* Q1 adj EPS 3 cents vs loss/shr est 8 cents
* Q1 revenue down 28 percent
* Q2 sales forecast beats estimates
* Shares up 4 pct in extended trade
BANGALORE, Oct 21 Chip gear maker Lam Research
Corp (LRCX.O) posted a surprise profit as it cut costs and
benefited from strong shipments, and forecast second-quarter
revenue above analysts' expectations, sending its shares up 4
Lam Research, which supplies tools for etching circuits
onto microchips, forecast second-quarter revenue of $450
million, plus or minus $10 million, compared with analysts'
estimate of $342.1 million.
Moving into the December quarter, the company also sees
shipments of about $480 million compared with $355 million in
the September quarter.
Lam Research, which competes with Applied Materials Inc
(AMAT.O), Novellus Systems Inc (NVLS.O) and KLA Tencor Corp
(KLAC.O), noted that the business environment had clearly
improved during September quarter.
The company, whose customers include South Korea's Samsung
Electronics (005930.KS), IBM (IBM.N) and STMicroelectronics
(STM.PA), posted first-quarter net income of $16.8 million, or
13 cents per share. Excluding items, it earned 3 cents a share.
Revenue fell 28 percent to $318.5 million.
Analysts on average expected a loss of 8 cents a share,
excluding exceptional items, on revenue of $294.6 million,
according to Thomson Reuters I/B/E/S.
"Lam Research had strong shipments and revenue performance
in the September quarter, allowing the company to return to
profitability and generate positive cash flow once again,"
Chief Executive Steve Newberry said in a statement.
Shares of the company rose $1.15 to $37 in trading after
the bell. The stock, which has risen about 43 percent in last
six months, closed at $35.85 Wednesday on Nasdaq.
(Reporting by Shrutika Verma in Bangalore; Editing by Pradeep
Kurup and Saumyadeb Chakrabarty)