The ratings on Lam Research Corp. reflect the company's second-tier position in the highly stressed semiconductor capital goods industry and its 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. Still, market conditions are volatile, and profitability levels can be highly variable. Sales can vary by more than 100% year-to-year, and EBITDA margins have varied from slightly negative to more than 20%. Revenues in the September 2002 quarter increased 8% sequentially, to $198 million, but are expected to decline again in
