Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Earnings: Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: SusieQ1065 who wrote (20)	7/24/2001 6:12:55 PM
From: SusieQ1065	Read Replies (1) \| Respond to of 266

LRCX ($24) P/E 12 Rev's Fell,"Our Visibility is Awful" Lam Research sales to keep falling By Chris Kraeuter, CBS.MarketWatch.com Last Update: 5:32 PM ET July 24, 2001 FREMONT, Calif. (CBS.MW) -- Semiconductor equipment firm Lam Research reported late Tuesday a 21 percent sequential drop in sales as demand for chips and chip equipment wanes. Further, Chairman and CEO James Bagley said Lam does not expect business to pick up during the new quarter as revenue is expected to decline another 7 percent to 12 percent sequentially. "Our visibility is awful," Bagley said during a conference call. "I don't see anything that will drive bookings other than the beginning of a recovery in semiconductor business and I don't know when that will occur." Ahead of the report, shares (LRCX: news, chart, profile) closed down $1.67, or 6.4 percent, at $24.36 on Tuesday. Lam reported fourth-quarter net income of $58.3 million, or 44 cents a share, on revenue of $365.5 million, a 21 percent decline from the previous quarter when revenue was $465.1 million and net income was $65.1 million, or 48 cents a share. Excluding a $16.8 million restructuring charge and a $33.1 million gain from derivatives, Lam's net income was $36.9 million, or 28 cents a share, which is double the average per-share earnings estimate of analysts surveyed by First Call/Thomson Financial. Sales decreased globally except Japan, on a sequential basis, and cancellations declined sequentially but were higher than expected. During the fiscal first quarter, revenue is expected to be $320 million to $340 million with earnings of 15 cents to 18 cents a share, excluding any one-time charges or derivative gains. Also, Bagley expects bookings to decline vs. the just completed quarter. As for whether the bottom is near, Bagley said he's not prepared to make that statement. "Certainly, we are getting down to where customers have to purchase equipment in order to sustain technology capabilities relative to needs in the industry and certainly in relation to what some of their competitors are doing," Bagley said. "There has to be a floor there someplace other than zero."