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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: advocatedevil who wrote (45364)	4/11/2001 4:18:09 PM
From: Shoibal Datta	Read Replies (1) \| Respond to of 70976

Lam Research Corporation Announces Fiscal 2001 Third Quarter Results Additional Cost Cutting Measures to Include a Reduction in Global Headcount FREMONT, Calif.--(BUSINESS WIRE)--April 11, 2001--Lam Research Corporation (NASDAQ: LRCX - news) today announced financial results for the fiscal quarter ended March 25, 2001. Revenues of $421.5 million were 29 percent higher than the prior year. Profit before taxes for the quarter was $63.5 million, up $4.5 million from pre-tax income (excluding the benefit of a restructuring charge reversal) recorded in the corresponding quarter a year ago. Net income for the March 2001 quarter was $44.4 million, or $0.33 per diluted share. New orders for the period declined by approximately 60 percent when compared to the record levels attained in the previous quarter. Regional distribution of orders was as follows: North America, 35 percent; Europe, 24 percent; Japan, 8 percent; and Asia Pacific, 33 percent. Revenues fell sequentially by 15 percent as semiconductor manufacturers cancelled orders in backlog or postponed equipment deliveries. Sales distribution for the period was as follows: North America, 26 percent; Europe, 25 percent; Japan, 12 percent; and Asia Pacific, 37 percent. Cash, short-term investments and restricted cash increased to $505.2 million, the result of focused asset management programs. Gross margins decreased to 41.0 percent of revenues, the effect of customers requesting shipment delays within manufacturing lead times. Operating expenses declined to $114.0 million in the quarter compared to $128.9 million in the prior quarter, reflecting the initial impact of cost reduction measures. ``On February 28, the company announced several initiatives targeted at controlling costs, including executive pay reductions and mandatory shutdown days. While these steps have resulted in significant expense reductions, the further weakness in the wafer fab equipment market throughout March has necessitated more aggressive actions. As a result, we intend to reduce our global headcount by approximately 15 percent, to be implemented this month,'' stated James W. Bagley, Lam's chairman and chief executive officer. ``The wafer fab equipment industry is experiencing weakness across all geographic regions. A slowing economy, coupled with over capacity in the semiconductor industry, has resulted in a sharp reduction to our new orders, as well as push-outs and cancellations to our backlog.'' ``Despite these challenges, cyclical slowdowns in our industry are opportune times to strengthen our market position, and introduce new, leading edge products. We believe our products in etch and CMP address our customers' most pressing technical requirements, while delivering them cost of ownership advantages that are redefining this industry benchmark. We believe our 2300 family of next generation etch systems, targeted at 300 mm wafer processing, as well as our innovative CMP systems, will enable the company to continue to gain market share,'' Bagley concluded.

To: advocatedevil who wrote (45364)	4/11/2001 6:58:48 PM
From: mitch-c	Read Replies (1) \| Respond to of 70976

ST Trading - Options Well, I got caught up in my day job and didn't pay attention this morning ... otherwise I coulda/woulda/shoulda. I also wasn't expecting such an extreme move, so I didn't have any GTC orders in. Oh, well. The lemmings who see JJ's "news" tonight will probably give me a second try tomorrow. However, I did dump half of the APR 45 calls later in the day, to reduce exposure: in at 2.75, out at 3.60, 24.3% profit after costs. A skim of the LAM news tells me to expect a bump up because: 1) Anticipated bad news is out, reducing uncertainty; 2) Someone finally took a WAG at visibility, again reducing uncertainty. I'll plan accordingly. Now, the fickle market gets to make me eat the plan. <g> - Mitch