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: | October 18, 2023 | LAM RESEARCH CORPORATION |
|||||||||
(Registrant) | |||||||||||
/s/ Douglas R. Bettinger | |||||||||||
Douglas R. Bettinger | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
U.S. GAAP | ||||||||||||||||||||
September 2023 | June 2023 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 3,482,062 | $ | 3,207,257 | + 8.6% | |||||||||||||||
Gross margin as percentage of revenue | 47.5 | % | 45.5 | % | + 200 bps | |||||||||||||||
Operating income as percentage of revenue | 29.4 | % | 26.6 | % | + 280 bps | |||||||||||||||
Diluted EPS | $ | 6.66 | $ | 5.97 | + 11.6% | |||||||||||||||
Non-GAAP | ||||||||||||||||||||
September 2023 | June 2023 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 3,482,062 | $ | 3,207,257 | + 8.6% | |||||||||||||||
Gross margin as percentage of revenue | 47.9 | % | 45.7 | % | + 220 bps | |||||||||||||||
Operating income as percentage of revenue | 30.1 | % | 27.3 | % | + 280 bps | |||||||||||||||
Diluted EPS | $ | 6.85 | $ | 5.98 | + 14.5% |
Region | Revenue | ||||
China | 48% | ||||
Korea | 16% | ||||
Japan | 9% | ||||
United States | 8% | ||||
Taiwan | 7% | ||||
Europe | 7% | ||||
Southeast Asia | 5% |
Three Months Ended | |||||||||||||||||
September 24, 2023 |
June 25, 2023 |
September 25, 2022 |
|||||||||||||||
(In thousands) | |||||||||||||||||
Systems revenue | $ | 2,056,655 | $ | 1,710,359 | $ | 3,181,987 | |||||||||||
Customer support-related revenue and other | 1,425,407 | 1,496,898 | 1,892,134 | ||||||||||||||
$ | 3,482,062 | $ | 3,207,257 | $ | 5,074,121 | ||||||||||||
U.S. GAAP | Reconciling Items | Non-GAAP | ||||||||||||||||||||||||||||||
Revenue | $3.7 Billion | +/- | $300 Million | — | $3.7 Billion | +/- | $300 Million | |||||||||||||||||||||||||
Gross margin as a percentage of revenue | 46.5% | +/- | 1% | $ | 17 | Million | 47.0% | +/- | 1% | |||||||||||||||||||||||
Operating income as a percentage of revenue | 28.6% | +/- | 1% | $ | 32 | Million | 29.5% | +/- | 1% | |||||||||||||||||||||||
Net income per diluted share | $6.78 | +/- | $0.75 | $ | 29 | Million | $7.00 | +/- | $0.75 | |||||||||||||||||||||||
Diluted share count | 132 Million | — | 132 million |
Three Months Ended | |||||||||||||||||
September 24, 2023 |
June 25, 2023 |
September 25, 2022 |
|||||||||||||||
Revenue | $ | 3,482,062 | $ | 3,207,257 | $ | 5,074,121 | |||||||||||
Cost of goods sold | 1,819,420 | 1,737,682 | 2,737,286 | ||||||||||||||
Restructuring charges, net - cost of goods sold | 7,940 | 11,446 | — | ||||||||||||||
Total cost of goods sold | 1,827,360 | 1,749,128 | 2,737,286 | ||||||||||||||
Gross margin | 1,654,702 | 1,458,129 | 2,336,835 | ||||||||||||||
Gross margin as a percent of revenue | 47.5 | % | 45.5 | % | 46.1 | % | |||||||||||
Research and development | 422,629 | 401,951 | 433,375 | ||||||||||||||
Selling, general and administrative | 207,023 | 199,831 | 205,620 | ||||||||||||||
Restructuring charges, net - operating expenses | 2,021 | 1,742 | — | ||||||||||||||
Total operating expenses | 631,673 | 603,524 | 638,995 | ||||||||||||||
Operating income | 1,023,029 | 854,605 | 1,697,840 | ||||||||||||||
Operating income as a percent of revenue | 29.4 | % | 26.6 | % | 33.5 | % | |||||||||||
Other income (expense), net | 2,601 | 9,010 | (43,095) | ||||||||||||||
Income before income taxes | 1,025,630 | 863,615 | 1,654,745 | ||||||||||||||
Income tax expense | (138,232) | (61,078) | (228,866) | ||||||||||||||
Net income | $ | 887,398 | $ | 802,537 | $ | 1,425,879 | |||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 6.69 | $ | 5.99 | $ | 10.42 | |||||||||||
Diluted | $ | 6.66 | $ | 5.97 | $ | 10.39 | |||||||||||
Number of shares used in per share calculations: | |||||||||||||||||
Basic | 132,584 | 134,052 | 136,891 | ||||||||||||||
Diluted | 133,166 | 134,392 | 137,208 | ||||||||||||||
Cash dividend declared per common share | $ | 2.00 | $ | 1.725 | $ | 1.725 | |||||||||||
September 24, 2023 |
June 25, 2023 |
September 25, 2022 |
|||||||||||||||
(unaudited) | (1) | (unaudited) | |||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 5,126,150 | $ | 5,337,056 | $ | 4,256,499 | |||||||||||
Investments | 30,557 | 37,641 | 120,551 | ||||||||||||||
Accounts receivable, net | 2,810,953 | 2,823,376 | 4,569,735 | ||||||||||||||
Inventories | 4,747,781 | 4,816,190 | 4,360,325 | ||||||||||||||
Prepaid expenses and other current assets | 278,121 | 214,149 | 305,554 | ||||||||||||||
Total current assets | 12,993,562 | 13,228,412 | 13,612,664 | ||||||||||||||
Property and equipment, net | 2,110,511 | 1,856,672 | 1,718,791 | ||||||||||||||
Goodwill and intangible assets | 1,784,000 | 1,790,943 | 1,624,932 | ||||||||||||||
Other assets | 1,650,384 | 1,905,616 | 1,764,895 | ||||||||||||||
Total assets | $ | 18,538,457 | $ | 18,781,643 | $ | 18,721,282 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current portion of long-term debt and finance lease obligations | $ | 3,861 | $ | 8,358 | $ | 7,110 | |||||||||||
Other current liabilities | 4,243,316 | 4,176,560 | 5,046,272 | ||||||||||||||
Total current liabilities | 4,247,177 | 4,184,918 | 5,053,382 | ||||||||||||||
Long-term debt and finance lease obligations | 4,980,460 | 5,003,183 | 4,996,363 | ||||||||||||||
Income taxes payable | 780,511 | 882,084 | 840,214 | ||||||||||||||
Other long-term liabilities | 482,979 | 501,286 | 418,756 | ||||||||||||||
Total liabilities | 10,491,127 | 10,571,471 | 11,308,715 | ||||||||||||||
Stockholders’ equity (2) | 8,047,330 | 8,210,172 | 7,412,567 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 18,538,457 | $ | 18,781,643 | $ | 18,721,282 | |||||||||||
(1) | Derived from audited financial statements. | ||||
(2) | Common shares issued and outstanding were 132,072 as of September 24, 2023, 133,297 as of June 25, 2023, and 136,374 as of September 25, 2022. |
Three Months Ended | |||||||||||||||||
September 24, 2023 |
June 25, 2023 |
September 25, 2022 |
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CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 887,398 | $ | 802,537 | $ | 1,425,879 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 90,479 | 89,604 | 75,751 | ||||||||||||||
Deferred income taxes | (24,238) | (38,960) | (133,616) | ||||||||||||||
Equity-based compensation expense | 67,211 | 68,495 | 71,110 | ||||||||||||||
Other, net | (150) | 40,761 | (2,751) | ||||||||||||||
Changes in operating assets and liabilities | (69,537) | 160,288 | (246,785) | ||||||||||||||
Net cash provided by operating activities | 951,163 | 1,122,725 | 1,189,588 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Capital expenditures and intangible assets | (76,992) | (78,670) | (140,063) | ||||||||||||||
Net maturities and sales of available-for-sale securities | 7,275 | 26,280 | 14,695 | ||||||||||||||
Other, net | (4,966) | (2,790) | (2,435) | ||||||||||||||
Net cash used for investing activities | (74,683) | (55,180) | (127,803) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Principal payments on debt, including finance lease obligations | (253,109) | (2,061) | (1,854) | ||||||||||||||
Treasury stock purchases | (843,238) | (869,014) | (109,779) | ||||||||||||||
Dividends paid | (230,332) | (232,336) | (205,615) | ||||||||||||||
Reissuance of treasury stock related to employee stock purchase plan | — | 64,903 | — | ||||||||||||||
Proceeds from issuance of common stock | 2,818 | 3,438 | 6,796 | ||||||||||||||
Other, net | (2,151) | (2,916) | (489) | ||||||||||||||
Net cash used for financing activities | (1,326,012) | (1,037,986) | (310,941) | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (11,031) | 1,477 | (16,925) | ||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (460,563) | 31,036 | 733,919 | ||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period (1) |
5,587,372 | 5,556,336 | 3,773,535 | ||||||||||||||
Cash, cash equivalents, and restricted cash at end of period (1) |
$ | 5,126,809 | $ | 5,587,372 | $ | 4,507,454 | |||||||||||
(1) | Restricted cash is reported within Other assets, in the Condensed Consolidated Balance Sheets |
Three Months Ended | |||||||||||
September 24, 2023 |
June 25, 2023 |
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Revenue | $ | 3,482,062 | $ | 3,207,257 | |||||||
Gross margin | $ | 1,669,469 | $ | 1,465,207 | |||||||
Gross margin as percentage of revenue | 47.9 | % | 45.7 | % | |||||||
Operating expenses | $ | 622,219 | $ | 589,914 | |||||||
Operating income | $ | 1,047,250 | $ | 875,293 | |||||||
Operating income as a percentage of revenue | 30.1 | % | 27.3 | % | |||||||
Net income | $ | 912,439 | $ | 803,125 | |||||||
Net income per diluted share | $ | 6.85 | $ | 5.98 | |||||||
Shares used in per share calculation - diluted | 133,166 | 134,392 |
Three Months Ended | |||||||||||
September 24, 2023 |
June 25, 2023 |
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U.S. GAAP net income | $ | 887,398 | $ | 802,537 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 3,149 | 3,093 | |||||||||
Elective deferred compensation ("EDC") related liability valuation (decrease) increase - cost of goods sold | (591) | 4,288 | |||||||||
Restructuring charges, net - cost of goods sold | 7,940 | 11,446 | |||||||||
Product rationalization - cost of goods sold | — | (13,383) | |||||||||
Transformational costs - cost of goods sold | 4,269 | 1,634 | |||||||||
EDC related liability valuation (decrease) increase - research and development | (1,064) | 7,719 | |||||||||
Product rationalization - research and development | — | (3,795) | |||||||||
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative | 1,186 | 1,395 | |||||||||
EDC related liability valuation (decrease) increase - selling, general and administrative | (709) | 5,146 | |||||||||
Product rationalization - selling, general and administrative | — | (2,891) | |||||||||
Transformational costs - selling, general and administrative | 8,020 | 4,294 | |||||||||
Restructuring charges, net - operating expenses | 2,021 | 1,742 | |||||||||
Amortization of note discounts - other income (expense), net | 1,017 | 724 | |||||||||
Loss (gain) on EDC related asset - other income (expense), net | 2,901 | (16,599) | |||||||||
Net income tax benefit on non-GAAP items | (3,098) | (1,146) | |||||||||
Income tax benefit on the conclusion of certain tax matters | — | (3,079) | |||||||||
Non-GAAP net income | $ | 912,439 | $ | 803,125 | |||||||
Non-GAAP net income per diluted share | $ | 6.85 | $ | 5.98 | |||||||
U.S. GAAP net income per diluted share | $ | 6.66 | $ | 5.97 | |||||||
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation | 133,166 | 134,392 | |||||||||
Three Months Ended | |||||||||||
September 24, 2023 |
June 25, 2023 |
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U.S. GAAP gross margin | $ | 1,654,702 | $ | 1,458,129 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | 3,149 | 3,093 | |||||||||
EDC related liability valuation (decrease) increase | (591) | 4,288 | |||||||||
Restructuring charges, net | 7,940 | 11,446 | |||||||||
Product rationalization | — | (13,383) | |||||||||
Transformational costs | 4,269 | 1,634 | |||||||||
Non-GAAP gross margin | $ | 1,669,469 | $ | 1,465,207 | |||||||
U.S. GAAP gross margin as a percentage of revenue | 47.5 | % | 45.5 | % | |||||||
Non-GAAP gross margin as a percentage of revenue | 47.9 | % | 45.7 | % | |||||||
U.S. GAAP operating expenses | $ | 631,673 | $ | 603,524 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | (1,186) | (1,395) | |||||||||
EDC related liability valuation decrease (increase) | 1,773 | (12,865) | |||||||||
Restructuring charges, net | (2,021) | (1,742) | |||||||||
Product rationalization | — | 6,686 | |||||||||
Transformational costs | (8,020) | (4,294) | |||||||||
Non-GAAP operating expenses | $ | 622,219 | $ | 589,914 | |||||||
U.S. GAAP operating income | $ | 1,023,029 | $ | 854,605 | |||||||
Non-GAAP operating income | $ | 1,047,250 | $ | 875,293 | |||||||
U.S. GAAP operating income as percent of revenue | 29.4 | % | 26.6 | % | |||||||
Non-GAAP operating income as a percent of revenue | 30.1 | % | 27.3 | % |