FREMONT, Calif. -- Lam Research Corp. here today (Feb. 28) announced that it would reduce its projections for the current quarter, prompting it to implement some cost-cutting measures to reduce costs.
The slowdown in the semiconductor-equipment business has prompted Fremont, Calif.-based Lam to cut executive salaries by about 10% and implement five mandatory shut down days per quarter.
All discretionary spending is also under priority review, said James W. Bagley, Lam's chairman and chief executive. "Our customers continue to report slowing end-user demand and softening business conditions," Bagley said. "Their capital spending plans are being adjusted accordingly. These factors have resulted in a reduction in new equipment orders, delivery push-outs and cancellations of systems in our backlog," he said.
As a result, the company issued a warning for the current quarter. "Driven by the uncertainties in the market today, the attainment of our previous guidance of $480-to-$490 million in revenue is at risk," he said. "Our revenue for the March quarter could decline as much as 15%, which would result in an impact to earnings," he said.