent higher after hours.

Novellus, which competes with Applied Materials Inc (AMAT.O) and Lam Research Corp (LRCX.O), reported a net loss in the first quarter ended March 28 of 69 cents a share, a reversal from the 15 cents a share profit a year earlier.

But excluding items such as a charge for a change in California tax law, Novellus posted a net loss of $45.5 million or 47 cents a share. Analysts had expected a loss of 52 cents a share, according to Reuters Estimates.

Revenue for the company plummeted 70 percent from a year ago to $98.9 million, versus an average analyst estimate of $101.7 million. The company said in February it expected revenue to drop to between $95 million and $110 million.

Shares of San Jose, California-based Novellus closed at $17.26 on the Nasdaq but rallied to $17.99 after-hours. (Reporting by Clare Baldwin; Editing Bernard Orr; peter.henderson@thomsonreuters.com; 1-415-677-2547)