Lam Research (LRCX, NASDAQ): To the Insiders Message Board

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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders

LRCX 211.92

-7.9%

2:54 PM EST

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To: William Nelson who wrote (1840)	2/21/1998 12:58:00 AM
From: Clarksterh	Read Replies (1) of 5867

Re What did Lam do wrong last year? Revenues grew only 4%. Is there something identifiable that got them off-track? Yup. 1) They lost market share due to the fact that they concentrated on leading edge tools and ignored cluster tools. That has now been rectified, (their cluster tools are growing phenomonally as a percent of revenues) but it is going to take a while to catch up. 2) They have never had as big a back log as other equipment makers, so in the last few quarters they were holding back on revenues in order to build up backlog. The same was not true at AMAT or NVLS, who already had an adequate backlog. 3) Finally, Lam exclusively builds front end equipment, unlike AMAT or KLA, and front end equipment didn't do nearly as well over the last year as did test and integration. Bottom line, they are going to have a rocky year, but they should have a full quiver for the beginning of the next explosion. Clark

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