Delaware | 0-12933 | 94-2634797 | ||||||||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, Par Value $0.001 Per Share | LRCX | The Nasdaq Stock Market | ||||||
(Nasdaq Global Select Market) |
Item 2.02. | Results of Operations and Financial Condition | |||||||||||||
Item 9.01. | Financial Statements and Exhibits | |||||||||||||
SIGNATURES | ||||||||||||||
EX-99.1 | ||||||||||||||
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01. | Financial Statements and Exhibits |
99.1 | |||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
Date: | April 19, 2023 | LAM RESEARCH CORPORATION |
|||||||||
(Registrant) | |||||||||||
/s/ Douglas R. Bettinger | |||||||||||
Douglas R. Bettinger | |||||||||||
Executive Vice President, Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
U.S. GAAP | ||||||||||||||||||||
March 2023 | December 2022 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 3,869,569 | $ | 5,277,569 | - 26.7% | |||||||||||||||
Gross margin as percentage of revenue | 41.5 | % | 45.0 | % | - 350 bps | |||||||||||||||
Operating income as percentage of revenue | 24.4 | % | 31.8 | % | - 740 bps | |||||||||||||||
Diluted EPS | $ | 6.01 | $ | 10.77 | - 44.2% | |||||||||||||||
Non-GAAP | ||||||||||||||||||||
March 2023 | December 2022 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 3,869,569 | $ | 5,277,569 | - 26.7% | |||||||||||||||
Gross margin as percentage of revenue | 44.0 | % | 45.1 | % | - 110 bps | |||||||||||||||
Operating income as percentage of revenue | 28.3 | % | 32.1 | % | - 380 bps | |||||||||||||||
Diluted EPS | $ | 6.99 | $ | 10.71 | - 34.7% |
Region | Revenue | ||||
Korea | 22% | ||||
China | 22% | ||||
Taiwan | 18% | ||||
United States | 16% | ||||
Japan | 10% | ||||
Europe | 8% | ||||
Southeast Asia | 4% |
Three Months Ended | |||||||||||||||||
March 26, 2023 |
December 25, 2022 |
March 27, 2022 |
|||||||||||||||
(In thousands) | |||||||||||||||||
System revenue | $ | 2,256,033 | $ | 3,547,518 | $ | 2,650,842 | |||||||||||
Customer support-related revenue and other | 1,613,536 | 1,730,051 | 1,409,574 | ||||||||||||||
$ | 3,869,569 | $ | 5,277,569 | $ | 4,060,416 | ||||||||||||
U.S. GAAP | Reconciling Items | Non-GAAP | ||||||||||||||||||||||||||||||
Revenue | $3.1 Billion | +/- | $300 Million | — | $3.1 Billion | +/- | $300 Million | |||||||||||||||||||||||||
Gross margin as a percentage of revenue | 43.2% | +/- | 1% | $ | 26 | Million | 44.0% | +/- | 1% | |||||||||||||||||||||||
Operating income as a percentage of revenue | 24.3% | +/- | 1% | $ | 36 | Million | 25.5% | +/- | 1% | |||||||||||||||||||||||
Net income per diluted share | $4.75 | +/- | $0.75 | $ | 33 | Million | $5.00 | +/- | $0.75 | |||||||||||||||||||||||
Diluted share count | 134 million | — | 134 million |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 26, 2023 |
December 25, 2022 |
March 27, 2022 |
March 26, 2023 |
March 27, 2022 |
|||||||||||||||||||||||||
Revenue | $ | 3,869,569 | $ | 5,277,569 | $ | 4,060,416 | $ | 14,221,259 | $ | 12,591,485 | |||||||||||||||||||
Cost of goods sold | 2,197,237 | 2,901,220 | 2,243,791 | 7,835,743 | 6,820,190 | ||||||||||||||||||||||||
Restructuring charges, net - cost of goods sold | 66,720 | — | — | 66,720 | — | ||||||||||||||||||||||||
Total cost of goods sold | 2,263,957 | 2,901,220 | 2,243,791 | 7,902,463 | 6,820,190 | ||||||||||||||||||||||||
Gross margin | 1,605,612 | 2,376,349 | 1,816,625 | 6,318,796 | 5,771,295 | ||||||||||||||||||||||||
Gross margin as a percent of revenue | 41.5 | % | 45.0 | % | 44.7 | % | 44.4 | % | 45.8 | % | |||||||||||||||||||
Research and development | 429,451 | 462,385 | 407,120 | 1,325,211 | 1,193,091 | ||||||||||||||||||||||||
Selling, general and administrative | 193,500 | 233,802 | 217,408 | 632,922 | 675,735 | ||||||||||||||||||||||||
Restructuring charges, net - operating expenses | 40,408 | — | — | 40,408 | — | ||||||||||||||||||||||||
Total operating expenses | 663,359 | 696,187 | 624,528 | 1,998,541 | 1,868,826 | ||||||||||||||||||||||||
Operating income | 942,253 | 1,680,162 | 1,192,097 | 4,320,255 | 3,902,469 | ||||||||||||||||||||||||
Operating income as a percent of revenue | 24.4 | % | 31.8 | % | 29.4 | % | 30.4 | % | 31.0 | % | |||||||||||||||||||
Other income (expense), net | (3,331) | (28,234) | (57,402) | (74,660) | (68,260) | ||||||||||||||||||||||||
Income before income taxes | 938,922 | 1,651,928 | 1,134,695 | 4,245,595 | 3,834,209 | ||||||||||||||||||||||||
Income tax expense | (124,914) | (183,421) | (112,917) | (537,201) | (437,857) | ||||||||||||||||||||||||
Net income | $ | 814,008 | $ | 1,468,507 | $ | 1,021,778 | $ | 3,708,394 | $ | 3,396,352 | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 6.03 | $ | 10.80 | $ | 7.34 | $ | 27.28 | $ | 24.17 | |||||||||||||||||||
Diluted | $ | 6.01 | $ | 10.77 | $ | 7.30 | $ | 27.20 | $ | 24.02 | |||||||||||||||||||
Number of shares used in per share calculations: | |||||||||||||||||||||||||||||
Basic | 134,924 | 136,018 | 139,229 | 135,945 | 140,534 | ||||||||||||||||||||||||
Diluted | 135,395 | 136,339 | 140,057 | 136,314 | 141,400 | ||||||||||||||||||||||||
Cash dividend declared per common share | $ | 1.725 | $ | 1.725 | $ | 1.50 | $ | 5.175 | $ | 4.50 | |||||||||||||||||||
March 26, 2023 |
December 25, 2022 |
June 26, 2022 |
|||||||||||||||
(unaudited) | (unaudited) | (1) | |||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 5,305,648 | $ | 4,484,716 | $ | 3,522,001 | |||||||||||
Investments | 63,849 | 103,130 | 135,731 | ||||||||||||||
Accounts receivable, net | 3,262,140 | 4,070,088 | 4,313,818 | ||||||||||||||
Inventories | 4,881,935 | 4,819,966 | 3,966,294 | ||||||||||||||
Prepaid expenses and other current assets | 216,455 | 230,888 | 347,391 | ||||||||||||||
Total current assets | 13,730,027 | 13,708,788 | 12,285,235 | ||||||||||||||
Property and equipment, net | 1,855,117 | 1,863,155 | 1,647,587 | ||||||||||||||
Restricted cash and investments | 250,688 | 251,344 | 251,534 | ||||||||||||||
Goodwill and intangible assets | 1,801,819 | 1,805,218 | 1,616,963 | ||||||||||||||
Other assets | 1,605,710 | 1,577,876 | 1,394,313 | ||||||||||||||
Total assets | $ | 19,243,361 | $ | 19,206,381 | $ | 17,195,632 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current portion of long-term debt and finance lease obligations | $ | 8,457 | $ | 7,226 | $ | 7,381 | |||||||||||
Other current liabilities | 4,432,872 | 4,539,696 | 4,557,378 | ||||||||||||||
Total current liabilities | 4,441,329 | 4,546,922 | 4,564,759 | ||||||||||||||
Long-term debt and finance lease obligations | 4,996,920 | 4,996,057 | 4,998,449 | ||||||||||||||
Income taxes payable | 885,348 | 862,405 | 931,117 | ||||||||||||||
Other long-term liabilities | 512,376 | 496,362 | 422,941 | ||||||||||||||
Total liabilities | 10,835,973 | 10,901,746 | 10,917,266 | ||||||||||||||
Stockholders’ equity (2) | 8,407,388 | 8,304,635 | 6,278,366 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 19,243,361 | $ | 19,206,381 | $ | 17,195,632 | |||||||||||
(1) | Derived from audited financial statements. | ||||
(2) | Common shares issued and outstanding were 134,692 as of March 26, 2023, 135,403 as of December 25, 2022, and 136,975 as of June 26, 2022. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 26, 2023 |
December 25, 2022 |
March 27, 2022 |
March 26, 2023 |
March 27, 2022 |
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CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||||||
Net income | $ | 814,008 | $ | 1,468,507 | $ | 1,021,778 | $ | 3,708,394 | $ | 3,396,352 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||
Depreciation and amortization | 91,663 | 85,414 | 84,228 | 252,828 | 245,807 | ||||||||||||||||||||||||
Deferred income taxes | 7,195 | (6,680) | (56,878) | (133,101) | (83,451) | ||||||||||||||||||||||||
Equity-based compensation expense | 73,911 | 73,084 | 68,543 | 218,105 | 189,476 | ||||||||||||||||||||||||
Other, net | 1,559 | 12,729 | (3,121) | 11,537 | (78,325) | ||||||||||||||||||||||||
Changes in operating assets and liabilities | 738,102 | (492,867) | (356,840) | (1,550) | (1,014,119) | ||||||||||||||||||||||||
Net cash provided by operating activities | 1,726,438 | 1,140,187 | 757,710 | 4,056,213 | 2,655,740 | ||||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||
Capital expenditures and intangible assets | (119,457) | (163,378) | (145,368) | (422,898) | (420,288) | ||||||||||||||||||||||||
Business acquisitions, net of cash acquired | — | (119,955) | — | (119,955) | — | ||||||||||||||||||||||||
Net maturities and sales of available-for-sale securities | 39,414 | 17,743 | 79,184 | 71,852 | 1,142,398 | ||||||||||||||||||||||||
Other, net | (4,289) | (1,657) | (28,380) | (8,381) | (33,898) | ||||||||||||||||||||||||
Net cash (used for) provided by investing activities | (84,332) | (267,247) | (94,564) | (479,382) | 688,212 | ||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||||
Principal payments on debt | (2,209) | (17,082) | (1,821) | (21,145) | (9,857) | ||||||||||||||||||||||||
Treasury stock purchases | (581,943) | (456,276) | (1,338,006) | (1,147,998) | (2,989,574) | ||||||||||||||||||||||||
Dividends paid | (233,977) | (235,980) | (210,587) | (675,572) | (607,234) | ||||||||||||||||||||||||
Reissuance of treasury stock related to employee stock purchase plan | — | 44,996 | — | 44,996 | 46,380 | ||||||||||||||||||||||||
Proceeds from issuance of common stock | — | 877 | 492 | 7,673 | 4,685 | ||||||||||||||||||||||||
Other, net | (1,399) | 1,253 | 214 | (635) | 197 | ||||||||||||||||||||||||
Net cash used for financing activities | (819,528) | (662,212) | (1,549,708) | (1,792,681) | (3,555,403) | ||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (2,302) | 17,878 | (5,090) | (1,349) | (13,544) | ||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 820,276 | 228,606 | (891,652) | 1,782,801 | (224,995) | ||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 4,736,060 | 4,507,454 | 5,337,407 | 3,773,535 | 4,670,750 | ||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 5,556,336 | $ | 4,736,060 | $ | 4,445,755 | $ | 5,556,336 | $ | 4,445,755 | |||||||||||||||||||
Three Months Ended | |||||||||||
March 26, 2023 |
December 25, 2022 |
||||||||||
Revenue | $ | 3,869,569 | $ | 5,277,569 | |||||||
Gross margin | $ | 1,704,323 | $ | 2,381,723 | |||||||
Gross margin as percentage of revenue | 44.0 | % | 45.1 | % | |||||||
Operating expenses | $ | 607,620 | $ | 686,348 | |||||||
Operating income | $ | 1,096,703 | $ | 1,695,375 | |||||||
Operating income as a percentage of revenue | 28.3 | % | 32.1 | % | |||||||
Net income | $ | 946,483 | $ | 1,460,575 | |||||||
Net income per diluted share | $ | 6.99 | $ | 10.71 | |||||||
Shares used in per share calculation - diluted | 135,395 | 136,339 |
Three Months Ended | |||||||||||
March 26, 2023 |
December 25, 2022 |
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U.S. GAAP net income | $ | 814,008 | $ | 1,468,507 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 3,093 | 2,521 | |||||||||
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold | 1,498 | 2,853 | |||||||||
Restructuring charges, net - cost of goods sold | 66,720 | — | |||||||||
Product rationalization - cost of goods sold | 26,842 | — | |||||||||
Transformational costs - cost of goods sold | 558 | — | |||||||||
EDC related liability valuation increase - research and development | 2,697 | 5,136 | |||||||||
Product rationalization - research and development | 3,858 | — | |||||||||
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative | 1,395 | 1,279 | |||||||||
EDC related liability valuation increase - selling, general and administrative | 1,798 | 3,424 | |||||||||
Product rationalization - selling, general and administrative | 2,891 | — | |||||||||
Transformational costs - selling, general and administrative | 2,692 | — | |||||||||
Restructuring charges, net- operating expenses | 40,408 | — | |||||||||
Amortization of note discounts - other income (expense), net | 718 | 712 | |||||||||
Gain on EDC related asset - other income (expense), net | (5,443) | (10,871) | |||||||||
Net income tax benefit on non-GAAP items | (17,250) | (1,213) | |||||||||
Net income tax benefit associated with legal entity restructuring | — | (11,773) | |||||||||
Non-GAAP net income | $ | 946,483 | $ | 1,460,575 | |||||||
Non-GAAP net income per diluted share | $ | 6.99 | $ | 10.71 | |||||||
U.S. GAAP net income per diluted share | $ | 6.01 | $ | 10.77 | |||||||
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation | 135,395 | 136,339 | |||||||||
Three Months Ended | |||||||||||
March 26, 2023 |
December 25, 2022 |
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U.S. GAAP gross margin | $ | 1,605,612 | $ | 2,376,349 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | 3,093 | 2,521 | |||||||||
EDC related liability valuation increase | 1,498 | 2,853 | |||||||||
Restructuring charges, net | 66,720 | — | |||||||||
Product rationalization | 26,842 | — | |||||||||
Transformational costs | 558 | — | |||||||||
Non-GAAP gross margin | $ | 1,704,323 | $ | 2,381,723 | |||||||
U.S. GAAP gross margin as a percentage of revenue | 41.5 | % | 45.0 | % | |||||||
Non-GAAP gross margin as a percentage of revenue | 44.0 | % | 45.1 | % | |||||||
U.S. GAAP operating expenses | $ | 663,359 | $ | 696,187 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | (1,395) | (1,279) | |||||||||
EDC related liability valuation increase | (4,495) | (8,560) | |||||||||
Restructuring charges, net | (40,408) | — | |||||||||
Product rationalization | (6,749) | — | |||||||||
Transformational costs | (2,692) | — | |||||||||
Non-GAAP operating expenses | $ | 607,620 | $ | 686,348 | |||||||
U.S. GAAP operating income | $ | 942,253 | $ | 1,680,162 | |||||||
Non-GAAP operating income | $ | 1,096,703 | $ | 1,695,375 | |||||||
U.S. GAAP operating income as percent of revenue | 24.4 | % | 31.8 | % | |||||||
Non-GAAP operating income as a percent of revenue | 28.3 | % | 32.1 | % |