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 23, 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 | ||||||||||||||||||||
September 2024 | June 2024 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 4,167,976 | $ | 3,871,507 | + 8% | |||||||||||||||
Gross margin as percentage of revenue | 48.0 | % | 47.5 | % | + 50 bps | |||||||||||||||
Operating income as percentage of revenue | 30.3 | % | 29.1 | % | + 120 bps | |||||||||||||||
Diluted EPS pre-split | $ | 8.56 | $ | 7.78 | + 10% | |||||||||||||||
Diluted EPS post-split | $ | 0.86 | $ | 0.78 | + 10% | |||||||||||||||
Non-GAAP | ||||||||||||||||||||
September 2024 | June 2024 | Change Q/Q | ||||||||||||||||||
Revenue | $ | 4,167,976 | $ | 3,871,507 | + 8% | |||||||||||||||
Gross margin as percentage of revenue | 48.2 | % | 48.5 | % | - 30 bps | |||||||||||||||
Operating income as percentage of revenue | 30.9 | % | 30.7 | % | + 20 bps | |||||||||||||||
Diluted EPS pre-split | $ | 8.60 | $ | 8.14 | + 6% | |||||||||||||||
Diluted EPS post-split | $ | 0.86 | $ | 0.81 | + 6% |
Region | Revenue | ||||
China | 37% | ||||
Korea | 18% | ||||
Taiwan | 15% | ||||
United States | 12% | ||||
Japan | 7% | ||||
Southeast Asia | 6% | ||||
Europe | 5% |
Three Months Ended | |||||||||||||||||
September 29, 2024 |
June 30, 2024 |
September 24, 2023 |
|||||||||||||||
(In thousands) | |||||||||||||||||
Systems revenue | $ | 2,392,730 | $ | 2,169,885 | $ | 2,056,655 | |||||||||||
Customer support-related revenue and other | 1,775,246 | 1,701,622 | 1,425,407 | ||||||||||||||
$ | 4,167,976 | $ | 3,871,507 | $ | 3,482,062 | ||||||||||||
U.S. GAAP | Reconciling Items | Non-GAAP | ||||||||||||||||||||||||||||||
Revenue | $4.30 Billion | +/- | $300 Million | — | $4.30 Billion | +/- | $300 Million | |||||||||||||||||||||||||
Gross margin as a percentage of revenue | 46.9% | +/- | 1% | $ | 2.8 | Million | 47.0% | +/- | 1% | |||||||||||||||||||||||
Operating income as a percentage of revenue | 29.9% | +/- | 1% | $ | 3.4 | Million | 30.0% | +/- | 1% | |||||||||||||||||||||||
Net income per diluted share | $0.87 | +/- | $0.10 | $ | 3.9 | Million | $0.87 | +/- | $0.10 | |||||||||||||||||||||||
Diluted share count | 1.29 Billion | — | 1.29 Billion |
Three Months Ended | |||||||||||||||||
September 29, 2024 |
June 30, 2024 |
September 24, 2023 |
|||||||||||||||
Revenue | $ | 4,167,976 | $ | 3,871,507 | $ | 3,482,062 | |||||||||||
Cost of goods sold | 2,165,293 | 2,026,133 | 1,819,420 | ||||||||||||||
Restructuring charges, net - cost of goods sold | — | 5,276 | 7,940 | ||||||||||||||
Total cost of goods sold | 2,165,293 | 2,031,409 | 1,827,360 | ||||||||||||||
Gross margin | 2,002,683 | 1,840,098 | 1,654,702 | ||||||||||||||
Gross margin as a percent of revenue | 48.0 | % | 47.5 | % | 47.5 | % | |||||||||||
Research and development | 495,358 | 497,829 | 422,629 | ||||||||||||||
Selling, general and administrative | 243,128 | 216,477 | 207,023 | ||||||||||||||
Restructuring charges, net - operating expenses | — | (768) | 2,021 | ||||||||||||||
Total operating expenses | 738,486 | 713,538 | 631,673 | ||||||||||||||
Operating income | 1,264,197 | 1,126,560 | 1,023,029 | ||||||||||||||
Operating income as a percent of revenue | 30.3 | % | 29.1 | % | 29.4 | % | |||||||||||
Other income (expense), net | 30,081 | 27,796 | 2,601 | ||||||||||||||
Income before income taxes | 1,294,278 | 1,154,356 | 1,025,630 | ||||||||||||||
Income tax expense | (177,834) | (134,074) | (138,232) | ||||||||||||||
Net income | $ | 1,116,444 | $ | 1,020,282 | $ | 887,398 | |||||||||||
Pre-split: | |||||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 8.59 | $ | 7.81 | $ | 6.69 | |||||||||||
Diluted | $ | 8.56 | $ | 7.78 | $ | 6.66 | |||||||||||
Number of shares used in per share calculations: | |||||||||||||||||
Basic | 129,924 | 130,633 | 132,584 | ||||||||||||||
Diluted | 130,407 | 131,112 | 133,166 | ||||||||||||||
Cash dividend declared per common share | $ | 2.30 | $ | 2.00 | $ | 2.00 | |||||||||||
Post-split: | |||||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.86 | $ | 0.78 | $ | 0.67 | |||||||||||
Diluted | $ | 0.86 | $ | 0.78 | $ | 0.67 | |||||||||||
Number of shares used in per share calculations: | |||||||||||||||||
Basic | 1,299,236 | 1,306,333 | 1,325,840 | ||||||||||||||
Diluted | 1,304,066 | 1,311,118 | 1,331,664 | ||||||||||||||
Cash dividend declared per common share | $ | 0.23 | $ | 0.20 | $ | 0.20 | |||||||||||
September 29, 2024 |
June 30, 2024 |
September 24, 2023 |
|||||||||||||||
(unaudited) | (1) | (unaudited) | |||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 6,067,471 | $ | 5,847,856 | $ | 5,126,150 | |||||||||||
Accounts receivable, net | 2,937,217 | 2,519,250 | 2,810,953 | ||||||||||||||
Inventories | 4,209,878 | 4,217,924 | 4,747,781 | ||||||||||||||
Prepaid expenses and other current assets | 277,802 | 298,190 | 308,678 | ||||||||||||||
Total current assets | 13,492,368 | 12,883,220 | 12,993,562 | ||||||||||||||
Property and equipment, net | 2,214,269 | 2,154,518 | 2,110,511 | ||||||||||||||
Goodwill and intangible assets | 1,758,344 | 1,765,073 | 1,784,000 | ||||||||||||||
Other assets | 2,067,508 | 1,941,917 | 1,650,384 | ||||||||||||||
Total assets | $ | 19,532,489 | $ | 18,744,728 | $ | 18,538,457 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current portion of long-term debt and finance lease obligations | $ | 504,682 | $ | 504,814 | $ | 3,861 | |||||||||||
Other current liabilities | 4,837,986 | 3,833,624 | 4,243,316 | ||||||||||||||
Total current liabilities | 5,342,668 | 4,338,438 | 4,247,177 | ||||||||||||||
Long-term debt and finance lease obligations | 4,479,087 | 4,478,520 | 4,980,460 | ||||||||||||||
Income taxes payable | 664,717 | 813,304 | 780,511 | ||||||||||||||
Other long-term liabilities | 574,126 | 575,012 | 482,979 | ||||||||||||||
Total liabilities | 11,060,598 | 10,205,274 | 10,491,127 | ||||||||||||||
Stockholders’ equity (2) | 8,471,891 | 8,539,454 | 8,047,330 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 19,532,489 | $ | 18,744,728 | $ | 18,538,457 | |||||||||||
(1) | Derived from audited financial statements. | ||||
(2) | Common shares issued and outstanding were 1,291,958 as of September 29, 2024, 1,303,769 as of June 30, 2024, and 1,320,721 as of September 24, 2023. |
Three Months Ended | |||||||||||||||||
September 29, 2024 |
June 30, 2024 |
September 24, 2023 |
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 1,116,444 | $ | 1,020,282 | $ | 887,398 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 94,295 | 88,357 | 90,479 | ||||||||||||||
Deferred income taxes | (108,722) | (61,375) | (24,238) | ||||||||||||||
Equity-based compensation expense | 80,011 | 79,092 | 67,211 | ||||||||||||||
Other, net | (457) | (3,999) | (150) | ||||||||||||||
Changes in operating assets and liabilities | 386,900 | (259,927) | (69,537) | ||||||||||||||
Net cash provided by operating activities | 1,568,471 | 862,430 | 951,163 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Capital expenditures and intangible assets | (110,588) | (100,748) | (76,992) | ||||||||||||||
Net maturities and sales of available-for-sale securities | — | — | 7,275 | ||||||||||||||
Other, net | 37 | (865) | (4,966) | ||||||||||||||
Net cash used for investing activities | (110,551) | (101,613) | (74,683) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Principal payments on debt, including finance lease obligations | (934) | (949) | (253,109) | ||||||||||||||
Treasury stock purchases | (997,035) | (373,550) | (843,238) | ||||||||||||||
Dividends paid | (260,985) | (261,462) | (230,332) | ||||||||||||||
Reissuance of treasury stock related to employee stock purchase plan | — | 66,885 | — | ||||||||||||||
Proceeds from issuance of common stock, net issuance costs | (43) | 2,796 | 2,818 | ||||||||||||||
Other, net | (324) | (7,871) | (2,151) | ||||||||||||||
Net cash used for financing activities | (1,259,321) | (574,151) | (1,326,012) | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 22,682 | (9,616) | (11,031) | ||||||||||||||
Net change in cash, cash equivalents, and restricted cash | 221,281 | 177,050 | (460,563) | ||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period (1) |
5,850,803 | 5,673,753 | 5,587,372 | ||||||||||||||
Cash, cash equivalents, and restricted cash at end of period (1) |
$ | 6,072,084 | $ | 5,850,803 | $ | 5,126,809 | |||||||||||
(1) | Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets |
Three Months Ended | |||||||||||
September 29, 2024 |
June 30, 2024 |
||||||||||
Revenue | $ | 4,167,976 | $ | 3,871,507 | |||||||
Gross margin | $ | 2,009,022 | $ | 1,876,345 | |||||||
Gross margin as percentage of revenue | 48.2 | % | 48.5 | % | |||||||
Operating expenses | $ | 722,148 | $ | 689,133 | |||||||
Operating income | $ | 1,286,874 | $ | 1,187,212 | |||||||
Operating income as a percentage of revenue | 30.9 | % | 30.7 | % | |||||||
Net income | $ | 1,121,507 | $ | 1,066,890 | |||||||
Pre-split: | |||||||||||
Net income per diluted share | $ | 8.60 | $ | 8.14 | |||||||
Shares used in per share calculation - diluted | 130,407 | 131,112 | |||||||||
Post-split: | |||||||||||
Net income per diluted share | $ | 0.86 | $ | 0.81 | |||||||
Shares used in per share calculation - diluted | 1,304,066 | 1,311,118 |
Three Months Ended | |||||||||||
September 29, 2024 |
June 30, 2024 |
||||||||||
U.S. GAAP net income | $ | 1,116,444 | $ | 1,020,282 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 3,076 | 3,076 | |||||||||
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold | 3,263 | 2,488 | |||||||||
Restructuring charges, net - cost of goods sold | — | 5,276 | |||||||||
Transformational costs - cost of goods sold | — | 25,407 | |||||||||
EDC related liability valuation increase - research and development | 8,136 | 4,479 | |||||||||
Transformational costs - Research and development | — | 8,469 | |||||||||
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative | 692 | 770 | |||||||||
EDC related liability valuation increase - selling, general and administrative | 7,510 | 2,986 | |||||||||
Transformational costs - selling, general and administrative | — | 8,469 | |||||||||
Restructuring charges, net - operating expenses | — | (768) | |||||||||
Amortization of note discounts - other income (expense), net | 765 | 759 | |||||||||
Gain on EDC related asset - other income (expense), net | (17,420) | (9,643) | |||||||||
Net income tax benefit on non-GAAP items | (959) | (5,160) | |||||||||
Non-GAAP net income | $ | 1,121,507 | $ | 1,066,890 | |||||||
Pre-split | |||||||||||
Non-GAAP net income per diluted share | $ | 8.60 | $ | 8.14 | |||||||
U.S. GAAP net income per diluted share | $ | 8.56 | $ | 7.78 | |||||||
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation | 130,407 | 131,112 | |||||||||
Post-split | |||||||||||
Non-GAAP net income per diluted share | $ | 0.86 | $ | 0.81 | |||||||
U.S. GAAP net income per diluted share | $ | 0.86 | $ | 0.78 | |||||||
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation | 1,304,066 | 1,311,118 | |||||||||
Three Months Ended | |||||||||||
September 29, 2024 |
June 30, 2024 |
||||||||||
U.S. GAAP gross margin | $ | 2,002,683 | $ | 1,840,098 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | 3,076 | 3,076 | |||||||||
EDC related liability valuation increase | 3,263 | 2,488 | |||||||||
Restructuring charges, net | — | 5,276 | |||||||||
Transformational costs | — | 25,407 | |||||||||
Non-GAAP gross margin | $ | 2,009,022 | $ | 1,876,345 | |||||||
U.S. GAAP gross margin as a percentage of revenue | 48.0 | % | 47.5 | % | |||||||
Non-GAAP gross margin as a percentage of revenue | 48.2 | % | 48.5 | % | |||||||
U.S. GAAP operating expenses | $ | 738,486 | $ | 713,538 | |||||||
Pre-tax non-GAAP items: | |||||||||||
Amortization related to intangible assets acquired through certain business combinations | (692) | (770) | |||||||||
EDC related liability valuation increase | (15,646) | (7,465) | |||||||||
Restructuring charges, net | — | 768 | |||||||||
Transformational costs | — | (16,938) | |||||||||
Non-GAAP operating expenses | $ | 722,148 | $ | 689,133 | |||||||
U.S. GAAP operating income | $ | 1,264,197 | $ | 1,126,560 | |||||||
Non-GAAP operating income | $ | 1,286,874 | $ | 1,187,212 | |||||||
U.S. GAAP operating income as percent of revenue | 30.3 | % | 29.1 | % | |||||||
Non-GAAP operating income as a percent of revenue | 30.9 | % | 30.7 | % |