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

To: Proud_Infidel who wrote (4167)	7/11/2000 8:23:53 PM
From: Proud_Infidel	Respond to of 5867

Article on component shortage: Chip-Equipment Growth Hurt By Shortages, Lam Says (Update2) By Cesca Antonelli San Francisco, July 11 (Bloomberg) -- Sales at semiconductor equipment companies will rise 55 percent this year, less than forecast, because of shortages of some parts, Lam Research Corp. Chief Executive Jim Bagley said. Sales of chip-manufacturing tools will reach $27.6 billion this year, lower than a $30.3 billion estimate predicted by market researchers, Bagley said. Bagley, an industry veteran who's closely watched by Wall Street, spoke to analysts in San Francisco. Chip-tool sales were $17.8 billion in 1999. Shortages of certain types of aluminum from Alcoa Inc. and some electrical components used in key subsystems have hurt sales, Lam said. Though the company is working with Alcoa and parts suppliers are boosting capacity now, the shortages may continue for another three or four months. ``Acute shortages are hobbling our ability to increase our revenue as fast as our customers would like,'' Bagley said. He said that ``55 percent is not bad growth in any industry in any time.'' Alcoa officials couldn't be reached for comment. Bagley expects industry sales to rise 29 percent to $35.6 billion in 2001. Lam, based in Fremont, California, makes equipment that etches away film to create circuit designs. Chipmakers such as Intel Corp. are rushing to add capacity to meet burgeoning demand for chips used in everything from cell phones and electronic organizers to personal computers. That's boosting orders at Lam and other companies for tools to build and test those chips. Capital spending at chipmakers will reach $48 billion this year and climb to $61 billion next year, Bagley predicted. ``The market outlook is, of course, very strong,'' he said. ``Capacity issues continue to drive bookings and revenue.'' The company also makes chip polishers and said eight customers use its polishers at 15 sites now. President Steve Newberry said he expects to add six more customers and hopes to hold 20 percent of the orders for those tools by year's end. Lam shares, which have dropped 4.2 percent this year, fell 1 1/4 to 35 5/8 today.