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

Exhibit 99.1

FOR IMMEDIATE RELEASE

Lam Research Corporation Contact:

Carol Raeburn, Senior Director, Investor Relations, phone: 510/572-4450, e-mail:
carol.raeburn@lamresearch.com

Lam Research Corporation Announces Earnings for the Quarter Ended June 29, 2008

FREMONT, Calif., July 29, 2008 —Lam Research Corporation (NASDAQ: LRCX) highlights for the June 2008 quarter were:

(in thousands, except per share data and percentages)

•     Revenue:		$	566,160
•     Operating Margin:	U.S. GAAP:		11.3	%	Ongoing:		15.3	%
•     Net Income:	U.S. GAAP:	$	72,178		Ongoing:	$	75,837
•     Diluted EPS:	U.S. GAAP:	$	0.57		Ongoing:	$	0.60

Lam Research Corporation today announced earnings for the quarter ended June 29, 2008. Revenue for the period was $566.2 million, gross margin was $234.7 million and net income was $72.2 million, or $0.57 per diluted share, compared to revenue of $613.8 million, gross margin of $287.2 million and net income of $103.5 million, or $0.82 per diluted share for the March 2008 quarter. Shipments for the June 2008 quarter were $495 million compared to $658 million during the March 2008 quarter.

The Company’s ongoing results for the June quarter exclude certain costs for restructuring activities and asset impairments related to an accelerated integration of SEZ, a net tax benefit as the result of the successful resolution of certain foreign tax matters, foreign currency gains on the purchase of SEZ, and costs associated with its voluntary internal stock option review. The Company’s March 2008 quarter excluded certain costs related to the recent acquisition of SEZ, including the foreign currency gains on the purchase and the one-time charge for in-process research and development expense as well as the costs associated with its voluntary internal stock option review. Management uses the presentation of ongoing gross margin, ongoing operating income, ongoing net income, and ongoing diluted earnings per share to evaluate the Company’s operating and financial results. The Company believes the presentation of ongoing results is useful to investors for analyzing ongoing business trends and comparing performance to prior periods, and enhances the investor’s ability to view the Company’s results from management’s perspective. A table presenting a reconciliation of ongoing results to results under U.S. GAAP is included at the end of this press release and on the Company’s web site.

Ongoing net income was $75.8 million, or $0.60 per diluted share in the June 2008 quarter compared to ongoing net income of $109.8 million, or $0.87 per diluted share, for the March 2008 quarter. Ongoing gross margin for the June 2008 quarter was $247.3 million or 43.7% compared to ongoing gross margin of $293.6 million, or 47.8%, for the March 2008 quarter. The sequential decline was primarily due to unfavorable customer and product mix, factory utilization levels, and inclusion of a full quarter of SEZ results. Ongoing operating expenses for the June 2008 quarter increased to $160.7 million compared with the March 2008 quarter of $148.9 million. This increase was due to the inclusion of a full quarter of SEZ.

~more~

Lam Announces Earnings for the June 2008 Quarter Page 2 of 7

The geographic distribution of shipments and revenue during the June 2008 quarter is shown in the following table:

Region	Shipments		Revenue
North America		13%		14	%
Europe		9%		9	%
Japan		26%		20	%
Korea		22%		28	%
Asia Pacific		30%		29	%

Cash and cash equivalents, short-term investments and restricted cash and investments balances increased to $1.2 billion at the end of the June 2008 quarter compared to $1.0 billion at the end of the March 2008 quarter. Cash flows from operating activities were $198.3 million during the June quarter. Deferred revenue and deferred profit balances at the end of the June 2008 quarter were $193.6 million and $128.3 million, respectively. At the end of the June 2008 period, the anticipated future revenue value of orders shipped to Japanese customers that is not recorded as deferred revenue was approximately $52 million.

“During this period of continued reductions in wafer fab equipment investment, Lam Research is leveraging its flexible business model to reduce expenses while utilizing our strong cash generation capability to allow for continued strong investments in R&D activities, both in etch and adjacent new markets, that offer the opportunity for significant long-term revenue and earnings expansion,” said Steve Newberry, Lam’s president and chief executive officer.

“The largest of those new opportunities is in single-wafer clean, where we continue to make significant investments. We have created a new organization for all of our clean products by integrating SEZ together with our C3 linear clean technology and 2300 Coronus plasma bevel clean divisions. We expect the investments in our family of clean products will provide us an excellent opportunity to grow our business in a market that we expect to double in size over the next few years.” Newberry concluded.

~more~

Lam Announces Earnings for the June 2008 Quarter Page 3 of 7

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 the future revenue value of orders shipped to Japanese customers, our expectations for wafer fab equipment investment, the leverage we can obtain from our business model and our ability and plan to reduce expenses, the value of continued investments in R&D activities and our family of clean products, the existence and magnitude of any opportunity for long-term revenue and earnings expansion, and the anticipated size of the market for our family of clean products. Some factors that may affect these forward-looking statements include: changing business conditions in the semiconductor industry and the overall economy and the efficacy of our plans for reacting to those changes, changing customer demands, success of our competitors’ strategies including their development of new technologies, and the technical challenges presented by our new products. 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 report on Form 10-K for the year ended June 24, 2007, and Forms 10-Q for the quarters ended September 23, 2007, December 23, 2007, and March 30, 2008, 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 provider of wafer fabrication equipment and services to the world’s semiconductor industry. Lam’s common stock trades on The NASDAQ Global Select Market ^SM under the symbol LRCX. Lam is a NASDAQ-100^® company. The Company’s World Wide Web address is www.lamresearch.com.

Consolidated Financial Tables Follow

###

Lam Announces Earnings for the June 2008 Quarter Page 4 of 7

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

	Three Months Ended									Twelve Months Ended
	June 29,			March 30,			June 24,			June 29,			June 24,
	2008			2008			2007			2008			2007
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(1)
Total revenue	$	566,160		$	613,810		$	678,519		$	2,474,911		$	2,566,576
Cost of goods sold		318,900			320,201			335,790			1,282,494			1,261,522
Cost of goods sold — restructuring and asset impairments		12,610			—			—			12,610			—
Cost of goods sold - 409A expense		—			6,401			—			6,401			—
Total costs of goods sold		331,510			326,602			335,790			1,301,505			1,261,522
Gross margin		234,650			287,208			342,729			1,173,406			1,305,054
Gross margin as a percent of revenue		41.4	%		46.8	%		50.5	%		47.4	%		50.8	%
Research and development		86,652			80,576			79,601			323,759			285,348
Selling, general and administrative		77,704			74,491			62,779			287,992			241,046
409A expense		—			43,784			—			43,784			—
Restructuring and asset impairments		6,366			—			—			6,366			—
In-process research and development		—			2,074			—			2,074			—
Total operating expenses		170,722			200,925			142,380			663,975			526,394
Operating income		63,928			86,283			200,349			509,431			778,660
Operating margin as a percent of revenue		11.3	%		14.1	%		29.5	%		20.6	%		30.3	%
Other income, net		10,344			49,605			10,872			67,545			69,063
Income before income taxes		74,272			135,888			211,221			576,976			847,723
Income tax expense		2,094			32,364			40,990			137,627			161,907
Net income	$	72,178		$	103,524		$	170,231		$	439,349		$	685,816
Net income per share:
Basic net income per share	$	0.58		$	0.83		$	1.31		$	3.52		$	4.94
Diluted net income per share	$	0.57		$	0.82		$	1.28		$	3.47		$	4.85
Number of shares used in per share calculations:
Basic		125,046			124,768			130,169			124,647			138,714
Diluted		126,657			126,549			132,868			126,504			141,524

(1) Derived from audited financial statements

Lam Announces Earnings for the June 2008 Quarter Page 5 of 7

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	June 29,		March 30,		June 24,
	2008		2008		2007
	(unaudited)		(unaudited)		(1)
ASSETS
Cash and cash equivalents	$	781,181	$	552,353	$	573,967
Short-term investments		277,555		290,542		96,724
Accounts receivable, net		412,356		599,719		410,013
Inventories		282,218		305,802		235,431
Deferred income taxes		96,748		76,725		61,727
Other current assets		67,649		65,542		38,499
Total current assets		1,917,707		1,890,683		1,416,361
Property and equipment, net		235,735		231,748		113,725
Restricted cash and investments		146,072		169,841		360,038
Deferred income taxes		19,793		35,164		27,414
Goodwill and intangible assets		403,187		391,909		130,650
Other assets		84,261		74,919		53,417
Total assets	$	2,806,755	$	2,794,264	$	2,101,605
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	637,679	$	725,042	$	672,798
Long-term debt and capital leases	$	276,503	$	287,330	$	250,000
Income taxes payable		85,611		85,501		—
Other long-term liabilities		23,018		23,060		2,487
Minority interests		5,347		9,274		—
Stockholders’ equity		1,778,597		1,664,057		1,176,320
Total liabilities and stockholders’ equity	$	2,806,755	$	2,794,264	$	2,101,605

1 Derived from audited financial statements

Lam Announces Earnings for the June 2008 Quarter Page 6 of 7

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three Months Ended									Twelve Months Ended
	June 29,			March 30,			June 24,			June 29,			June 24,
	2008			2008			2007			2008			2007
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(1)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	72,178		$	103,524		$	170,231		$	439,349		$	685,816
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		19,227			12,914			10,920			54,704			38,097
Deferred income taxes		(4,652	)		(11,995	)		8,334			(26,661	)		17,055
Equity-based compensation expense		11,629			10,272			11,766			42,516			35,554
Income tax benefit on equity-based compensation plans		26,815			(520	)		12,621			83,472			62,437
Excess tax benefit on equity-based compensation plans		(21,666	)		401			(10,449	)		(58,904	)		(44,990	)
Net gain on settlement of call option		399			(33,694	)		—			(33,295	)		—
Restructuring and asset impairments		18,976			—			—			18,976			—
Other, net		(996	)		(14,183	)		597			(3,863	)		625
Changes in operating asset accounts		76,377			79,266			89,473			71,865			28,965
Net cash provided by operating activities		198,287			145,985			293,493			588,159			823,559
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets		(18,951	)		(19,291	)		(14,305	)		(76,803	)		(59,968	)
Acquisitions of businesses, net of cash acquired		(4,758	)		(475,656	)		(4,000	)		(480,414	)		(181,108	)
Sales of other investments		—			—			3,000			—			3,000
Net sales (purchases) of available-for-sale securities		16,150			83,201			540,076			67,466			45,230
Purchase of call option		—			(3,227	)		—			(13,506	)		—
Proceeds from settlement of call option		383			46,962			—			47,345			—
Purchase of other investments		—			—			—			(4,560	)		—
Transfer of restricted cash and investments		17,233			(688	)		—			15,471			110,000
Other		—			2,248			—			—			—
Net cash provided by (used for) investing activities		10,057			(366,451	)		524,771			(445,001	)		(82,846	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt and capital lease obligations		(1,500	)		(250,114	)		(51	)		(251,714	)		(100,171	)
Net proceeds from issuance of long-term debt		1,915			250,000			—			251,915			—
Excess tax benefit on equity-based compensation plans		21,666			(401	)		10,449			58,904			44,990
Treasury stock purchases		(3,590	)		(737	)		(768,400	)		(14,552	)		(1,083,745	)
Reissuances of treasury stock		1,262			—			6,835			8,563			18,123
Proceeds from issuance of common stock		2,588			—			12,175			12,694			42,468
Net cash provided by (used for) financing activities		22,341			(1,252	)		(738,992	)		65,810			(1,078,335	)
Effect of exchange rate changes on cash		(1,857	)		(1,984	)		(112	)		(1,754	)		774
Net increase (decrease) in cash and cash equivalents		228,828			(223,702	)		79,160			207,214			(336,848	)
Cash and cash equivalents at beginning of period		552,353			776,055			494,807			573,967			910,815
Cash and cash equivalents at end of period	$	781,181		$	552,353		$	573,967		$	781,181		$	573,967

(1) Derived from audited financial statements

Lam Announces Earnings for the June 2008 Quarter Page 7 of 7

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

	Three Months Ended			Three Months Ended
	June 29,			March 30,
	2008			2008
U.S. GAAP net income	$	72,178		$	103,524
Pre-tax non-ongoing items:
Restructuring and asset impairments — cost of goods sold		12,610			—
Restructuring and asset impairments — operating expenses		6,366			—
409A expense — cost of goods sold		—			6,401
409A expense — operating expenses		—			43,784
Voluntary internal stock option review — operating expenses		3,669			6,190
Foreign exchange gain on SEZ acquisition — other income (expense), net		(570	)		(49,285	)
Net tax benefit on ongoing items		(6,141	)		(2,861	)
In-process r&d for SEZ acquisition — operating expenses		—			2,074
Net tax benefit on successful resolution of certain foreign tax matters		(12,275	)		—
Ongoing net income	$	75,837		$	109,827
Ongoing net income per diluted share	$	0.60		$	0.87
Number of shares used for diluted per share calculation		126,657			126,549
U.S. GAAP income tax rate		2.8	%		23.8	%
Ongoing income tax rate		21.3	%		24.3	%

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

	Three Months Ended			Three Months Ended
	June 29,			March 30,
	2008			2008
U.S. GAAP gross margin	$	234,650		$	287,208
Pre-tax non-ongoing items:
Restructuring and asset impairments — cost of goods sold		12,610		$	—
409A expense — cost of goods sold		—			6,401
Ongoing gross margin	$	247,260		$	293,609
U.S. GAAP gross margin as a percent of revenue		41.4	%		46.8	%
Ongoing gross margin as a percent of revenue		43.7	%		47.8	%
U.S. GAAP operating expenses	$	170,722		$	200,925
Pre-tax non-ongoing items:
Restructuring and asset impairments — operating expenses		(6,366	)		—
409A expense — operating expenses		—			(43,784	)
Voluntary internal stock option review — operating expenses		(3,669	)		(6,190	)
In-process r&d for SEZ acquisition — operating expenses		—			(2,074	)
Ongoing operating expenses	$	160,687		$	148,877
Ongoing operating income	$	86,573		$	144,732
Ongoing operating income as a percent of revenue		15.3	%		23.6	%