Lam Research (LRCX) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE

Lam Research Corporation Contact:
Kathleen Bela, Investor Relations, phone: 510/572-4566, e-mail: kathleen.bela@lamrc.com

Lam Research Corporation Announces Earnings for the Quarter Ended March 27, 2005

FREMONT, Calif., April 13, 2005—Lam Research Corporation (Nasdaq: LRCX) today announced earnings for the quarter ended March 27, 2005. Revenue for the period was $349.3 million, and net income was $59.5 million, or $0.41 per diluted share, compared to revenue of $379.8 million and net income of $83.6 million, or $0.59 per diluted share, for the December 2004 quarter. Gross margin and operating expenses for the March 2005 quarter were $174.6 million and $95.9 million, respectively.

The Company believes the presentation of ongoing results, which excludes certain special items, is useful for analyzing ongoing business trends. During the March 2005 quarter, the Company received a tax refund, which is recorded in selling, general and administrative expenses. The Company also recognized additional liabilities for unoccupied facilities included in prior restructuring plans. Tables that provide reconciliations of ongoing performance to results under U.S. Generally Accepted Accounting Principles (GAAP) are included at the end of this press release and on the Company’s web site.

Ongoing gross margin for the March 2005 quarter was 50.0 percent of revenue compared to 52.4 percent of revenue in the December 2004 quarter. The gross margin achieved for the March 2005 quarter was a result of lower installation and warranty expenses and improved field resource utilization. In the period, ongoing operating expenses remained essentially flat sequentially at $89.7 million. Ongoing net income of $64.1 million, or $0.44 per diluted share, in the March 2005 quarter compares with ongoing net income of $83.6 million, or $0.59 per diluted share, for the December 2004 quarter.

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Lam Announces Earnings for the March 2005 Quarter Page 2 of 6

New orders recorded in backlog decreased 19% sequentially to $315 million. The geographic distribution of new orders as well as revenue during the March quarter is shown in the following table:

Region	New Orders			Revenue
North America		16	%		17	%
Europe		19	%		13	%
Japan		22	%		18	%
Korea		14	%		35	%
Asia Pacific		29	%		17	%

Cash, short-term investments and restricted cash balances increased to $838.8 million at the end of March, and cash flows from operating activities were approximately $101 million during the quarter. Deferred revenue and deferred profit balances increased to $152.8 million and $86.9 million, respectively, and unshipped orders in backlog were approximately $399 million at the end of the quarter. The value of orders shipped from backlog to Japanese customers that are not recorded as deferred revenue was approximately $49 million.

“The Company continues to deliver solid financial results in the current industry environment. Strong cash generation, healthy gross margins, and good expense management reflect our commitment to increasing shareholder value,” stated James W. Bagley, Lam’s Chairman and Chief Executive Officer.

“In 2004, we announced a $250 million stock buy-back program. In this quarter we purchased approximately $68 million of common stock and plan to continue to exercise the approved plan over the coming periods.”

“The strength in our financial performance is driven by our continuing success in the markets we serve. For the fourth consecutive year, Lam is the number one provider of etch equipment to the semiconductor industry, as reported by a number of industry research firms. We believe we are well-positioned to continue to expand our market leadership, as well as our strong financial results,” Bagley concluded.

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Lam Announces Earnings for the March 2005 Quarter Page 3 of 6

Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to our future financial performance, our ability to maintain and expand our market leadership and strong financial results, our future ability to increase gross margins, generate cash and control costs, and our plans for repurchasing our common stock. Some factors that may affect these forward-looking statements include: changing business conditions in the semiconductor industry and our plans for reacting to those changes, changing customer demands, our competitors’ development of new technologies that could affect our market share, margins and cash generation, and future changes to our cash requirements or spending opportunities that alter our perception of the best way to use the Company’s cash reserves. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including specifically the reports on Form 10-K for the year ended June 27, 2004, and the Form 10-Q for the quarter ended December 26, 2004, which could cause actual results to vary from expectations. The Company undertakes no obligation to update the information or statements made in this press release.

Lam Research Corporation is a major supplier of wafer fabrication equipment and services to the world’s semiconductor industry. Lam’s common stock trades on the Nasdaq National Market under the symbol LRCX. The Company’s World Wide Web address is http://www.lamrc.com.

Consolidated Financial Tables Follow

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Lam Announces Earnings for the March 2005 Quarter Page 4 of 6

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)

	Three Months Ended									Nine Months Ended
	March 27,			December 26,			March 28,			March 27,			March 28,
	2005			2004			2004			2005			2004
Total revenue	$	349,337		$	379,800		$	231,128		$	1,148,686		$	606,374
Cost of goods sold		174,767			180,898			125,337			560,453			336,179
Cost of goods sold - restructuring recoveries		—			—			(322	)		—			(1,651	)
Total cost of goods sold		174,767			180,898			125,015			560,453			334,528
Gross margin		174,570			198,902			106,113			588,233			271,846
Gross margin as a percent of revenue		50.0	%		52.4	%		45.9	%		51.2	%		44.8	%
Research and development		47,226			47,057			42,914			144,641			120,518
Selling, general and administrative		34,518			43,275			37,218			120,920			105,352
Restructuring charges, net		14,201			—			1,317			14,201			8,327
Total operating expenses		95,945			90,332			81,449			279,762			234,197
Operating income		78,625			108,570			24,664			308,471			37,649
Other income, net		643			1,298			877			1,949			2,794
Income before income taxes		79,268			109,868			25,541			310,420			40,443
Income tax expense		19,817			26,254			6,385			77,605			10,110
Net income	$	59,451		$	83,614		$	19,156		$	232,815		$	30,333
Net income per share:
Basic	$	0.42		$	0.61		$	0.14		$	1.69		$	0.23
Diluted	$	0.41		$	0.59		$	0.13		$	1.64		$	0.22
Number of shares used in per share calculations:
Basic		139,967			137,255			133,251			137,566			130,893
Diluted		144,756			142,268			147,365			142,362			138,527

Lam Announces Earnings for the March 2005 Quarter Page 5 of 6

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	March 27,		December 26,		June 27,
	2005		2004		2004
	(unaudited)		(unaudited)		(1)
Assets:
Cash, cash equivalents and short-term investments	$	726,292	$	649,400	$	429,472
Accounts receivable, net		257,496		248,498		245,508
Inventories		120,353		129,302		108,249
Other current assets		79,739		70,025		113,159
Total current assets		1,183,880		1,097,225		896,388
Property and equipment, net		43,167		45,154		42,444
Restricted cash		112,468		112,468		112,468
Other assets		143,506		139,154		147,326
Total assets	$	1,483,021	$	1,394,001	$	1,198,626
Liabilities and stockholders’ equity:
Current liabilities	$	375,352	$	356,584	$	376,606
Other long-term liabilities	$	3,318	$	7,268	$	9,554
Stockholders’ equity		1,104,351		1,030,149		812,466
Total liabilities and stockholders’ equity	$	1,483,021	$	1,394,001	$	1,198,626

(1) Derived from audited financial statements

Lam Announces Earnings for the March 2005 Quarter Page 6 of 6

Reconciliation of U.S. GAAP Net Income to Ongoing Net Income
(in thousands, except per share data and percentages)

	Three Months Ended
	March 27,			December 26,
	2005			2004
U.S. GAAP net income	$	59,451		$	83,614
Pre-tax net tax refund - operating expenses		(7,962	)		—
Pre-tax net restructuring charges - operating expenses		14,201			—
Tax benefit on net restructuring charges and net tax refund		(1,560	)		—
Ongoing net income	$	64,130		$	83,614
Ongoing net income per diluted share	$	0.44		$	0.59
Number of shares used for diluted per share calculation		144,756			142,268
Income tax rate		25	%		24	%

Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Ongoing Gross Margin, Operating Expenses and Operating Income
(in thousands)

	Three Months Ended
	March 27,			December 26,
	2005			2004
U.S. GAAP gross margin	$	174,570		$	198,902
Restructuring recoveries - cost of goods sold		—			—
Ongoing gross margin	$	174,570		$	198,902
U.S. GAAP operating expenses	$	95,945		$	90,332
Net tax refund - operating expenses		7,962			—
Net restructuring charges - operating expenses		(14,201	)		—
Ongoing operating expenses	$	89,706		$	90,332
Ongoing operating income	$	84,864		$	108,570