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Page one of eight pages.
Exhibit Index is on Page four.
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 1998
LAM RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 000-12933 94-2634797
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
4650 CUSHING PARKWAY, FREMONT, CALIFORNIA 94538
(Address of Principal Executive Offices)
(510) 659-0200
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report.)
<PAGE> 2
ITEM 5. OTHER EVENTS
On July 28, 1998, Lam Research Corporation (the "Company") announced the
financial results for the Company's fourth quarter and fiscal year ended June
30, 1998. Attached hereto as Exhibit 99.1 is the Company's press release dated
July 28, 1998.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Lam Research Corporation Press Release dated July 28, 1998.
2
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
DATED: August 13, 1998 LAM RESEARCH CORPORATION
By: /s/ Richard H. Lovgren
------------------------------
Name: Richard H. Lovgren
----------------------------
Title: Vice President, Secretary
and General Counsel
3
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Page No. in Sequentially
Exhibit No. Description Numbered Current Report
- ----------- ----------- ------------------------
<S> <C> <C>
99.1 Lam Research Corporation Press Release 5
dated July 28, 1998.
</TABLE>
4
<PAGE> 1
EXHIBIT 99.1
[LAM RESEARCH LETTERHEAD]
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contacts: Kathleen Bela Melodie Brenner
Investor Relations Corporate Communications
Lam Research Corporation Lam Research Corporation
Phone: 510/572-4566 Phone: 510/572-4523
Fax: 510/572-6454 Fax: 510/572-2935
e-mail: [email protected] e-mail: [email protected]
LAM ANNOUNCES FOURTH QUARTER AND YEAR-END 1998 RESULTS
FREMONT, Calif.-July 28, 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 fourth quarter
and fiscal year, ended June 30, 1998.
Revenues for the fourth quarter of fiscal 1998 were $230.6 million, compared to
revenues of $282.6 million for the fourth quarter of fiscal 1997. Geographic
revenue distribution for the quarter was: North America, 46 percent; Asia
Pacific, 25 percent; Europe, 23 percent; and Japan, 6 percent.
Lam recorded a charge in the fourth quarter of $64.0 million relating to
severance and other costs associated with the company's previously announced
restructuring and reduction in force. Including the restructuring charge, the
company reported a net loss of $65.9 million ($1.72 per share) for the fourth
fiscal quarter of 1998. This compares to a net loss of $1.5 million ($0.04 per
share) for the fourth fiscal quarter of 1997.
Excluding restructuring charges, the company reported gross margin of $92.5
million or 40.1 percent and a net loss of $1.9 million ($0.05 per share) for
the fourth fiscal quarter of 1998.
Cash and short-term investments increased to $397.2 million at June 30, 1998,
from $350.3 million at March 31, 1998.
For the twelve months ended June 30, 1998, the company reported revenues of
$1.1 billion, flat with fiscal year 1997 levels. Including one time charges,
the company reported a net loss of $144.6 million ($3.80 per share) for fiscal
1998 versus a net loss of $30.7 million ($0.83 per share) for fiscal 1997.
-more-
<PAGE> 2
LAM announces fourth quarter and year-end 1998 results.............page 2 of 4
"Clearly, this has been a difficult year for Lam as we have faced the combined
challenges of repositioning the company and doing so within what has become the
worst downturn the industry has seen in over a decade. We expect our business to
continue to be impacted over the next several quarters," stated James W. Bagley,
chief executive officer of Lam.
"Nevertheless, despite a worldwide slowdown throughout the semiconductor
equipment industry, we remain optimistic about the company's future. I am
pleased with the progress we have made with respect to strengthening our product
portfolio. We've also continued to execute to our operating plan as demonstrated
by our increased gross margins as a percentage of sales (excluding restructuring
charges), despite a declining revenue environment. I believe we will continue to
make improvements throughout this difficult period."
"This downturn is a strategic opportunity to build market share momentum as our
customers focus on developing advanced technology applications and enhancing the
productivity and cost structure within their existing fab lines. Lam is well
positioned in both of these critical areas. The company has made improvements
across all product lines during the past year. As a result, I believe we offer
the most innovative productivity solutions coupled with leading edge
capabilities extending below the 0.25 micron regime. This combination will
enable the company to take advantage of the market opportunities as the industry
recovers," Bagley concluded.
This press release contains certain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which
statements are subject to the Safe Harbor provisions created thereunder. Such
forward-looking statements include, but are not limited to, statements that
relate to the company's future revenue and operating expenses, management's
plans and objectives for future operations, the effect of any consolidation or
restructuring of operations on the company's future profitability, and a
continued downturn in the semiconductor market. Such statements are based on
current expectations that may involve 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 March 31, 1998. 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. Lam's headquarters are
located in Fremont, California. The company's common stock trades on the Nasdaq
National Securities Market under the symbol "LRCX." Lam's World Wide Web address
is "http://www.lamrc.com."
# # #
Consolidated Financial Tables Follow
<PAGE> 3
LAM announces fiscal 1998 fourth quarter results.....................page 3 of 4
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
June 30, June 30,
1998 1997 1998 1997
--------- --------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales $ 230,357 $ 281,892 $ 1,050,527 $ 1,060,535
Royalty income 229 729 2,059 12,662
--------- --------- ----------- -----------
Total revenue 230,586 282,621 1,052,586 1,073,197
Cost and expenses:
Cost of goods sold - on net sales 138,135 173,932 646,511 723,404
Cost of goods sold - restructuring charges 12,380 -- 31,933 --
--------- --------- ----------- -----------
Gross margin 80,071 108,689 374,142 349,793
Research and development 48,949 52,773 206,456 192,254
Selling, general and administrative 47,704 58,089 201,900 209,294
Merger costs -- -- 17,685 --
Acquired in-process research & development -- -- 12,100 --
Restructuring charges 51,582 -- 116,925 9,021
--------- --------- ----------- -----------
Operating loss (68,164) (2,173) (180,924) (60,776)
Other (income) expense, net (1,458) (62) (1,799) 83
--------- --------- ----------- -----------
Loss before income taxes (66,706) (2,111) (179,125) (60,859)
Income tax benefit (818) (635) (34,526) (30,183)
--------- --------- ----------- -----------
Net loss $ (65,888) $ (1,476) $ (144,599) $ (30,676)
========= ========= =========== ===========
Net loss per share
Basic $ (1.72) $ (0.04) $ (3.80) $ (0.83)
========= ========= =========== ===========
Diluted $ (1.72) $ (0.04) $ (3.80) $ (0.83)
========= ========= =========== ===========
Number of shares used in per share calculation
Basic 38,250 37,344 38,057 36,919
========= ========= =========== ===========
Diluted 38,250 37,344 38,057 36,919
========= ========= =========== ===========
</TABLE>
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.
<PAGE> 4
LAM announces fiscal 1998 fourth quarter results..................PAGE 4 OF 4
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
----------- -----------
<S> <C> <C>
Assets:
Cash and short-term investments $ 397,156 $ 195,693
Accounts receivable, net 176,029 232,073
Inventories 220,610 261,738
Other current assets 103,294 113,642
----------- -----------
Total current assets 897,089 803,146
=========== ===========
Equipment/leasehold improvements, net 144,252 196,992
Restricted cash 51,357 --
Other assets 58,074 34,911
----------- -----------
Total assets $ 1,150,772 $ 1,035,049
=========== ===========
Liabilities and stockholders' equity:
Total current liabilities 293,509 340,975
Long-term debt and other 334,174 46,592
Stockholders' equity 523,089 647,482
----------- -----------
Total liabilities and
stockholders' equity $ 1,150,772 $ 1,035,049
=========== ===========
</TABLE>
