8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 17, 2007

LAM RESEARCH CORPORATION

(Exact name of registrant as specified in its charter)

Delaware
(State or Other Jurisdiction of Incorporation)

0-12933	94-2634797
(Commission File Number)	(IRS Employer Identification Number)

4650 Cushing Parkway
Fremont, California 94538
(Address of principal executive offices including zip code)

(510) 572-0200
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

 EXHIBIT 99.1

Item 2.02. Results of Operations and Financial Condition

On January 17, 2007, Lam Research Corporation (the Company) issued a press release announcing its earnings for the fiscal quarter ended December 24, 2006, the text of which is attached hereto as Exhibit 99.1.

The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, the information in the Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

       99.1  Press Release dated January 17, 2007 announcing earnings for the fiscal quarter ended December 24, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 17, 2007

LAM RESEARCH CORPORATION
By:	/s/ Martin B. Anstice
	Martin B. Anstice
	Group Vice President,
	Chief Financial Officer, and
	Chief Accounting Officer

EXHIBIT INDEX

99.1 Press Release dated January 17, 2007 announcing earnings for the fiscal quarter ended December 24, 2006

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

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

Lam Research Corporation Announces Earnings for the Quarter Ended
December 24, 2006

FREMONT, Calif., January 17, 2007 —Lam Research Corporation (NASDAQ: LRCX) highlights for the December 2006 quarter were:

· Revenue:	$633.4 million
· Operating Margin:	30.7%
· Net Income:	$167.3 million
· Diluted EPS:	$1.15

Lam Research Corporation today announced earnings for the quarter ended December 24, 2006. Revenue for the period was $633.4 million and net income was $167.3 million, or $1.15 per diluted share, compared to revenue of $604.4 million and net income of $183.5 million, or $1.27 per diluted share for the September 2006 quarter. Ongoing net income was $167.3 million, or $1.15 per diluted share in the December 2006 quarter compared with ongoing net income of $163.9 million, or $1.13 per diluted share, for the September 2006 quarter, reflecting the Company’s investment in support of its long-term market share and product growth objectives.

Gross margin for the December 2006 quarter was $322.9 million, or 51.0 percent, compared to gross margin of $313.2 million, or 51.8 percent, for the September 2006 quarter. Operating expenses increased during the quarter to $128.4 million compared to operating expenses of $118.3 million for the September 2006 quarter, driven by investments supporting the Company’s etch market share growth and new product development for markets adjacent to etch.

~more~

Lam Announces Earnings for the December 2006 Quarter Page 2 of  8

The Company’s ongoing results exclude certain items noted below. Management uses the presentation of ongoing results 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, comparing performance to prior periods, and enhancing the investor’s ability to view the Company’s results from management’s perspective. A table presenting a reconciliation of ongoing performance to results under U.S. Generally Accepted Accounting Principles (GAAP) is included at the end of this press release and on the Company’s web site. In the December 2006 quarter, there were no significant differences between the ongoing results and the results under GAAP. The September 2006 quarter ongoing presentation removes the effects of a legal judgment in favor of the Company of $15.8 million recorded in other income, net, which was previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 25, 2006, and the successful resolution of certain foreign tax matters resulting in a net tax benefit of $10.0 million.

New orders recorded in backlog increased 7 percent sequentially to $779 million. The geographic distribution of new orders and revenue during the December 2006 quarter is shown in the following table:

Region	New Orders			Revenue
North America		16	%		17	%
Europe		10	%		10	%
Japan		11	%		16	%
Korea		21	%		20	%
Asia Pacific		42	%		37	%

~more~

Lam Announces Earnings for the December 2006 Quarter Page 3 of  8

Cash and cash equivalents, short-term investments and restricted cash and investments balances were $1.6 billion at the end of December, and cash flows provided by operating activities were $162.0 million during the quarter. Condensed Consolidated Statements of Cash Flows are included at the end of this press release. Deferred revenue and deferred profit balances were $284.4 million and $176.8 million, respectively. At the end of the period, unshipped orders in backlog were approximately $719 million, and the anticipated future revenue value of orders shipped from backlog to Japanese customers that are not recorded as deferred revenue was approximately $64 million.

“Lam Research demonstrated strong financial and operating performance in the December quarter across key metrics,” stated Steve Newberry, Lam Research’s president and chief executive officer. “The results concluded what was an outstanding calendar 2006 in which the company generated record cash from operations, three consecutive quarters of 30 percent-plus operating margins, and 121 percent growth in operating income over calendar 2005. We saw significant market share gains in our etch markets and strong growth in our spares and services businesses reflecting the trust and confidence our customers have in Lam Research.”

“In 2007 we will seek to continue achieving the benefits of our business model and expand upon the momentum in our core etch businesses. We are making excellent progress in our activities associated with our expansion into markets adjacent to etch and are confident that our new products will deliver the type of best-in-class, yield enhancing results that our customers have come to expect from Lam Research,” Newberry concluded.

~more~

Lam Announces Earnings for the December 2006 Quarter Page 4 of  8

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 from backlog to Japanese customers, the future relationships between Lam Research and its customers, the benefits of our business model, the momentum of our core etch business, our expansion into markets adjacent to etch and the results delivered by our new products. Some factors that may affect these forward-looking statements include: changing business conditions in the semiconductor industry and the overall economy and 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 current product offerings as well as 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 25, 2006, and Form 10-Q for the quarter ended September 24, 2006, 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 http://www.lamresearch.com.

Consolidated Financial Tables Follow
###

Lam Announces Earnings for the December 2006 Quarter Page 5 of  8

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

	Three Months Ended									Six Months Ended
	December 24,			September 24,			December 25,			December 24,			December 25,
	2006			2006			2005			2006			2005
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Total revenue	$	633,400		$	604,387		$	358,245		$	1,237,787		$	679,152
Cost of goods sold		310,484			291,223			180,735			601,707			345,563
Gross margin		322,916			313,164			177,510			636,080			333,589
Gross margin as a percent of revenue		51.0	%		51.8	%		49.5	%		51.4	%		49.1	%
Research and development		69,060			61,623			55,742			130,683			106,984
Selling, general and administrative		59,351			56,708			44,859			116,059			90,014
Total operating expenses		128,411			118,331			100,601			246,742			196,998
Operating income		194,505			194,833			76,909			389,338			136,591
Operating margin as a percent of revenue		30.7	%		32.2	%		21.5	%		31.5	%		20.1	%
Other income, net		13,092			30,348			9,308			43,440			17,796
Income before income taxes		207,597			225,181			86,217			432,778			154,387
Income tax expense		40,271			41,663			8,439			81,934			27,118
Net income	$	167,326		$	183,518		$	77,778		$	350,844		$	127,269
Net income per share:
Basic	$	1.18		$	1.29		$	0.57		$	2.47		$	0.93
Diluted	$	1.15		$	1.27		$	0.55		$	2.42		$	0.89
Number of shares used in per share calculations:
Basic		142,306			141,928			136,572			142,120			136,499
Diluted		145,346			144,850			142,525			145,102			142,209

Lam Announces Earnings for the December 2006 Quarter Page 6 of  8

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	December 24,		September 24,		June 25,
	2006		2006		2006
	(unaudited)		(unaudited)		(1)
Assets:
Cash and cash equivalents	$	629,117	$	1,031,348	$	910,815
Short-term investments		574,845		233,284		139,524
Accounts receivable, net		456,427		379,869		407,347
Inventories		212,299		188,179		168,714
Other current assets		83,968		87,920		79,969
Total current assets		1,956,656		1,920,600		1,706,369
Property and equipment, net		97,034		56,786		49,893
Restricted cash and investments		415,038		470,038		470,038
Goodwill		55,892		—		—
Intangible assets, net		64,641		—		—
Other assets		90,445		86,937		87,044
Total assets	$	2,679,706	$	2,534,361	$	2,313,344
Liabilities and stockholders’ equity:
Current liabilities	$	638,363	$	584,244	$	566,226
Long-term debt	$	300,000	$	350,000	$	350,000
Other long-term liabilities		833		924		969
Stockholders’ equity		1,740,510		1,599,193		1,396,149
Total liabilities and stockholders’ equity	$	2,679,706	$	2,534,361	$	2,313,344

(1) Derived from audited financial statements.

Lam Announces Earnings for the December 2006 Quarter Page 7 of  8

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

	Three Months Ended									Six Months Ended
	December 24,			September 24,			December 25,			December 24,			December 25,
	2006			2006			2005			2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	167,326		$	183,518		$	77,778		$	350,844		$	127,269
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,760			6,527			4,995			15,287			11,027
Deferred income taxes		7,424			6,419			(647	)		13,843			14,727
Equity-based compensation		6,664			6,251			6,044			12,915			11,290
Income tax benefit on equity-based compensation plans		20,367			1,872			—			22,239			—
Excess tax benefit on equity-based compensation plans		(14,086	)		(1,264	)		—			(15,350	)		—
Other, net		(1,551	)		420			109			(1,131	)		1,951
Change in working capital accounts		(32,866	)		12,884			23,126			(19,982	)		(7,478	)
Net cash provided by operating activities		162,038			216,627			111,405			378,665			158,786
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets		(13,966	)		(12,920	)		(5,036	)		(26,886	)		(9,694	)
Acquisition of Bullen Ultrasonics, Inc. assets		(177,108	)		—			—			(177,108	)		—
Transfer of restricted cash and investments		55,000			—			—			55,000			—
Net sales (purchases) of available-for-sale securities		(340,774	)		(90,923	)		14,191			(431,697	)		65,789
Net cash provided by/(used for) investing activities		(476,848	)		(103,843	)		9,155			(580,691	)		56,095
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt and capital lease		(50,028	)		(44	)		—			(50,072	)		—
Excess tax benefit on equity-based compensation plans		14,086			1,264			—			15,350			—
Treasury stock purchases		(75,285	)		(1,048	)		(61,917	)		(76,333	)		(140,607	)
Reissuances of treasury stock		—			5,990			—			5,990			5,137
Proceeds from issuance of common stock		22,662			1,739			61,926			24,401			74,100
Net cash provided by/(used for) financing activities		(88,565	)		7,901			9			(80,664	)		(61,370	)
Effect of exchange rate changes on cash		1,144			(152	)		(1,605	)		992			(1,979	)
Net increase in cash and cash equivalents		(402,231	)		120,533			118,964			(281,698	)		151,532
Cash and cash equivalents at beginning of period		1,031,348			910,815			514,818			910,815			482,250
Cash and cash equivalents at end of period	$	629,117		$	1,031,348		$	633,782		$	629,117		$	633,782

Lam Announces Earnings for the December 2006 Quarter Page 8 of  8

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

	Three Months Ended
	December 24,			September 24,
	2006			2006
U.S. GAAP net income	$	167,326		$	183,518
Net tax benefit on successful resolution of certain foreign tax matters		—			(9,959	)
Pre-tax legal judgment — other income, net		—			(15,834	)
Tax expense on legal judgment		—			6,128
Ongoing net income	$	167,326		$	163,853
Ongoing net income per diluted share	$	1.15		$	1.13
Number of shares used for diluted per share calculation		145,346			144,850
U.S. GAAP income tax rate		19.4	%		18.5	%
Ongoing income tax rate		19.4	%		21.7	%