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

Exhibit 99.1

FOR IMMEDIATE RELEASE

Lam Research Corporation Contact:

Shanye Hudson, Director, Investor Relations, phone: 510/572-4589, e-mail:shanye.hudson@lamresearch.com

Lam Research Corporation Announces Financial Results for the Quarter Ended March 27, 2011

FREMONT, Calif., April 20, 2011—Lam Research Corporation’s (NASDAQ: LRCX) highlights for the March 2011 quarter were:

Lam Research Corporation

Financial Highlights for the Quarter Ended March 27, 2011

(in thousands, except per share data and percentages)

	U.S. GAAP/Ongoing
Revenue:	$	809,087
Operating Margin:		24.3	%
Net Income:	$	182,240
Diluted EPS:	$	1.45

Lam Research Corporation today announced financial results for the quarter ended March 27, 2011. Revenue for the period was $809.1 million, gross margin was $374.0 million (46.2%), and net income was $182.2 million, or $1.45 per diluted share, compared to revenue of $870.7 million, gross margin of $407.4 million (46.8%), and net income of $221.9 million, or $1.78 per diluted share, for the December 2010 quarter. Shipments for the March 2011 quarter were $813 million compared to $892 million during the December 2010 quarter.

The Company’s ongoing results for the December 2010 quarter exclude certain benefits for research and development tax credits. There were no adjustments to U.S. GAAP results to determine “ongoing” results for the March 2011 quarter. Management uses ongoing operating income, ongoing operating expenses, ongoing operating margin, ongoing net income, and ongoing net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of ongoing results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing the investor’s ability to view the Company’s results from management’s perspective. A table presenting a reconciliation of ongoing net income to results under U.S. GAAP is included at the end of this press release and on the Company’s web site at http://investor.lamrc.com.

Ongoing net income was $182.2 million, or $1.45 per diluted share in the March 2011 quarter compared to ongoing net income of $217.1 million, or $1.74 per diluted share, for the December 2010 quarter. Ongoing gross margin for the March 2011 quarter was $374.0 million or 46.2%, compared to ongoing gross margin of $407.4 million, or 46.8%, for the December 2010 quarter. The sequential decrease in gross margin was primarily due to customer mix. Ongoing operating expenses for the March 2011 quarter were $177.0 million compared with the December 2010 quarter of $166.3 million. This change is consistent with our plans to increase investments in core product research and development as well as customer-specific programs.

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Lam Announces Financial Results for the March 2011 Quarter

The geographic distribution of shipments and revenue during the March 2011 quarter is shown in the following table:

Region	Shipments			Revenue
North America		23	%		23	%
Europe		16	%		18	%
Japan		11	%		13	%
Korea		19	%		18	%
Taiwan		18	%		14	%
Asia Pacific		13	%		14	%

Cash and cash equivalents, short-term investments and restricted cash and investments balances were $1.4 billion at the end of the March 2011 quarter, compared to $1.2 billion at the end of the December 2010 quarter. Cash flows from operating activities were approximately $241.6 million during the March 2011 quarter. Deferred revenue and deferred profit balances at the end of the March 2011 quarter were $246.6 million and $150.3 million, respectively. Lam’s deferred revenue balance does not include shipments to Japanese customers, to whom title does not transfer until customer acceptance. Shipments to Japanese customers are classified as inventory at cost until the time of acceptance. The anticipated future revenue from shipments to Japanese customers was approximately $36.2 million as of March 27, 2011.

“Lam delivered strong performance in the March quarter providing a solid foundation for the remainder of 2011. I am particularly pleased with our solid cash generation performance, which represented a return of approximately 30% of revenues. Strong demand for smartphones, tablets and other electronic devices is expected to drive a healthy level of investment on the part of our customers over the course of CY’11,” said Steve Newberry, chief executive officer and vice chairman of the board.

“These investment levels create opportunities for Lam, and we remain committed to making the strategic investments necessary to strengthen and grow our market position in both etch and clean. We have increased our level of customer engagement through joint partnerships and programs designed to improve our customers’ manufacturing productivity and address their most complex technical challenges. These customer-centric programs coupled with investments in core product R&D enable Lam Research to be well-positioned for growth in the coming years.”

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Lam Announces Financial Results for the March 2011 Quarter

Caution Regarding Forward-Looking Statements

Statements made in this press release that are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to the anticipated revenue from shipments to Japanese customers; the demand for smartphones, tablets and other electronic devices, our customers’ investments and intentions for meeting that demand, our commitment to strategic investments to strengthen and grow our market position as well as the effect of any such investments, our anticipated continued investments in customer engagements such as joint partnerships to address technical challenges and improve productivity solutions as well as our core R&D programs, and our ability to meet customers’ future technology needs and our future market position. Some factors that may affect these forward-looking statements include: business conditions in the consumer electronics industry, the semiconductor industry and the overall economy; the strength of the financial performance of our existing and prospective customers; the introduction of new and innovative technologies; the occurrence and pace of technology transitions and conversions; the actions of our competitors, consumers, semiconductor companies and key suppliers and subcontractors; and the success of research and development and sales and marketing programs. 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 by us with the Securities and Exchange Commission, including specifically our report on Form 10-K for the year ended June 27, 2010 and the reports on Form 10-Q for the three months ended September 26, 2010 and December 26, 2010. These uncertainties and changes 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. For more information, visit www.lamresearch.com.

Consolidated Financial Tables Follow

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Lam Announces Financial Results for the March 2011 Quarter

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, 2011			December 26, 2010			March 28, 2010			March 27, 2011			March 28, 2010
Revenue	$	809,087		$	870,714		$	632,763		$	2,485,675		$	1,438,487
Cost of goods sold		435,068			463,281			339,892			1,326,897			795,810
Cost of goods sold - 409A expense		—			—			—			—			(5,816	)
Total costs of goods sold		435,068			463,281			339,892			1,326,897			789,994
Gross margin		374,019			407,433			292,871			1,158,778			648,493
Gross margin as a percent of revenue		46.2	%		46.8	%		46.3	%		46.6	%		45.1	%
Research and development		96,880			90,477			81,845			273,710			235,215
Selling, general and administrative		80,143			75,852			61,933			228,137			174,163
Restructuring and asset impairments		—			—			—			(5,163	)		8,012
409A expense		—			—			—			—			(38,590	)
Total operating expenses		177,023			166,329			143,778			496,684			378,800
Operating income		196,996			241,104			149,093			662,094			269,693
Operating margin as a percent of revenue		24.3	%		27.7	%		23.6	%		26.6	%		18.7	%
Other income, net		1,663			1,038			1,616			1,722			1,190
Income before income taxes		198,659			242,142			150,709			663,816			270,883
Income tax expense		16,419			20,286			30,408			65,996			64,211
Net income	$	182,240		$	221,856		$	120,301		$	597,820		$	206,672
Net income per share:
Basic net income per share	$	1.47		$	1.80		$	0.94		$	4.84		$	1.63
Diluted net income per share	$	1.45		$	1.78		$	0.94		$	4.78		$	1.61
Number of shares used in per share calculations:
Basic		123,674			123,101			127,307			123,482			127,127
Diluted		125,293			124,786			128,587			125,097			128,368

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Lam Announces Financial Results for the March 2011 Quarter

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 27, 2011		December 26, 2010		June 27, 2010
	(unaudited)		(unaudited)		(1)
ASSETS
Cash and cash equivalents	$	942,710	$	729,060	$	545,767
Short-term investments		312,879		303,038		280,690
Accounts receivable, net		637,795		689,400		499,890
Inventories		355,734		333,874		318,479
Deferred income taxes		45,934		47,380		46,158
Other current assets		77,722		76,993		65,677
Total current assets		2,372,774		2,179,745		1,756,661
Property and equipment, net		251,954		229,769		200,336
Restricted cash and investments		165,248		165,244		165,234
Deferred income taxes		29,578		28,030		26,218
Goodwill and intangible assets		221,146		225,671		236,906
Other assets		107,795		104,758		102,037
Total assets	$	3,148,495	$	2,933,217	$	2,487,392
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	667,391	$	689,871	$	558,657
Long-term debt and capital leases	$	15,949	$	16,524	$	17,645
Income taxes payable		116,911		118,323		110,462
Other long-term liabilities		25,088		23,720		32,493
Stockholders’ equity		2,323,156		2,084,779		1,768,135
Total liabilities and stockholders’ equity	$	3,148,495	$	2,933,217	$	2,487,392

1 Derived from audited financial statements

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Lam Announces Financial Results for the March 2011 Quarter

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended									Nine Months Ended
	March 27, 2011			December 26, 2010			March 28, 2010			March 27, 2011			March 28, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	182,240		$	221,856		$	120,301		$	597,820		$	206,672
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization		18,176			18,663			17,872			54,787			53,737
Deferred income taxes		(733	)		(3,039	)		640			(4,555	)		22,351
Restructuring charges, net		—			—			—			(5,163	)		8,012
Equity-based compensation expense		12,456			12,759			10,917			38,224			38,134
Income tax benefit on equity-based compensation plans		15,327			(918	)		477			19,492			691
Excess tax benefit on equity-based compensation plans		(11,878	)		711			(370	)		(15,106	)		(973	)
Other, net		746			(1,600	)		1,210			(2,818	)		2,542
Changes in operating assets and liabilities:		25,259			(62,849	)		(41,781	)		239			(145,886	)
Net cash provided by operating activities		241,593			185,583			109,266			682,920			185,280
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets		(35,769	)		(38,025	)		(10,823	)		(92,924	)		(23,548	)
Net sales/maturities (purchases) of available-for-sale securities		(11,068	)		(1,160	)		(3,238	)		(36,734	)		(14,029	)
Purchase of other investments		(417	)		—			—			(417	)		(961	)
Proceeds from sale of assets		—			1,544			—			1,544			—
Transfer of restricted cash and investments		(4	)		—			19,629			(14	)		13,155
Net cash provided by (used for) investing activities		(47,258	)		(37,641	)		5,568			(128,545	)		(25,383	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt and capital lease obligations		(1,038	)		(78	)		(17,820	)		(4,449	)		(20,424	)
Net proceeds from issuance of long-term debt		—			—			—			—			336
Excess tax benefit on equity-based compensation plans		11,878			(711	)		370			15,106			973
Cash paid in advance for stock repurchase contracts		—			(50,000	)		—			(50,000	)		—
Treasury stock purchases		(8,617	)		(4,151	)		(72,240	)		(157,563	)		(75,172	)
Reissuances of treasury stock		6,521			—			5,518			13,676			11,279
Proceeds from issuance of common stock		5,980			3,407			1,441			10,222			7,823
Net cash provided by (used for) financing activities		14,724			(51,533	)		(82,731	)		(173,008	)		(75,185	)
Effect of exchange rate changes on cash		4,591			4,370			(900	)		15,576			2,490
Net increase in cash and cash equivalents		213,650			100,779			31,203			396,943			87,202
Cash and cash equivalents at beginning of period		729,060			628,281			430,166			545,767			374,167
Cash and cash equivalents at end of period	$	942,710		$	729,060		$	461,369		$	942,710		$	461,369

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Lam Announces Financial Results for the March 2011 Quarter

Reconciliation of U.S. GAAP Net Income to Ongoing Net Income

(in thousands, except per share data)

(unaudited)

	Three Months Ended		Three Months Ended
	March 27, 2011		December 26, 2010
U.S. GAAP net income	$	182,240	$	221,856
Net tax benefit of R&D credit		—		(4,763	)
Ongoing net income	$	182,240	$	217,093
Ongoing net income per diluted share	$	1.45	$	1.74
Number of shares used for diluted per share calculation		125,293		124,786

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