Friday, 20 March 2009 11:35 AM
Shares of Lam Research (LRCX) are flat in early trading after the semiconductor equipment maker announced it expects to incur certain cash charges in connection with a workforce reduction of approximately 375 regular, temporary and contract employee positions, or approximately 10% of the Company's total workforce.
The Restructuring Plan is expected to be completed by the June 2009 quarter. The Restructuring Plan is targeted at reducing the Company's cost structure by approximately $85 million to $95 million on an annualized basis.
The Bottom Line
The company’s shares have been cut in half since hitting a high of $44 back in April of last year. The stock has technical support in the $14-16 price area. If the shares can firm up, we see overhead resistance around the $30 mark. We do not currently rate this non-dividend paying stock but do follow the company closely.
Lam Research (LRCX) does not currently pay a dividend.
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