Semiconductor processing equipment maker Lam Research Corp. (LRCX), Wednesday reported a turn to profit in its second quarter on higher margins, improved shipments and strong revenues. Profit for the quarter came in above estimates, as did the revenues.
Net income of Fremont, California-based Lam Research was $69.57 million or $0.54 per share, compared to a loss of $24.17 million or $0.19 per share in the same quarter a year ago.
Ongoing net income, excluding previously announced restructuring activities, and other items, was $60.7 million or $0.47 per share in the quarter, compared to ongoing net loss of $11.7 million or $0.09 per share in the year-ago quarter.
On average, 15 analysts polled by Thomson Reuters expected earnings of $0.40 per share for the quarter. Analysts' estimate typically excludes one-time items.
Lam Research's revenue surged to $487.18 million from $283.41 million in the year-ago quarter, beating Street estimates of $453.59 million.
Deferred revenue and deferred profit balances at the end of the December 2009 quarter were $134.4 million and $73.9 million, respectively.
Sequentially, in the first quarter, Lam Research reported a substantial increase in profit to $16.80 million or $0.13 per share from $8.87 million or $0.07 per share, as lower expenses and improved gross margin helped offset decline in quarterly revenues. Revenue for the quarter fell to $318.55 million from $440.36 million.
Amongst others in the industry, Applied Materials, Inc. (AMAT), in its fourth quarter, reported a profit that fell 40% to $137.9 million or $0.10 per share, as sales dropped 25% amid weak demand in a difficult industry environment. Net sales were down 25% at $1.53 billion.
For the quarter under review, gross margin of Lam Research was $223.20 million or 45.8% of revenues, up from gross margin of $101.35 million or 35.8% of revenues in the same quarter last year.
Ongoing gross margin for the quarter was $218.5 million or 44.8%, compared to ongoing gross margin of $109.1 million or 38.5% for the same quarter last year.
Total operating expenses decreased to $131.86 million from $138.74 million in the year-earlier quarter. Operating income was $91.35 million, compared to operating loss of $37.39 million in the prior-year quarter.
Operating margin as a percentage of revenue was 18.8%, compared to negative 13.2% recorded in the year-ago quarter.
Shipments for the December 2009 quarter were $519 million, compared to $355 million during the September 2009 quarter.
For the six-month period, net income was $86.37 million or $0.67 per share, compared to a loss of $15.30 million or $0.12 per share in the prior year. Total revenue increased to $805.72 million from $723.77 million a year ago.
On January 11, 2010, brokerage firm UBS upgraded Lam Research shares to 'Buy' from 'Neutral,' with a mean target of $42.80.
LRCX closed Wednesday's regular trading at $35.54, up $0.54 or 1.54%, on a volume of 3.01 million shares. In after-hours, the stock further gained $0.71 or 2.00%, to trade at $35.54. In the last 52-week period, the stock traded in a range of $18.24 to $41.56, with a three-month average volume of 3.01 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.