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

To: Cary Salsberg who wrote (4902)	10/16/2003 12:36:38 PM
From: Kirk ©	Read Replies (3) \| Respond to of 5867

Thanks I was struck by the question at the UTEK CC on options cash contribution. They said their cash flow was $600K positive then they say they gained $5.5M from options exercise. If employees were not getting free shares from the stockholders to sell at a profit with the exercise price going to fund growth, it looks like UTEK would have negative cash flow (or am I missing something in how cash flow is calculated?) I wonder if options exercise means more shares and Bagley didn't see that as the straight forward answer? I'll have to listen as I am now looking at this with a critical ear. I used to keep large positions through up and down cycles but if the options game is as bad as some say, I might reconsider this and move more towards your model of selling MORE of my shares once they hit targets. Kirk

To: Cary Salsberg who wrote (4902)	10/16/2003 3:06:44 PM
From: Proud_Infidel	Respond to of 5867

What analysts are saying about Lam Research Silicon Strategies 10/16/2003, 2:25 PM ET FREMONT, Calif. -- Except for its lackluster efforts in the chemical mechanical lanarization (CMP) tool market, Lam Research Corp. posted strong results or its most recent quarter, thanks to an onslaught of orders from Inotera Memories Ltd. in Taiwan,according to analysts. But still, there's uncertainty for Lam in the current period. On Wednesday, the Fremont-based supplier of chip equipment reported sales of $183.7 million in the quarter, down 1 percent from $186.1 million in the previous quarter, and down 7 percent from $197.5 million in the like period a year ago. It posted a net income of $4.8 million, or $0.04 per diluted share, compared to net income of $3.7 million, or $0.03 per diluted share, for the June 2003 quarter. In the like period a year ago, Lam posted a loss of $13.7 million, or minus $0.11 a share. Byron Walker, an analyst with UBS Securities LLC in New York, said that Lam beat Wall Street's estimates of $0.03 per share before special charges. "Lam reported good numbers," Walker said in a report issued today (Oct. 16, 2003). "Management continues to execute well on its outsourcing strategy, and reported market share gains during the quarter. More importantly, the order and revenue guidance indicates that business conditions are improving. This supports our thesis that order momentum will accelerate late in 2003/early 2004," he said. For its fiscal second quarter of 2004, Lam is projecting that orders will increase 10 percent quarter- over-quarter. "We were disappointed by the company's guidance of flat revenues and EPS of $0.03 to $0.04 (below pre-call consensus of $0.07) for the December quarter," he said. "However, it exceeded our expectations by guiding Q/Q revenue growth of 10 percent both for the Mar-04 and Jun- 04 quarters." Vijay Rakesh, an analyst with investment banking house Berean Capital Inc. in Chicago, also painted a mixed picture for Lam. "EPS of $0.04 was better than our consensus estimate of $0.03, despite lower revenue of $184 million, versus our estimate of $190 million," he said in a report issued today. The company is seeing orders in Asia-Pacific, excluding Japan. "Some 58 percent of the orders (are) DRAM related for the 110-nm node, primarily Inotera," he said, referring to the joint 300-mm DRAM venture in Taiwan between Germany's Infineon Technologies AG and Taiwan's Nanya Technology Corp. On the downside, Lam is struggling with its CMP tool, dubbed Teres. "The tool has undergone significant redesign, lowering its cost of ownership, and undergoing beta tests, but orders are still forthcoming," the report added.