The ratings on Lam Research Corp. reflect the company's second-tier position in the highly stressed semiconductor capital goods industry, and good liquidity. Fremont, Calif.-based Lam Research manufactures equipment to deposit, etch, and polish microscopically thin layers on the surface of silicon wafers, as part of the semiconductor manufacturing process. The company has materially refreshed its product line and somewhat improved its market position in the past few years. However, in light of deteriorating semiconductor markets and economic recession, chipmakers have cut their expansion plans. Lam's orders declined 25% sequentially in the September 2001 quarter from the June quarter. Revenues, which were $340 million in the September period, are likely to decline over the next few quarters. Lam is adjusting its
