Shares of chip equipment maker Lam Research (LRCX) - Get Report were falling after hours Wednesday after the company reported lower-than-expected fiscal third quarter revenue in its latest earnings release.
The Fremont, Calif-based company reported earnings of $3.98 per share on revenue of $2.5 billion. Analysts were expecting the company to report earnings of $3.98 per share on revenue of $2.58 billion.
“Extraordinary efforts by Lam’s global teams helped to mitigate the operational impact of the COVID-19 pandemic, resulting in solid financial performance in the March quarter,” said CEO Tim Archer.
Lam Research shares dropped 4.7% to $259 per share after hours after rising 11.6% during the regular session. Year to date, the stock is down nearly 8% with most of the losses happening since late March.
Last month, the company withdrew its third quarter guidance due to the coronavirus pandemic. The company had previously been expecting to earn between $4.15 and $4.95 per share on sales of $2.8 billion.
The company said that it had $5.6 billion in cash on hand at the end of March after it drew down $1.25 billion from its revolving credit facility.
Prior to the pandemic, Lam Research was facing pressure, along with the rest of the semiconductor segment, due to reports that the U.S. Commerce Department was considering putting restrictions on semiconductor equipment sales to China amid security concerns.
"We believe in the long-term resiliency of the semiconductor industry and are focused on providing innovative technology to our customers and positioning Lam for outperformance as industry conditions normalize," said Archer.