Chip-making equipment supplier Lam Research said revenue fell 4.7 percent to $3.87 billion in the quarter ended March 26, its first quarterly drop in over three years.
Lam Research forecast June-quarter revenue of $3.1 billion, plus or minus $300 million, as U.S. export restrictions on sale of certain technology to China and weakness in the semiconductor market weigh on the business.

Lam Research posted revenue of $3,870 million, gross margin of $1,606 million, or 41.5 percent of revenue, operating expenses of $663 million, operating income of 24.4 percent of revenue, and net income of $814 million for the March 2023 quarter.

This compares to revenue of $5,278 million, gross margin of $2,376 million, or 45.0 percent of revenue, operating expenses of $696 million, operating income of 31.8 percent of revenue, and net income of $1,469 million for the quarter ended December 25, 2022.

Wafer fabrication equipment (WFE) makers Lam Research, KLA and Applied Materials, have said their 2023 revenue projections are likely to be hit between $600 million and $2.5 billion due to the export restrictions. Meanwhile, their customers, mainly chip-makers, have cut back orders as personal computer and server sales dwindle.

Lam Research said the geographic distribution of revenue during the March 2023 quarter was: Korea (22 percent of total revenue), China (22 percent), Taiwan 18 percent), United States (16 percent), Japan (10 percent) and Europe (8 percent) and Southeast Asia (4 percent),

Lam Research cut 7 percent of its workforce in January and had projected WEF spending is likely fall to mid-$70 billion range this year from mid-$90 billion in 2022. The company had flagged pull-back in business, particularly from customers in the memory devices market.