Lam Research Quarterly Profit Rises

Lam Research on Thursday posted a higher quarterly profit as the supplier of equipment for making microchips saw sales jump by nearly 50% over a year earlier.

Lam said net profit for its third fiscal quarter was $164.7 million, or $1.15 a share, compared with $86.3 million, or 60 cents a share, a year earlier. Revenue climbed 49% to $650.3 million.

Lam was expected to have earned $154.1 million, or $1.07 a share on revenue of $644.7 million, according to the average analyst forecasts on Reuters Estimates.

Lam mainly supplies tools for etching circuitry on wafers of silicon. The chip equipment sector has boomed in recent quarters amid rapid expansion by makers of memory chips.

Last quarter, shares in Lam and other chip equipment suppliers were hit after the company gave a third-quarter forecast that was lower than what Wall Street had expected, prompting fears of a downturn in the sector.

The stock has risen 14% over the past year, compared to a gain of about 1% for Applied Materials, the biggest chip equipment maker.

Shares in Lam rose 1% to $50.98 in extended trading after the results were announced.

The stock rose 1.5% in regular Nasdaq trading to close at $50.98, driven higher by bullish remarks from Citigroup and Stifel Nicolaus.