Lam Announces Fiscal 1998 Third Quarter Results.FREMONT, Calif.--(BUSINESS WIRE)--April 16, 1998--Lam Research Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :LRCX), a leading supplier of wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. equipment to the worldwide semiconductor industry, today announced financial results for the company's third quarter of fiscal 1998, ended March 31, 1998. Revenue for the third quarter of fiscal 1998 was $240.0 million compared to revenue of $233.3 million for the prior year period. Geographic revenue distribution for the third quarter was: North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 43 percent; Europe, 22 percent; Korea, 4 percent; Japan, 6 percent; and Asia Pacific, 25 percent. As previously announced in February, Lam recorded a pre-tax restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of approximately $85.0 million to cover the effects of a reduction in its global workforce, as well as decisions to reduce its flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time and thermal chemical vapor deposition Chemical vapor deposition (CVD) is a chemical process used to produce high-purity, high-performance solid materials. The process is often used in the semiconductor industry to produce thin films. (CVD CVD Cardiovascular disease, see there ) operations, and to downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. and consolidate manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . Also in the third quarter of fiscal 1998, the company recorded a pre-tax charge of $12.1 million related to the purchase of a license for the MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. source technology from Trikon Technologies, Inc. Including the special charges and adjustments reported in the third fiscal quarter of 1998 and 1997, the company reported a net loss of $70.1 million, ($1.84 per share) for the quarter, compared to a net loss of $44.2 million, ($1.20 per share) for the prior year's third quarter. Excluding the special charges and adjustments described above, the company reported a net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $5.1 million, ($0.13 per share). This compares with a net loss of $4.9 million, ($0.13 per share), excluding approximately $63.0 million of adjustments, for the prior year's third quarter. "Revenue this quarter reflects the continued slowdown in capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by semiconductor manufacturers. Impacted by the financial crisis in Asia, customers in other regions have begun to push out capital expenditures," said James W. Bagley, chief executive officer for Lam. "These cutbacks in capital spending have resulted in an uncertain market environment in the near term," said Bagley. "Improved operational performance, coupled with a focus on strengthening our product portfolio will enable us to ensure the company is properly positioned as the business climate improves," concluded Bagley. Except for historical information, this press release contains certain forward-looking statements, including, but not limited to, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the release of new products, the forecasted expectation of future product sales, the significance of certain technology and the management of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of the company. These statements are subject to various risks, uncertainties and changes in condition, significance, value and effect that could cause results to differ materially and in ways not readily foreseeable, including, but not limited to, continued uncertainty surrounding the Asian financial crisis, the ability and commitment of current or future customers to meet their current or expected capital equipment purchase requirements, a downturn in the semiconductor industry generally, including the equipment industry specifically, competition, development or acceptance of new products or product technologies, challenges to existing or anticipated technology rights, and other risks detailed from time to time in the company's SEC reports, including the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June 30, 1997 and the Form 10-Q Form 10-Q See 10-Q. for the quarter ended Dec. 31, 1997. The company assumes no obligation to update the information in this release. Lam Research Lam Research Corporation (NASDAQ: LRCX) engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Corporation is a leading supplier of wafer fabrication equipment and services to the world's semiconductor industry. The company provides processing systems for dry etch To create a design in a material by digging out the material. The circuit designs on printed circuit boards and chips are etched by acid. See chip and printed circuit board. , CVD and chemical mechanical planarization, three essential steps in the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. . Lam's headquarters are located in Fremont. The company's common stock trades on the Nasdaq National Market under the symbol LRCX. Lam's Worldwide Web address is http://www.lamrc.com. -0-
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
1998 1997 1998 1997
Net sales $ 239,487 $ 232,602 $ 820,170 $ 778,643
Royalty income 531 664 1,830 11,933
--------- --------- --------- ---------
Total revenue 240,018 233,266 822,000 790,576
Cost and expenses:
Cost of goods sold -
on net sales 152,476 212,741 508,376 549,472
Cost of goods sold -
restructuring charge 19,553 -- 19,553 --
--------- --------- --------- ---------
Gross Margin 67,989 20,525 294,071 241,104
Research and
development 48,856 49,442 157,507 139,481
Selling, general and
administrative 47,537 51,073 154,196 151,205
Merger costs -- -- 17,685 --
Acquired in-process
research & development 12,100 -- 12,100 --
Restructuring charge 65,343 -- 65,343 9,021
--------- --------- --------- ---------
Operating loss (105,847) (79,990) (112,760) (58,603)
Other (income)
expense, net (1,605) (164) (341) 145
--------- --------- --------- ---------
Loss before
income taxes (104,242) (79,826) (112,419) (58,748)
Income
tax benefit (34,178) (35,601) (33,708) (29,548)
========= ========= ========= =========
Net loss $ (70,064) $ (44,225) $ (78,711) $ (29,200)
========= ========= ========= =========
Net loss per share
Basic $ (1.84) $ (1.20) $ (2.08) $ (0.79)
========= ========= ========= =========
Diluted $ (1.84) $ (1.20) $ (2.08) $ (0.79)
========= ========= ========= =========
Number of shares used in
per share calculation
Basic 38,025 36,928 37,930 36,781
========= ========= ========= =========
Diluted 38,025 36,928 37,930 36,781
========= ========= ========= =========
Note: Amounts presented above applicable to prior periods have
been restated to reflect the company's merger with OnTrak Systems,
Inc., accounted for as a pooling of interests. Net loss per share
amounts for prior periods have been restated to reflect the adoption
of Statement of Financial Accounting Standard No. 128.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, June 30,
1998 1997
Assets:
Cash and short-term investments $ 350,253 $ 195,693
Accounts receivable, net 229,005 232,073
Inventories 240,905 261,738
Other current assets 141,922 113,642
---------- ----------
Total current assets 962,085 803,146
Equipment/leasehold improvements, net 186,389 196,992
Restricted cash 52,000 --
Other assets 33,766 34,911
========== ==========
Total assets $1,234,240 $1,035,049
========== ==========
Liabilities and stockholders' equity:
Total current liabilities 310,852 340,975
Long-term debt and other 339,469 46,592
Stockholders' equity 583,919 647,482
========== ==========
Total liabilities and
stockholders' equity $1,234,240 $1,035,049
========== ==========
-0- Note: Amounts presented above applicable to prior periods have been restated to reflect the company's merger with OnTrak Systems, Inc., accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . CONTACT: Lam Research Corporation Lisa Garber, 510/572-4538 email: lisa.garber@lamrc.com Kathleen Bela, 510/572-4566 e-mail: kathleen.bela@lamrc.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion