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: | January 24, 2024 | LAM RESEARCH CORPORATION |
|||||||||
(Registrant) | |||||||||||
/s/ Douglas R. Bettinger | |||||||||||
Douglas R. Bettinger | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
U.S. GAAP | ||||||||||||||||||||
December 2023 | September 2023 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 3,758,259 | $ | 3,482,062 | + 7.9% | |||||||||||||||
Gross margin as percentage of revenue | 46.8 | % | 47.5 | % | - 70 bps | |||||||||||||||
Operating income as percentage of revenue | 28.1 | % | 29.4 | % | - 130 bps | |||||||||||||||
Diluted EPS | $ | 7.22 | $ | 6.66 | + 8.4% | |||||||||||||||
Non-GAAP | ||||||||||||||||||||
December 2023 | September 2023 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 3,758,259 | $ | 3,482,062 | + 7.9% | |||||||||||||||
Gross margin as percentage of revenue | 47.6 | % | 47.9 | % | - 30 bps | |||||||||||||||
Operating income as percentage of revenue | 30.0 | % | 30.1 | % | - 10 bps | |||||||||||||||
Diluted EPS | $ | 7.52 | $ | 6.85 | + 9.8% |
Region | Revenue | ||||
China | 40% | ||||
Korea | 19% | ||||
Japan | 14% | ||||
Taiwan | 13% | ||||
United States | 5% | ||||
Europe | 5% | ||||
Southeast Asia | 4% |
Three Months Ended | |||||||||||||||||
December 24, 2023 |
September 24, 2023 |
December 25, 2022 |
|||||||||||||||
(In thousands) | |||||||||||||||||
Systems revenue | $ | 2,299,286 | $ | 2,056,655 | $ | 3,547,518 | |||||||||||
Customer support-related revenue and other | 1,458,973 | 1,425,407 | 1,730,051 | ||||||||||||||
$ | 3,758,259 | $ | 3,482,062 | $ | 5,277,569 | ||||||||||||
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 | 47.2% | +/- | 1% | $ | 28 | Million | 48.0% | +/- | 1% | |||||||||||||||||||||||
Operating income as a percentage of revenue | 28.1% | +/- | 1% | $ | 51 | Million | 29.5% | +/- | 1% | |||||||||||||||||||||||
Net income per diluted share | $6.90 | +/- | $0.75 | $ | 46 | Million | $7.25 | +/- | $0.75 | |||||||||||||||||||||||
Diluted share count | 132 million | — | 132 million |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
December 24, 2023 |
September 24, 2023 |
December 25, 2022 |
December 24, 2023 |
December 25, 2022 |
|||||||||||||||||||||||||
Revenue | $ | 3,758,259 | $ | 3,482,062 | $ | 5,277,569 | $ | 7,240,321 | $ | 10,351,690 | |||||||||||||||||||
Cost of goods sold | 1,985,847 | 1,819,420 | 2,901,220 | 3,805,267 | 5,638,506 | ||||||||||||||||||||||||
Restructuring charges, net - cost of goods sold | 14,957 | 7,940 | — | 22,897 | — | ||||||||||||||||||||||||
Total cost of goods sold | 2,000,804 | 1,827,360 | 2,901,220 | 3,828,164 | 5,638,506 | ||||||||||||||||||||||||
Gross margin | 1,757,455 | 1,654,702 | 2,376,349 | 3,412,157 | 4,713,184 | ||||||||||||||||||||||||
Gross margin as a percent of revenue | 46.8 | % | 47.5 | % | 45.0 | % | 47.1 | % | 45.5 | % | |||||||||||||||||||
Research and development | 469,712 | 422,629 | 462,385 | 892,341 | 895,760 | ||||||||||||||||||||||||
Selling, general and administrative | 228,843 | 207,023 | 233,802 | 435,866 | 439,422 | ||||||||||||||||||||||||
Restructuring charges, net - operating expenses | 1,688 | 2,021 | — | 3,709 | — | ||||||||||||||||||||||||
Total operating expenses | 700,243 | 631,673 | 696,187 | 1,331,916 | 1,335,182 | ||||||||||||||||||||||||
Operating income | 1,057,212 | 1,023,029 | 1,680,162 | 2,080,241 | 3,378,002 | ||||||||||||||||||||||||
Operating income as a percent of revenue | 28.1 | % | 29.4 | % | 31.8 | % | 28.7 | % | 32.6 | % | |||||||||||||||||||
Other income (expense), net | 29,839 | 2,601 | (28,234) | 32,440 | (71,329) | ||||||||||||||||||||||||
Income before income taxes | 1,087,051 | 1,025,630 | 1,651,928 | 2,112,681 | 3,306,673 | ||||||||||||||||||||||||
Income tax expense | (132,785) | (138,232) | (183,421) | (271,017) | (412,287) | ||||||||||||||||||||||||
Net income | $ | 954,266 | $ | 887,398 | $ | 1,468,507 | $ | 1,841,664 | $ | 2,894,386 | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 7.25 | $ | 6.69 | $ | 10.80 | $ | 13.94 | $ | 21.21 | |||||||||||||||||||
Diluted | $ | 7.22 | $ | 6.66 | $ | 10.77 | $ | 13.88 | $ | 21.16 | |||||||||||||||||||
Number of shares used in per share calculations: | |||||||||||||||||||||||||||||
Basic | 131,629 | 132,584 | 136,018 | 132,107 | 136,455 | ||||||||||||||||||||||||
Diluted | 132,220 | 133,166 | 136,339 | 132,693 | 136,774 | ||||||||||||||||||||||||
Cash dividend declared per common share | $ | 2.00 | $ | 2.00 | $ | 1.725 | $ | 4.00 | $ | 3.450 | |||||||||||||||||||
December 24, 2023 |
September 24, 2023 |
June 25, 2023 |
|||||||||||||||
(unaudited) | (unaudited) | (1) | |||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 5,623,289 | $ | 5,126,150 | $ | 5,337,056 | |||||||||||
Investments | 14,720 | 30,557 | 37,641 | ||||||||||||||
Accounts receivable, net | 2,707,458 | 2,810,953 | 2,823,376 | ||||||||||||||
Inventories | 4,429,906 | 4,747,781 | 4,816,190 | ||||||||||||||
Prepaid expenses and other current assets | 279,239 | 278,121 | 214,149 | ||||||||||||||
Total current assets | 13,054,612 | 12,993,562 | 13,228,412 | ||||||||||||||
Property and equipment, net | 2,147,482 | 2,110,511 | 1,856,672 | ||||||||||||||
Goodwill and intangible assets | 1,777,593 | 1,784,000 | 1,790,943 | ||||||||||||||
Other assets | 1,804,165 | 1,650,384 | 1,905,616 | ||||||||||||||
Total assets | $ | 18,783,852 | $ | 18,538,457 | $ | 18,781,643 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current portion of long-term debt and finance lease obligations | $ | 3,779 | $ | 3,861 | $ | 8,358 | |||||||||||
Other current liabilities | 4,268,604 | 4,243,316 | 4,176,560 | ||||||||||||||
Total current liabilities | 4,272,383 | 4,247,177 | 4,184,918 | ||||||||||||||
Long-term debt and finance lease obligations | 4,980,005 | 4,980,460 | 5,003,183 | ||||||||||||||
Income taxes payable | 797,556 | 780,511 | 882,084 | ||||||||||||||
Other long-term liabilities | 511,430 | 482,979 | 501,286 | ||||||||||||||
Total liabilities | 10,561,374 | 10,491,127 | 10,571,471 | ||||||||||||||
Stockholders’ equity (2) | 8,222,478 | 8,047,330 | 8,210,172 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 18,783,852 | $ | 18,538,457 | $ | 18,781,643 | |||||||||||
(1) | Derived from audited financial statements. | ||||
(2) | Common shares issued and outstanding were 131,278 as of December 24, 2023, 132,072 as of September 24, 2023, and 133,297 as of June 25, 2023. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
December 24, 2023 |
September 24, 2023 |
December 25, 2022 |
December 24, 2023 |
December 25, 2022 |
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CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||||||
Net income | $ | 954,266 | $ | 887,398 | $ | 1,468,507 | $ | 1,841,664 | $ | 2,894,386 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||
Depreciation and amortization | 90,941 | 90,479 | 85,414 | 181,420 | 161,165 | ||||||||||||||||||||||||
Deferred income taxes | (88,747) | (24,238) | (6,680) | (112,985) | (140,296) | ||||||||||||||||||||||||
Equity-based compensation expense | 69,901 | 67,211 | 73,084 | 137,112 | 144,194 | ||||||||||||||||||||||||
Other, net | 4,182 | (150) | 12,729 | 4,032 | 9,978 | ||||||||||||||||||||||||
Changes in operating assets and liabilities | 423,297 | (69,537) | (492,867) | 353,760 | (739,652) | ||||||||||||||||||||||||
Net cash provided by operating activities | 1,453,840 | 951,163 | 1,140,187 | 2,405,003 | 2,329,775 | ||||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||
Capital expenditures and intangible assets | (115,276) | (76,992) | (163,378) | (192,268) | (303,441) | ||||||||||||||||||||||||
Business acquisitions, net of cash acquired | — | — | (119,955) | — | (119,955) | ||||||||||||||||||||||||
Net maturities and sales of available-for-sale securities | 15,841 | 7,275 | 17,743 | 23,116 | 32,438 | ||||||||||||||||||||||||
Other, net | (2,523) | (4,966) | (1,657) | (7,489) | (4,092) | ||||||||||||||||||||||||
Net cash used for investing activities | (101,958) | (74,683) | (267,247) | (176,641) | (395,050) | ||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||||
Principal payments on debt, including finance lease obligations | (986) | (253,109) | (17,082) | (254,095) | (18,936) | ||||||||||||||||||||||||
Treasury stock purchases | (645,458) | (843,238) | (456,276) | (1,488,696) | (566,055) | ||||||||||||||||||||||||
Dividends paid | (264,414) | (230,332) | (235,980) | (494,746) | (441,595) | ||||||||||||||||||||||||
Reissuance of treasury stock related to employee stock purchase plan | 53,081 | — | 44,996 | 53,081 | 44,996 | ||||||||||||||||||||||||
Proceeds from issuance of common stock | 1,704 | 2,818 | 877 | 4,522 | 7,673 | ||||||||||||||||||||||||
Other, net | (3,821) | (2,151) | 1,253 | (5,972) | 764 | ||||||||||||||||||||||||
Net cash used for financing activities | (859,894) | (1,326,012) | (662,212) | (2,185,906) | (973,153) | ||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 6,725 | (11,031) | 17,878 | (4,306) | 953 | ||||||||||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | 498,713 | (460,563) | 228,606 | 38,150 | 962,525 | ||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period (1) |
5,126,809 | 5,587,372 | 4,507,454 | 5,587,372 | 3,773,535 | ||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period (1) |
$ | 5,625,522 | $ | 5,126,809 | $ | 4,736,060 | $ | 5,625,522 | $ | 4,736,060 | |||||||||||||||||||
(1) | Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets |
Three Months Ended | |||||||||||
December 24, 2023 |
September 24, 2023 |
||||||||||
Revenue | $ | 3,758,259 | $ | 3,482,062 | |||||||
Gross margin | $ | 1,790,388 | $ | 1,669,469 | |||||||
Gross margin as percentage of revenue | 47.6 | % | 47.9 | % | |||||||
Operating expenses | $ | 662,259 | $ | 622,219 | |||||||
Operating income | $ | 1,128,129 | $ | 1,047,250 | |||||||
Operating income as a percentage of revenue | 30.0 | % | 30.1 | % | |||||||
Net income | $ | 994,285 | $ | 912,439 | |||||||
Net income per diluted share | $ | 7.52 | $ | 6.85 | |||||||
Shares used in per share calculation - diluted | 132,220 | 133,166 |
Three Months Ended | |||||||||||
December 24, 2023 |
September 24, 2023 |
||||||||||
U.S. GAAP net income | $ | 954,266 | $ | 887,398 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 2,631 | 3,149 | |||||||||
Elective deferred compensation ("EDC") related liability valuation increase (decrease) - cost of goods sold | 6,492 | (591) | |||||||||
Restructuring charges, net - cost of goods sold | 14,957 | 7,940 | |||||||||
Transformational costs - cost of goods sold | 8,853 | 4,269 | |||||||||
EDC related liability valuation increase (decrease) - research and development | 11,685 | (1,064) | |||||||||
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative | 770 | 1,186 | |||||||||
EDC related liability valuation increase (decrease) - selling, general and administrative | 7,790 | (709) | |||||||||
Transformational costs - selling, general and administrative | 16,051 | 8,020 | |||||||||
Restructuring charges, net - operating expenses | 1,688 | 2,021 | |||||||||
Amortization of note discounts - other income (expense), net | 746 | 1,017 | |||||||||
(Gain) Loss on EDC related asset - other income (expense), net | (25,530) | 2,901 | |||||||||
Net income tax benefit on non-GAAP items | (6,114) | (3,098) | |||||||||
Non-GAAP net income | $ | 994,285 | $ | 912,439 | |||||||
Non-GAAP net income per diluted share | $ | 7.52 | $ | 6.85 | |||||||
U.S. GAAP net income per diluted share | $ | 7.22 | $ | 6.66 | |||||||
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation | 132,220 | 133,166 | |||||||||
Three Months Ended | |||||||||||
December 24, 2023 |
September 24, 2023 |
||||||||||
U.S. GAAP gross margin | $ | 1,757,455 | $ | 1,654,702 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | 2,631 | 3,149 | |||||||||
EDC related liability valuation increase (decrease) | 6,492 | (591) | |||||||||
Restructuring charges, net | 14,957 | 7,940 | |||||||||
Transformational costs | 8,853 | 4,269 | |||||||||
Non-GAAP gross margin | $ | 1,790,388 | $ | 1,669,469 | |||||||
U.S. GAAP gross margin as a percentage of revenue | 46.8 | % | 47.5 | % | |||||||
Non-GAAP gross margin as a percentage of revenue | 47.6 | % | 47.9 | % | |||||||
U.S. GAAP operating expenses | $ | 700,243 | $ | 631,673 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | (770) | (1,186) | |||||||||
EDC related liability valuation (increase) decrease | (19,475) | 1,773 | |||||||||
Restructuring charges, net | (1,688) | (2,021) | |||||||||
Transformational costs | (16,051) | (8,020) | |||||||||
Non-GAAP operating expenses | $ | 662,259 | $ | 622,219 | |||||||
U.S. GAAP operating income | $ | 1,057,212 | $ | 1,023,029 | |||||||
Non-GAAP operating income | $ | 1,128,129 | $ | 1,047,250 | |||||||
U.S. GAAP operating income as percent of revenue | 28.1 | % | 29.4 | % | |||||||
Non-GAAP operating income as a percent of revenue | 30.0 | % | 30.1 | % |