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

To: William Nelson who wrote (1840)	2/21/1998 12:58:00 AM
From: Clarksterh	Read Replies (1) \| Respond to of 5867

Re What did Lam do wrong last year? Revenues grew only 4%. Is there something identifiable that got them off-track? Yup. 1) They lost market share due to the fact that they concentrated on leading edge tools and ignored cluster tools. That has now been rectified, (their cluster tools are growing phenomonally as a percent of revenues) but it is going to take a while to catch up. 2) They have never had as big a back log as other equipment makers, so in the last few quarters they were holding back on revenues in order to build up backlog. The same was not true at AMAT or NVLS, who already had an adequate backlog. 3) Finally, Lam exclusively builds front end equipment, unlike AMAT or KLA, and front end equipment didn't do nearly as well over the last year as did test and integration. Bottom line, they are going to have a rocky year, but they should have a full quiver for the beginning of the next explosion. Clark