(RTTNews) - Semiconductor processing equipment maker, Lam Research Corp. (LRCX: News ) Wednesday reported a substantial increase in its first-quarter profit, as lower expenses and improved gross margin helped offset decline in quarterly revenues. Strong shipments and revenue performance in the September quarter has helped the company to return to profitability sequentially.

For the first quarter, net income of Fremont, California-based Lam Research nearly doubled to $16.80 million or $0.13 per share from $8.87 million or $0.07 per share in the same quarter a year ago.

On average, 16 analysts polled by Thomson Reuters expected a loss of $0.08 per share for the quarter. Analysts' estimate typically excludes one-time items.

Ongoing net income was $4.2 million or $0.03 per share in the September 2009 quarter, compared to ongoing net loss of $57.0 million or $0.45 per share for the June 2009 quarter.

Lam Research's revenue for the quarter fell to $318.55 million from $440.36 million in the year-earlier quarter, but easily surpassed the Street estimates of $287.52 million.

Deferred revenue and deferred profit balances at the end of the September 2009 quarter were $89.7 million and $55.6 million, respectively. Deferred revenue balance does not include shipments to Japanese customers. However, the anticipated future revenue from shipments to Japanese customers was approximately $23 million as of September 27, 2009.

Hit hard by weakening demand, Lam Research has been struggling hard for a while to help out of the stranglehold created by global economic downturn. With recording profit for the current quarter, the company, however, has managed to break its losing streak, as for the past four consecutive quarters, it reported a loss.
Sequentially, in the fourth quarter, Lam Research reported a loss of $88.5 million or $0.70 per share on revenues of $217.8 million. Before that in the third quarter, impacted by hefty goodwill charge in to the fair value evaluation of the company's Clean Product Group, Lam Research recorded a loss of $198.36 million or $1.58 per share, with a 72% drop in revenues at $174.41 million.

Amongst others in the industry, Applied Materials, Inc. (AMAT) reported a loss in its third quarter, as sales dropped 39%, amid weak demand in light of the continuing global recession. Net loss for the third quarter was $54.9 million or $0.04 per share and net sales were $1.13 billion.

For the quarter under review, gross margin of Lam Research, as a percentage of revenue, was 42.9%, compared to 41.6% in the prior-year quarter. Gross margin was $136.77 million, compared to $183.11 million in the year-ago quarter.

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