Semiconductor manufacturing equipment maker Lam Research corp. has declared its results for the quarter ended December 2011. The results have been dis-appointing as profits have fallen over 85 percent as against the previous quarter. The company also incurred a one time expenditure on restructuring and acquisition costs. About Lam Research Lam Research Corp. is a major supplier of wafer fabrication equipment and services to the world’s semiconductor industry.
The Fremont, Calif.-based company posted net income of $33.2 million, or 27 cents per share, compared with $221.9 million, or $1.78 per share a year ago. Revenue fell to $584 million from $870.7 million a year ago. Excluding one-time costs, the company said it earned $41 million, or 34 cents per share. The results have been well below the analyst expectations. The stock is down by about 25 percent since last march.
With the global economy still recovering the company has been facing difficulties acquiring new clients. Added with increase in keep raw materials the company has not been able to maintain its margins over the long run. Research and development costs grew 15 percent to $104 million from $90.5 million. Selling and general administrative expenses rose 10 percent to $83.3 million from $75.9 million. Acquisition costs were around $6.9 million.
Commenting on the results CEO Martin Anstice stated “We believe that the complementary market positions, technologies, product capabilities and leadership of both companies will provide more comprehensive and faster solutions to our customers and provide improved financial performance for our shareholders,”
We maintain a sell on the stock at current price levels. The company has not provided future estimates at the moment.