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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (6248)	10/17/2002 4:18:06 PM
From: The Ox	Read Replies (2) \| Respond to of 95427

Lam Research Corporation Announces Financial Results for the Quarter Ended September 29, 2002 Thursday October 17, 4:09 pm ET FREMONT, Calif.--(BUSINESS WIRE)--Oct. 17, 2002--Lam Research Corporation (Nasdaq:LRCX - News) today announced financial results for the quarter ended September 29, 2002. Revenues of $197.5 million increased approximately 10% sequentially. Net loss for the quarter was $13.7 million, or $0.11 per diluted share, including a non-taxable loss of $16.4 million on equity derivative contracts in Lam stock recorded in Other Expense. This compares to net losses of $31.0 million, or $0.24 per diluted share, in the June 2002 quarter, which included losses of $26.0 million on equity derivative contracts and a restructuring reserve recovery of $4.1 million. For the September quarter, excluding the charges outlined above, income after tax was $0.02 per diluted share. New orders of $185 million decreased sequentially, approximately 21 percent. Regional distribution of new orders was North America, 37 percent; Europe, 23 percent; Japan, 9 percent; and Asia Pacific, 31 percent. Geographical breakdown of revenue for the quarter was North America, 23 percent; Europe, 18 percent; Japan, 11 percent; and Asia Pacific, 48 percent. Production output for the period was approximately $212 million. Gross margin for the September quarter improved to $79.0 million or 40.0 percent of revenue, compared to 35.9 percent of revenue in the prior quarter, excluding the restructuring reserve recovery recorded in June. The increase in gross margin as a percent of revenue stems from improved manufacturing utilization and a more favorable product mix. Operating expenses of $74.7 million declined from the prior quarter after excluding the restructuring reserve recovery recorded in June. Cash, Short-term Investments, and Restricted Cash totaled $602.4 million at the end of the quarter, after the previously announced $309.8 million notes repayment and $39.1 million purchase of Lam common stock resulting from settlement of all equity derivative contracts during September. "Total orders in the semiconductor equipment industry declined in the September quarter, reflecting cut-backs and delays in capital spending as announced by several customers. Demand drivers for integrated circuits remain uncertain with market researchers expecting continued weakness in the PC and communications markets," stated James W. Bagley, chairman and chief executive officer. "Although our business reflects these industry conditions, we had several key accomplishments this quarter. We met our revenue and operating profit objectives, generated cash from operations, and completed several phases of our outsourcing initiatives. Although the environment remains challenging, I am pleased with the Company's performance this quarter. We will continue to manage our expenses prudently and invest in R&D to ensure we are well positioned for the next cycle of growth in capital spending," Bagley concluded.