Lam Research Corp. (BB-/Negative/--) announced its second round of layoffs in less than four months. The two actions totaled about 22% of total positions since August. Standard&Poor's said the action will have no effect on the company's ratings or outlook. Earlier in the year, the company reduced executive salaries and deferred merit pay increases. Lam and other capital goods suppliers will face weak conditions in coming quarters due to substantial excess capacity in the semiconductor industry. Revenues, which were $340 million in the September period, are likely to decline because of a dwindling book of new orders. The company's liquidity is expected to more than meet near-term operational needs, although this cannot indefinitely offset dwindling profitability.
