The ratings on Lam Research Corp. reflect its good, but not leading, position in the volatile semiconductor capital goods industry, as well as its good liquidity. The revised outlook recognizes Lam's declining order backlog as market conditions continue to deteriorate, indicating that revenues are likely to weaken over the next few quarters. 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, chip makers have cut their expansion plans. Lam's orders declined 25% sequentially
