FREMONT, Calif., July 26, 2023 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended June 25, 2023 (the “June 2023 quarter”).

Highlights for the June 2023 quarter were as follows:

•Revenue of $3.21 billion.

•U.S. GAAP gross margin of 45.5%, U.S. GAAP operating income as a percentage of revenue of 26.6%, and U.S. GAAP diluted EPS of $5.97.

•Non-GAAP gross margin of 45.7%, non-GAAP operating income as a percentage of revenue of 27.3%, and non-GAAP diluted EPS of $5.98.

For the June 2023 quarter, revenue was $3,207 million, gross margin was $1,458 million, or 45.5% of revenue, operating expenses were $604 million, operating income was 26.6% of revenue, and net income was $803 million, or $5.97 per diluted share on a U.S. GAAP basis. This compares to revenue of $3,870 million, gross margin of $1,606 million, or 41.5% of revenue, operating expenses of $663 million, operating income of 24.4% of revenue, and net income of $814 million, or $6.01 per diluted share, for the quarter ended March 26, 2023 (the “March 2023 quarter”).

For the June 2023 quarter, non-GAAP gross margin was $1,465 million, or 45.7% of revenue, non-GAAP operating expenses were $590 million, non-GAAP operating income was 27.3% of revenue, and non-GAAP net income was $803 million, or $5.98 per diluted share. This compares to non-GAAP gross margin of $1,704 million, or 44.0% of revenue, non-GAAP operating expenses of $608 million, non-GAAP operating income of 28.3% of revenue, and non-GAAP net income of $946 million, or $6.99 per diluted share, for the March 2023 quarter.

“Lam executed well in the June quarter with profitability levels exceeding the guided ranges,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “With our investment in a broad, differentiated product portfolio targeted to key technology inflections and a solid foundation for productive collaboration with customers, Lam Research is well positioned to outperform as semiconductors continue to become more critical to the global economy.”

Cash and cash equivalents, short-term investments, and restricted cash and investments balances remained flat at $5.6 billion at the end of the June 2023 quarter compared to the end of the March 2023 quarter. Cash generated from operating activities totaling $1.1 billion was offset by $869.0 million of share repurchases, including net share settlement of employee stock-based compensation; $232.3 million of dividends paid to stockholders; and $78.7 million of capital expenditures.

Deferred revenue at the end of the June 2023 quarter decreased to $1,838 million compared to $2,003 million as of the end of the March 2023 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptances. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $160 million as of June 25, 2023 and $212 million as of March 26, 2023.

The geographic distribution of revenue during the June 2023 quarter is shown in the following table:

The following table presents revenue disaggregated between system and customer support-related revenue:

Systems revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.

Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.

For the quarter ended September 24, 2023, Lam is providing the following guidance:

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

•Gross margin as a percentage of revenue - restructuring charges, $14 million; transformational costs, $4 million; and amortization related to intangible assets acquired through business combinations, $3 million; totaling $21 million.

•Operating income as a percentage of revenue - transformational costs, $15 million; restructuring charges, $14 million; and amortization related to intangible assets acquired through business combinations, $4 million; totaling $33 million.

•Net income per diluted share - transformational costs, $15 million; restructuring charges, $14 million; amortization related to intangible assets acquired though business combinations, $4 million; amortization of debt discounts, $1 million; and associated tax benefit for non-GAAP items ($4 million); totaling $30 million.

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the June 2023 and March 2023 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, net restructuring charges, product rationalization charges, and transformational costs, and the net income tax effect of non-GAAP items. Additionally, the non-GAAP results for the June 2023 quarter exclude the income tax benefit on conclusion of certain tax matters related to a prior business combination.

Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at https://investor.lamresearch.com.

Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margin, operating income and net income; our investments in our products; the breadth, differentiation and targeting of our product portfolio, our positioning in the market; our performance relative to the industry; and the significance of semiconductors to the global economy. Some factors that may affect these forward-looking statements include: trade regulations, export controls, trade disputes and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain cost increases and other inflationary pressures have impacted and are expected to continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10–K for the fiscal year ended June 26, 2022, and our quarterly report on Form 10–Q for the fiscal quarter ended March 26, 2023. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX-F)

Consolidated Financial Tables Follow.

 

 

 

 

 

 

 

 

Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com