FREMONT, Calif., April 16, 1998 - Lam Research Corporation (Nasdaq:LRCX), a leading supplier of wafer fabrication 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, 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 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 and thermal chemical vapor deposition (CVD) operations, and to downsize and consolidate manufacturing operations. 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 MORI 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 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 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 the release of new products, the forecasted expectation of future product sales, the significance of certain technology and the management of operating expenses 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 for the year ended June 30, 1997 and the Form 10-Q for the quarter ended December 31, 1997. The company assumes no obligation to update the information in this release.
Lam Research 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, CVD and chemical mechanical planarization, three essential steps in the fabrication of integrated circuits. Lam’s headquarters are located in Fremont, California. 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.
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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