Lam Research Corp.
) announced that Virtela, a Colorado-based network service
provider, has extended its managed services contract to offer its
cloud management and networking solutions platform to Lam. The
contract now enjoys a four-year extension.
Virtela is the world's largest independent managed network,
security and cloud services company. Many leading global
companies namely Comcast,
), and Kodak depend on Virtela for their networking, security and
As per the agreement, Virtela will work with IBM to provide
various services to Lam including Local Area Network (LAN) and
Wireless Local Area Network (WLAN) designs, application
acceleration, security and cloud network services.
Lam Research management expressed their satisfaction stating
that Virtela has been delivering high performance enterprise
networking solutions across the company's U.S., Europe and
Asia-Pacific locations. Lam Research will benefit from Virtela's
cost-effective solutions and knowhow.
The entire semiconductor industry is undergoing a shift toward
software-centric solutions that eliminate the need for expensive
hardware and provide administrators remote access to networks.
The need for security and cloud centric solutions is increasing
with time. We believe that Virtela's services will help Lam to
deal with the complexities of manufacturing and lower the
ownership cost of technologies.
To survive the cutthroat competition and the changing dynamics
of the semiconductor industry, companies are entering into
partnerships and contracts to provide better solutions at a
faster pace to customers.
In the second quarter of fiscal 2013, Lam Research reported
$860.9 million of revenues, which was down 5.1% sequentially but
up 47.4% year over year. The year-over-year improvement was aided
by higher shipments, as a result of escalating demand for LRCX
Lam Research shares carry a Zacks Rank #3 (Hold).
), which carries a Zacks Rank #2 (Buy), is also performing well
and is therefore worth considering.
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