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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Henry Eichorszt who wrote (3169)	7/30/1999 4:14:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 5867

Lam Research Surges Earnings Report SAN FRANCISCO (Reuters) - Lam Research Corp. (Nasdaq:LRCX - news), a maker of semiconductor equipment, surged 17.4 percent after its fourth-quarter earnings blew past Wall Street estimates, as the company benefited from last year's major restructuring moves. Lam, based in Fremont, Calif., reported fourth-quarter net income of $11.3 million, or 28 cents a share diluted, versus a loss or $65.9 million, or $1.72 a share, a year before. According to First Call, which tracks analysts' estimates, the consensus among analysts was for a profit of 12 cents a share. Lam shares were up $8.125 to $54.50 in active trading on the NASDAQ Friday afternoon. ''A massive restructuring effort over the last fiscal year is finally starting to pay off in the form of stemmed market share losses...and innovative new products,'' said Min Pang, an SG Cowen & Co. analyst, in a note to clients. Pang said that he raised earnings estimates on Lam for fiscal 2000 to $2.45 a share, up from $1.59 previously, based purely on operating leverage. He continues to rate Lam a buy. During the semiconductor industry downturn last year, Lam implemented three restructuring moves, consolidating its facilities and layoffs in manufacturing and corporate support. The company cut its workforce by about 2,400 on a worldwide basis, through three separate layoff actions. Its profit reported Thursday was its first profit in six quarters, Pang noted. ''The new management team has done an excellent job improving operations, manufacturing flow and product costs,'' said Mark Fitzgerald, an analyst at Merrill Lynch, in a note to clients. ''The next step is to deliver a new product offering that can establish their leadership in etch and CMP.'' Etch and CMP (chemical mechanical planarization) refer to particular steps in the lengthy semiconductor manufacturing process. Etch refers to the process of etching the insulation layers on a semiconductor wafer, to expose the silicon beneath the insulation layers. CMP tools are for flattening the semiconductor wafers, after each new insulation layer is deposited, and then cleaning the wafer. Lam Research entered the CMP market in February 1998 with its first CMP tool, called the Teres. Just last month, Lam introduced a new etching product, called the Exelan oxide etch machine. Analysts said the company is gaining share in the etch business with the Exelan. ''Share gains in metal and oxide etch (are) evidence of strong customer acceptance of (its) improved tool set,'' said Erika Klauer, a Deutsche Banc Alex. Brown analyst. Klauer raised her earnings estimate on Lam to $2.54 a share for fiscal 2000, from $1.62 previously. dailynews.yahoo.com