LRCX ( $25 ) Misses cuts work force Additional Cost Cutting
Measures to Include a Reduction in Global Headcount...
FREMONT, Calif.--(BUSINESS WIRE)--April 11, 2001--Lam Research Corporation (NASDAQ: LRCX - news) today announced financial results for the fiscal quarter ended March 25, 2001. Revenues of $421.5 million were 29 percent higher than the prior year. Profit before taxes for the quarter was $63.5 million, up $4.5 million from pre-tax income (excluding the benefit of a restructuring charge reversal) recorded in the corresponding quarter a year ago. Net income for the March 2001 quarter was $44.4 million, or $0.33 per diluted share.
New orders for the period declined by approximately 60 percent when compared to the record levels attained in the previous quarter. Regional distribution of orders was as follows: North America, 35 percent; Europe, 24 percent; Japan, 8 percent; and Asia Pacific, 33 percent.
Revenues fell sequentially by 15 percent as semiconductor manufacturers cancelled orders in backlog or postponed equipment deliveries. Sales distribution for the period was as follows: North America, 26 percent; Europe, 25 percent; Japan, 12 percent; and Asia Pacific, 37 percent.
Cash, short-term investments and restricted cash increased to $505.2 million, the result of focused asset management programs.
Gross margins decreased to 41.0 percent of revenues, the effect of customers requesting shipment delays within manufacturing lead times. Operating expenses declined to $114.0 million in the quarter compared to $128.9 million in the prior quarter, reflecting the initial impact of cost reduction measures.
``On February 28, the company announced several initiatives targeted at controlling costs, including executive pay reductions and mandatory shutdown days. While these steps have resulted in significant expense reductions, the further weakness in the wafer fab equipment market throughout March has necessitated more aggressive actions. As a result, we intend to reduce our global headcount by approximately 15 percent, to be implemented this month,'' stated James W. Bagley, Lam's chairman and chief executive officer.
``The wafer fab equipment industry is experiencing weakness across all geographic regions. A slowing economy, coupled with over capacity in the semiconductor industry, has resulted in a sharp reduction to our new orders, as well as push-outs and cancellations to our backlog.''
``Despite these challenges, cyclical slowdowns in our industry are opportune times to strengthen our market position, and introduce new, leading edge products. We believe our products in etch and CMP address our customers' most pressing technical requirements, while delivering them cost of ownership advantages that are redefining this industry benchmark. We believe our 2300 family of next generation etch systems, targeted at 300 mm wafer processing, as well as our innovative CMP systems, will enable the company to continue to gain market share,'' Bagley concluded.
Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited to, the prospective demand for the company's products, future market share projections, the company's ability to manage future market conditions, the company's plans and objectives for future operations, market opportunities, future product performance and market and competitive conditions.
Such statements are based on current expectations and are subject to risks, uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including, specifically the reports on Form 10-K for the fiscal year ended June 25, 2000, and on Form 10-Q for the quarter ended December 24, 2000, which could cause actual results to vary from expectations. The company undertakes no obligation to update the information in this press release.
Lam Research Corporation is a leading supplier of front-end wafer processing equipment and services to the worldwide semiconductor manufacturing industry. The company's common stock trades on the Nasdaq National Market under the symbol ``LRCX''. Lam's World Wide Web address is lamrc.com.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Mar 25, Mar 26, Mar 25, Mar 26,
2001 2000 2001 2000
---------- ----------- ----------- -----------
Total revenue $ 421,525 $ 326,349 $ 1,347,898 $ 856,551
Cost and
expenses:
Cost of
goods sold 248,541 182,212 744,747 485,927
Cost of
goods sold -
on restructuring
recovery -- (849) -- (849)
---------- ----------- ----------- -----------
Gross margin 172,984 144,986 603,151 371,473
Research and
development 58,791 45,881 174,044 125,429
Selling, general
and
administrative 55,167 41,147 170,269 113,647
Restructuring
recovery -- (18,083) -- (18,083)
Purchased
technology
for research
and development -- -- 8,000 7,460
---------- ----------- ----------- -----------
Operating
income 59,026 76,041 250,838 143,020
Other income, net 4,429 1,883 11,994 5,013
---------- ----------- ----------- -----------
Income
before income
tax expense 63,455 77,924 262,832 148,033
Income tax
expense 19,037 10,909 78,857 19,628
---------- ----------- ----------- -----------
Net income $ 44,418 $ 67,015 $ 183,975 $ 128,405
---------- ----------- ----------- -----------
Net income
per share
Basic $ 0.36 $ 0.55 $ 1.49 $ 1.07
========== =========== ========== ===========
Diluted (1) $ 0.33 $ 0.48 $ 1.36 $ 0.97
========== =========== ========== ===========
Number of
shares
used in
per share
calculation
Basic 123,182 122,646 123,693 119,747
========== =========== ========== ===========
Diluted 141,901 145,931 142,400 131,752
========== =========== ========== ===========
(1) Diluted earnings per share for the three and nine-month periods
ended March 25, 2001 and for the three month period ended March
26, 2000 assumes conversion of convertible subordinated notes.
Accordingly, interest expense net of taxes of $3,025, $9,075 and
$3,717, respectively, must be added to net income for computing
diluted earnings per share. Conversion of the convertible
subordinated notes for the nine-month period ended March 26, 2000
was antidilutive and therefore excluded from the calculation of
diluted earnings per share.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 25, June 25,
2001 2000
(Unaudited) (2)
----------- -----------
Assets:
Cash and short-term investments $ 444,868 $ 371,722
Accounts receivable, net 362,300 323,935
Inventories 328,429 227,169
Other current assets 108,574 98,509
----------- -----------
Total current assets 1,244,171 1,021,335
Equipment/leasehold
improvements, net 133,115 119,192
Restricted cash 60,348 60,348
Other assets 56,811 43,962
----------- -----------
Total assets $ 1,494,445 $ 1,244,837
=========== ===========
Liabilities and
stockholders' equity:
Total current liabilities $ 326,124 $ 287,756
Long-term liabilities and other 312,163 321,657
Stockholders' equity and
temporary equity 856,158 635,424
----------- -----------
Total liabilities and
stockholders' equity $ 1,494,445 $ 1,244,837
=========== ===========
(2) Derived from June 25, 2000 audited financial statements. |
