News

23 April 2009

 

Lam Research’s revenues fall 38%

For its fiscal third-quarter (to end-March 2009) , etch and wafer-cleaning equipment maker Lam Research Corp of Fremont, CA, USA has reported revenue of $174.4m, down 38% on $283.4m last quarter and 72% on $613.8m a year ago.

Due to a combination of factors (including the current economic environment, a sustained decline in the firm's market valuation, and a decline in operating results), Lam has concluded that the fair value of its Clean Product Group has been reduced below its carrying value. It has hence recorded a non-cash goodwill impairment charge of $89.1m.

Excluding this and other charges, ongoing gross margin has fallen from 47.8% a year ago and 38.5% last quarter to 26.8%, due mainly to lower manufacturing and field utilization levels resulting from reduced business activity as well as product mix. Ongoing net loss is $89.8m, compared to $11.7m last quarter and net income of $109.8m a year ago.

During the quarter, the firm paid the outstanding principal balance of $237.5m of its long-term debt. Cash and cash equivalents, short-term investments, and restricted cash and investments balances has fallen from $1.1bn to $806.4m.

“We are fortunate to have a strong balance sheet with sufficient cash to continue making investments in key R&D programs, place next-generation tools at customer sites for joint development projects and evaluations, and deploy inventories to meet short-term shipment requirements as well as respond to any future increases in demand,” says president & CEO Steve Newberry. “We are developing next-generation technology solutions alongside our customers and are continuing to win new application tool selection decisions in both etch and clean at the leading-edge technology nodes,” he adds.

“Our focus remains on investing in strategic opportunities while aggressively managing the cost structure and cash expenditures... This will enhance our ability to meet the expectations and needs of our customers and strengthen our market position for the next upturn,” Newberry concludes.

See related items:

Lam goes into loss; revenues to drop a further 38%

Lam expecting 35-39% sequential revenue drop

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