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

To: cluka who wrote (5806)	10/10/2009 12:02:37 AM
From: etchmeister	Read Replies (1) \| Respond to of 5867

It's strictly up to you on how to value (NVLS) earnings potential - that's very subjective anywhere. But regardless how you value the earning potential you need to have an understanding of what the earnings potential is ... Richard S. Hill Yeah. You know, every time -- unfortunately, I’ve been here so long I know how it has always been. We’ve always operated on an out-source model, probably more than most companies operate on an out-source model. We’re constantly looking at when we can out-source more. Given the environment we’re in today with a very, very weak supplier chain, there are some areas where we are in fact having to in-source because the supply chain is so weak we can’t afford to subject our customers to a situation where we might not be able to get a particular part or a particular subsystem. But in general, we’re probably the most outsourced company within the industry. So in fact, we did teach [LAM] Research how to outsource, for those that haven’t been around long enough to really know that. So thank you. Steven Chen - UBS Hi, Rick -- Steven [Chen] from UBS. I just wanted to circle back on the $2 in earnings power that Tom talked about in 2011? What kind of industry growth are you looking at in terms of semiconductor CapEx growth in 2010 and 2011? Tom hit that number. Thomas Caulfield We said the CAGR between now and 2012 is a 14% for our [served] market. Steven Chen - UBS And maybe I could ask the question a different way -- what kind of operating margin do you think Novellus needs to hit to get to that $2 in EPS? I’m getting about 20% to 25% -- does that sound about reasonable? Thomas Caulfield Well, you take 50% gross margin, 50 to 52, 20% -- 28% OpEx, and a reasonable tax rate, 28%, 30% and you’ll get to that range. courtesy of seeking alpha seekingalpha.com