The ratings on Fremont, Calif.-based Lam Research Corp. reflect the company's second-tier position in the cyclical semiconductor capital goods industry and its good liquidity. 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 for the four quarters ended Dec. 28, 2003, were 3% higher than in the like period in 2002. EBITDA
