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

To: uu who wrote (1791)	2/12/1998 6:17:00 PM
From: Andrew Vance	Read Replies (6) \| Respond to of 5867

The following are some highlights gleaned from the Conference Call LRCX had moments ago with the investment community. It is brought to you as a courtesy of: SI - STOCK SWAP and Andrew Vance LRCX - Conference Call Notes (as best as I could take. Pardon the errors both in typing and interpretations) Restructuring: layoff 700 employees (14% of workforce) $80-85 million write off in the 3rd quarter or about $1.50 share Cost to curtail Flat Panel and CVD business and people costs to the business. Manufacturing of these products is being shutdown other than to barely sustain spare parts and accommodate existing customers wanting to finish out a planned installation toolset. Asset write down of Wilmington factory ($32 million), Severance pay $19 million, $32 million lease cancellations for buildings. Reducing businesses and cutting out R&D expenses. Needed to do this to sustain business at Break Even. Essentially, LRCX is now exiting the Flat Panel and Thermal CVD business. This is a positive for both NVLS and AMAT) 30% of write off related to Flat Panel and CVD (people, plant, equipment), severance, leases, and building/equipment. 70% Large hit in manufacturing and taking buildings out of service for the time being. Will lose 250 manufacturing employees. The will be stripping a building and writing off the leasehold improvements such that they could re-outfit it more in line with its future needs. No cutbacks in CMP other than temporary workforce. Reliability testing going on at a customer site. Software performance is a point of concern at this juncture since it is still an unknown. So far no issues but not enough verification. High Density Plasma CVD system business is close to having a good opportunity for company. Need to be successful in this endeavor with a specific customer to push forward in this technology. fingers crossed here. If they are not successful, it may be another business they exit. Overall Backlog is very small. $5 million loss expected for upcoming quarter which translates to a 0.13 loss per share. Over past 3 weeks, they have been looking at the forecasts and the Pacific Rim business. Cannot support a $255-275 million run rate over next 2-3 quarters. Break Even at $245 million. This quarter $240 million 13 cent loss earnings per share Revenues of $240-250 next 2 quarters, at best. Not optimistic for calendar year 98. Believes it will be 15% below last year. I think they also mentioned they need to work on service and customer support in the field. Korea/Japan - downside from both at around 15%. Doesn't believe the Rest of World make up this loss of business. Bad first half but better second half. They expect to lose marketshare in Korea. Orders in Korea were essentially zero due to lack of LOCs(letters of credit). With everything that is going on they still have ability to respond to any upside if this outlook changes. Japan weaker than thought - little impact on LRCX. Softening seen in their Logic and DRAM activity. Near term uncertainty on timing in Taiwan. Delays not cancellations. North America Flat to up with slight push outs. However, CEO seemed concerned with Samsung, Austin TX and Hyundai, Eugene OR. Europe looks good and on plan with the exception of Hyundai, UK. Uncertainty there. Softening in Foundry business is being seen. No one understands what is going on in Taiwan. 0.35u capacity is being underloaded. Heavily loaded at 0.50u and above. Prototyping work at 0.35u has not taken off in larger volumes from the customers. 0.35u products are not being put onto market as fast as predicted. Gross margins are going to be affected this quarter that we are presently in. Next Quarter's Gross Margins should be back on track. Wilmington was where they were building the alliance platforms and the Drytek systems. The Alliance platform will be shifted and moved to the Fremont facility. 1999 will be a very good year as Asia Stabilizes. BOOKINGS AND BACKLOG ARE ISSUES WITH NO REAL VISIBILITY.

To: uu who wrote (1791)	2/12/1998 7:04:00 PM
From: jbershad	Respond to of 5867

I wish you luck. At that price I will be in there buying. My guess is it will open near the close. If you listened to cnbc the commentator called the internet price at 26.67 Mentioned upgrades and went on to say he thought the price won't stay there long. (Bernstein upgraded stock.) When you buy this at 23 as I did and know the price will be 65 in a couple of years it really doesn't matter. Best of luck Jerry