Lam Research Corporation Announces Company Restructuring and Reduction
in Workforce
FREMONT, Calif.--(BUSINESS WIRE)--Feb. 12, 1998--Lam Research
Corporation (NASDAQ:LRCX - news), a leading supplier of wafer
fabrication equipment to the worldwide semiconductor industry, today
announced a restructuring of the company which includes a reduction in
its global workforce of approximately 14 percent. Lower prospects for
orders and revenue driven primarily by the Asian financial crisis are
cited as the reason for the action. The company will restructure to put
more focus on its core etch and Chemical Mechanical Planarization (CMP)
product groups and reduce its flat panel display and thermal CVD
operations. Manufacturing operations will be downsized and consolidated.
As a result of the organizational changes, approximately 700 employees
at locations throughout the company's global operations will be
affected.
Lam will take a pre-tax restructuring charge to earnings in the range of
$80 million to $85 million, or $1.47 to $1.57 per share, in the third
quarter of fiscal 1998. The restructuring charge includes costs related
to severance compensation and consolidation or closure of certain
facilities, as well as write-offs of assets utilized in affected
operations.
''A weaker order outlook over the next several quarters has made this
difficult decision necessary,'' said James W. Bagley, chief executive
officer for Lam. ''Industry demand for semiconductor equipment has
softened as a result of the financial crisis in Asia and the continued
depressed pricing environment for DRAM devices. This action will allow
us to align our cost structure with prevailing market conditions,
enabling us to fund research and development programs critical to our
long-term success.''
Lam Research Corporation is a leading supplier of wafer fabrication
equipment and services to the world's semiconductor industry. Lam's
headquarters are located in Fremont, California. The company's common
stock trades on the Nasdaq National Market under the symbol LRCX. Lam's
World Wide Web address is lamrc.com.
''Safe Harbor'' Statement Under the Private Securities Litigation Act of
1995: Except for historical information, this press release contains
certain forward-looking statements, including, but not limited to, those
statements related to the proposed restructuring and its effect on the
company's level of profitability. These statements are subject to
various risks and uncertainties that could cause results to differ
materially, including but not limited to the sufficiency of the size of
the restructuring, expansion of the financial crisis to other regions,
and other risks detailed from time to time in the company's SEC reports,
including the report on Form 10-K for the year ended June 30, 1997 and
the Form 10-Q for the quarter ended September 30, 1997. The company
assumes no obligation to update the information in this release.
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Contact:
Lam Research Corporation
Lisa Garber, 510/572-4538 (PR)
lisa.garber@lamrc.com
Kathleen Bela, 510/572-4566 (IR)
kathleen.bela@lamrc.com
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