Well it wasn't a BIG chip maker as they said...and it isn't as bad as he made it sound..
Thursday February 12, 4:08 pm Eastern Time
Company Press Release
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 operation 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. 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. |
