Lam Research (LRCX) - Get Report more than tripled its bottom line during its most recently completed quarter, handily outpacing Wall Street expectations.

The Freemont, Calif., chip-equipment company generated revenue of $604.4 million during the three months ended Sept. 24, compared with $320.9 million in sales at this time a year ago.

Net income surged to $183.5 million, or $1.27 a share, compared with $49.4 million, or 35 cents a share a year ago.

Shares of Lam jumped 5.6%, or $2.68, at $50.80 in extended trading.

Excluding a legal judgment, the resolution of certain foreign tax matters and the repatriation of foreign earnings, Lam said its net income is $163.8 million, or $1.13 a share.

On that basis, Lam still beat the average analyst expectation which called for EPS of $1.03 on revenue of $593.2 million.

Lam CEO Steve Newberry said the company's record operating margins and earnings demonstrate the "leverage throughout our business model."

"In addition we generated record levels of cash from operations, a consequence of our focus on a disciplined approach to asset management," said Newberry in a press release.

Lam, which makes wafer fabrication equipment used by semiconductor companies, said new orders recorded in its backlog during the quarter increased 13% sequentially to $725 million.

The company's healthy orders are in sharp contrast to several recent developments in the chip-equipment sector which have raised fears of an imminent slowdown in the industry.

Earlier this month, industry research firm Gartner predicted that the chip-equipment sector could

see negative growth in 2007, as semiconductor firms put the brakes on capital spending because of inventory and demand concerns.

On Tuesday, Lam said it was

acquiring the silicon growing and fabrication assets of

Bullen Ultrasonics

for roughly $175 million in cash.