Press Releases

Lam Research Corporation Announces Fiscal 2001 Second Quarter Results

FREMONT, Calif. - January 23, 2001 - Lam Research Corporation (Nasdaq: LRCX ) today announced financial results for the fiscal quarter ended December 24, 2000. Record revenues of $494.3 million were 71 percent higher than the prior year and 14 percent greater than the quarter ended September 24, 2000. Excluding a one-time charge of $8.0 million for Intellectual Property purchased during the quarter, net income for the December quarter was $79.1 million, or $0.58 per share. Including one-time charges, net income of $73.5 million doubled when compared to the corresponding quarter ended December 26, 1999, resulting in earnings of $0.54 per diluted share.

Record new orders for the quarter exceeded the prior quarter by approximately 4 percent. Geographic distribution was as follows: North America, 29 percent; Europe, 22 percent; Japan, 9 percent; and Asia Pacific, 40 percent.

Revenues increased in all regions from the prior year's corresponding quarter. Sales distribution for the period was as follows: North America, 32 percent; Europe 25 percent; Japan, 16 percent; and Asia Pacific, 27 percent.

Gross margins increased to 46.7 percent of revenues compared to 43.5 percent for the quarter ended December 26, 1999, while operating expenses (excluding the one-time R&D charge) decreased as a percent of revenues to 24.5 percent, an all-time low for the company.

Cash, short-term investments and restricted cash increased to $457.5 million at the end of the period, the result of $95.8 million positive cash flow from operations.

"We are pleased with the results of the December quarter. Attaining record new orders and revenue in the current industry environment is a significant achievement," stated James W. Bagley, Lam's chairman and chief executive officer.

"For Lam, the calendar year ended with market share gains in etch, driven by major wins in oxide and polysilicon applications. With the successful introduction of the 2300 etch series, Lam's next generation suite of 200-mm and 300-mm capable etch products, we believe we are well positioned to achieve share gains as the 300-mm market begins to ramp. Our Teres® CMP system continues to gain market share and we are on target with our 300-mm CMP program as evidenced by our first 300-mm copper CMP system shipment in October."

"The company has posted seven consecutive quarters of improvements in recurring net profits. We believe the progress we have made in strengthening our operations will enable us to manage the company successfully during the current industry cycle," Bagley concluded.

Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited to, the prospective demand for the company's products, future market share projections, the company's ability to manage future market conditions, the company's plans and objectives for future operations, market oportunities and market and competitive conditions. Such statements are based on current expectations and are subject to risks, uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including, specifically the reports on Form 10-K for the fiscal year ended June 25, 2000, and on Form 10-Q for the quarter ended September 24, 2000, which could cause actual results to vary from expectations. The company undertakes no obligation to update the information in this press release.

Lam Research Corporation is a leading supplier of front-end wafer processing equipment and services to the worldwide semiconductor manufacturing industry. The company's common stock trades on the Nasdaq National Market under the symbol "LRCX". Lam's World Wide Web address is http://www.lamrc.com.

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