LRCX Lam Research Corporation

The Semiconductor Equipment and Materials industry was a hotbed of mergers and acquisitions last year. With competition picking up, and margins getting squeezed, several industry heavyweights looked towards mergers to create cost synergies. The Bedford Report examines the outlook for companies in the Semiconductor Equipment and Materials industry and provides equity research on Applied Materials, Inc. (NASDAQ: AMAT) and Lam Research Corporation (NASDAQ: LRCX). Access to the full company reports can be found at:

www.bedfordreport.com/AMAT

www.bedfordreport.com/LRCX

Last month the semiconductor equipment maker Lam Research Corp. agreed to buy rival Novellus Systems Inc. for $3.3 billion in stock. Lam said that the acquisition will help it cultivate more advanced chip making technology and increase its revenue faster than either company could on its own. The company also expects it to speed up its earnings growth.

When the deal is completed -- which is expected in the second quarter of 2012 -- Lam shareholders will own 59 percent of the new business, with Novellus investors holding the rest, according to last month's statement. The acquisition will result in annual cost savings of about $100 million by the fourth quarter of 2013, Lam explained.

The Bedford Report releases stock research on the Semiconductor Equipment and Materials industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous stock reports and industry newsletters.

According to reports from Bloomberg, Lam's purchase is the largest in the industry since Applied Materials announced plans last May to buy Varian Semiconductor Equipment Associates Inc. for $4.9 billion in cash. Applied paid a 55 percent markup over Varian's closing price in that deal -- close to double the premium in the Novellus acquisition.

Applied Materials, Inc. is the global leader in providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar photovoltaic products. In December the company announced that its Board of Directors approved a quarterly cash dividend of $0.08 per share payable on the company's common stock. The dividend is payable on March 15, 2012 to stockholders of record as of February 23, 2012.

The Bedford Report provides Equity Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create stock reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer

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