First-quarter sales could fall as much as 15 percent from Lam's prior forecast of US$480 million to US$490 million, the company said. Lam is expected to earn US$0.49 a share, the average estimate of analysts surveyed by First Call/Thomson Financial.
The company is cutting the salaries of all board members and executives by as much as 10 percent and delaying merit raises. All discretionary spending is under review.
Demand for Lam's tools, which etch film to make a circuit on a computer chip, is falling because of lower customer spending, not a loss of sales to rivals, the Fremont, California-based company said.
Lam shares fell US$1.50 to US$21.50. They've fallen 53 percent in the past year.
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