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Updated from 5:03 p.m. EDT

Lam Research


on Wednesday reported third-quarter profit and revenue that topped Street estimates.

For the quarter ended March 26, on a GAAP basis, the company earned 60 cents a share, or $86.3 million, up from $59.5 million, or 41 cents in the year-ago quarter.

Excluding items, the chip-equipment maker earned $93.7 million, or 65 cents a share, 3 cents better than the Thomson First Call consensus.

Lam reported revenue of $437.4 million, compared with a top line of $349.34 million in the same period last year, a 22.1% year-over-year increase. The numbers also beat Street estimates of $424.3 million for the quarter.

Investors immediately didn't cheer the news and sent shares down more than 2%; in recent after-hours trade Lam swung to a 4.9% increase, or $2.19, to $46.90.

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CEO Stephen Newberry said that "market share gains and solid execution drove strong results for the March quarter."

Operating income, he said, "grew 43%, when compared to the December quarter, and we generated cash from operations at 25% of revenue."

Shares of Lam, which is based in Fremont, Calif., closed the regular session down 8 cents to $44.71.

The company, which is a major supplier of wafer-fabrication equipment and services to the semiconductor industry, according to

, sees a rise in orders of 5% to 15%, and a 10% to 12% increase in product shipments in the June quarter.

That should help boost revenue to between $490 million and $510 million, Lam says, a forecast that soundly surpasses the First Call consensus of $468 million in sales.

Lam estimated fourth-quarter earnings at 80 cents to 85 cents a share, a big bump from First Call analysts' guidance of 72 cents.