LRCX Lam Research Corporation

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By Paul Ziobro

Lam Research posted another sharp drop in quarterly profit and revenue as the pullback in spending on semiconductor manufacturing equipment pressured results.

The Fremont, Calif.-based company, which manufactures and services equipment used to make semiconductors, on Wednesday reported a profit of $954.3 million, or $7.22 a share, for the quarter ended December 24, compared with $1.49 billion, or $10.77 a share, in the same quarter a year earlier.

Adjusted for certain items, earnings came in at $7.52 a share. Analysts polled by FactSet expected $7.12 a share.

Revenue fell nearly 29% to $3.76 billion, ahead of analyst estimates for $3.72 billion.

Both profit and revenue have dropped significantly for three consecutive quarters due to what the company has called a cyclically soft year for wafer fabrication equipment spending.

Chief Executive Tim Archer said the latest quarter's results were a solid close to 2023 and that the company is poised to benefit from the growth of artificial intelligence. "We are in a strong position to benefit as innovations such as AI power robust semiconductor industry growth in the years to come," he said.

For the current quarter ending March 31, Lam Research expects adjusted per-share earnings of between $6.50 and $8 and revenue of $3.4 billion to $4 billion.

Analysts were looking for adjusted earnings of $6.63 per share on revenue of $3.68 billion.

Write to Paul Ziobro at paul.ziobro@wsj.com

(END) Dow Jones Newswires

January 24, 2024 16:42 ET (21:42 GMT)

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