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Semiconductor equipment maker Lam Research reported selected financial results for its fiscal first quarter on Wednesday, omitting details of its bottom line due to an ongoing internal review of its stock option granting practices. Sales for the quarter rose 13% to $684.6 million, topping analyst expectations of $675.8M. Operating income grew 2% to $197.9M. However, gross margin declined to 50.2% from 51.8% last year, while shipments were down 11% sequentially to $621M. During Lam's earnings conference call, CEO Steve Newberry said current quarter revenue is expected to be in the range of $580M to $600M, which is consistent with prior calendar year 2007 guidance for 15% to 20% growth, but short of the $613.5M analysts' had forecasted (full transcript). Ahead of Lam's earnings release, Stifel Nicolaus analyst Patrick Ho commented, "We continue to hold a very favorable fundamental stance on the company, barring any extraneous implications from the investigation, in terms of its market share position and its business model." Shares of Lam Research gained 2.3% to $55.01 during the regular session Wednesday and added another 0.6% to $55.35 in extended trading.

Sources: Press release, MarketWatch, TheStreet.com
Commentary: LAM Research Mixed ResultsValue In Growth At Semis Lam Research, Verigy Inc.Semi Equipment Downturn Still Misunderstood
Stocks/ETFs to watch: LRCX. Competitors: AMAT, NVLS

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Source: Lam Research Higher on FQ1 Sales Beat