Summary
Lam Research Corporation (LRCX) filed an amendment to its Form 8-K on December 18, 2008, to provide updated and additional details regarding its previously announced restructuring plan. This amendment primarily focuses on disclosing the estimated financial charges associated with the restructuring, which includes a reduction in force and asset impairments. Investors should note that the company anticipates incurring total charges of approximately $20 million to $26 million, expected to be substantially recognized in the quarter ending December 28, 2008. The breakdown of these charges includes an estimated $15 million to $20 million in cash expenses for one-time termination benefits related to employee reductions, and approximately $5 million to $6 million in non-cash charges for asset impairments. The company expects the full implementation of this restructuring plan to conclude within the first calendar quarter of 2009.
Key Highlights
- 1Amendment to a prior 8-K filing to disclose additional restructuring costs.
- 2Total estimated restructuring charges are between $20 million and $26 million.
- 3These charges are expected to be substantially incurred in the quarter ending December 28, 2008.
- 4Cash charges related to workforce reduction (termination benefits) are estimated at $15 million to $20 million.
- 5Non-cash charges for asset impairments are estimated at $5 million to $6 million.
- 6The restructuring plan is anticipated to be completed by the end of the first calendar quarter of 2009.