Semiconductor equipment maker Lam Research Corp. (LRCX), Wednesday reported a sharply lower third-quarter profit, hurt by amortization charges related to its June 2012 acquisition of Novellus Systems Inc. Excluding items, adjusted earnings for the quarter topped Wall Street estimates on sturdy growth in revenues.
"Lam delivered solid March quarter results, which underscore our ability to execute well as a newly integrated company," said CEO Martin Anstice.
Lam Research is a major supplier of wafer fabrication equipment and services to the semiconductor industry.
The Fremont, California-based company reported quarterly net income of $19 million or $0.11 per share, sharply down from $45.6 million or $0.38 per share last year.
Results for the quarter included amortization charges of about $40 million and integration costs of nearly $15 million.
Excluding items, adjusted earnings for the quarter were $74.5 million or $0.44 per share.
On average, analysts polled by Thomson Reuters estimated earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $845 million, compared to $656 million a year ago.
Analysts on consensus estimated revenues of $838.33 million for the quarter.
"We are off to a great start this year and continue to make progress against our multi-year growth strategic plan by building upon our technology leadership in key product areas," said CEO Anstice.
Results were impacted by gross margin that slid to 40.2 percent from 40.5 percent a year ago, and operating margin plummeting to 1.3 percent from 8.8 percent.
Separately, Lam Research said its Board has authorized the repurchase of up to $250 million of its common stock. The company concluded its prior repurchase authorization in the amount of $1.6 billion, retiring about 44 million shares.
The company's stock closed Wednesday at $43.03, up 1.20%, on a volume of 1.8 million shares on the Nasdaq. In after hours, the stock gained $1.37 or 3.18%.
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