Lam Research Corporation Reports Financial Results for the Quarter Ended September 29, 2024
Lam Research reported strong financial results for Q3 2024, with revenue reaching $4.17 billion, up 8% from the previous quarter. The company achieved a U.S. GAAP gross margin of 48.0% and diluted EPS of $0.86. Operating income as a percentage of revenue improved to 30.3%. The company's cash position strengthened to $6.1 billion, up from $5.9 billion in the previous quarter. For Q4 2024, Lam projects revenue of $4.30 billion (±$300 million) with an expected gross margin of 46.9%. China represented the largest revenue share at 37%, followed by Korea at 18% and Taiwan at 15%.
Lam Research ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con ricavi che hanno raggiunto 4,17 miliardi di dollari, in aumento dell'8% rispetto al trimestre precedente. L'azienda ha ottenuto un margine lordo GAAP degli Stati Uniti del 48,0% e un utile per azione diluito di 0,86 dollari. Il reddito operativo come percentuale dei ricavi è migliorato al 30,3%. La posizione di cassa dell'azienda si è rafforzata a 6,1 miliardi di dollari, rispetto ai 5,9 miliardi di dollari del trimestre precedente. Per il quarto trimestre del 2024, Lam prevede ricavi di 4,30 miliardi di dollari (±300 milioni) con un margine lordo atteso del 46,9%. La Cina ha rappresentato la maggiore quota di ricavi con il 37%, seguita dalla Corea con il 18% e da Taiwan con il 15%.
Lam Research reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos alcanzando 4,17 mil millones de dólares, un aumento del 8% en comparación con el trimestre anterior. La empresa logró un margen bruto GAAP de EE.UU. del 48,0% y un EPS diluido de 0,86 dólares. Los ingresos operativos como porcentaje de los ingresos mejoraron al 30,3%. La posición de efectivo de la empresa se fortaleció a 6,1 mil millones de dólares, en comparación con los 5,9 mil millones de dólares del trimestre anterior. Para el cuarto trimestre de 2024, Lam proyecta ingresos de 4,30 mil millones de dólares (±300 millones) con un margen bruto esperado del 46,9%. China representó la mayor parte de los ingresos con un 37%, seguida de Corea con un 18% y Taiwán con un 15%.
Lam Research는 2024년 3분기에 강력한 재무 실적을 보고하며, 매출이 41.7억 달러에 달해 전 분기 대비 8% 증가했다고 발표했습니다. 이 회사는 미국 GAAP 기준으로 48.0%의 총 이익률과 희석 주당 이익(EPS) 0.86 달러를 기록했습니다. 매출에 대한 운영 이익 비율은 30.3%로 개선되었습니다. 회사의 현금 보유액은 61억 달러로 강화되어 전 분기의 59억 달러에서 증가했습니다. 2024년 4분기에는 Lam이 매출을 43억 달러(±3억 달러)로 예상하며, 기대되는 총 이익률은 46.9%입니다. 중국은 37%로 가장 큰 매출 점유율을 차지하며, 그 뒤를 이어 한국이 18%, 대만이 15%를 차지했습니다.
Lam Research a annoncé des résultats financiers robustes pour le troisième trimestre 2024, avec un chiffre d'affaires atteignant 4,17 milliards de dollars, en hausse de 8% par rapport au trimestre précédent. L'entreprise a obtenu une marge brute GAAP des États-Unis de 48,0% et un BPA dilué de 0,86 dollar. Le résultat d'exploitation en pourcentage du chiffre d'affaires s'est amélioré pour atteindre 30,3%. La position de trésorerie de l'entreprise s'est renforcée à 6,1 milliards de dollars, contre 5,9 milliards de dollars au trimestre précédent. Pour le quatrième trimestre 2024, Lam projette un chiffre d'affaires de 4,30 milliards de dollars (±300 millions) avec une marge brute attendue de 46,9%. La Chine a représenté la plus grande part de revenus avec 37%, suivie par la Corée à 18% et Taïwan à 15%.
Lam Research berichtete über starke Finanzergebnisse für das 3. Quartal 2024, mit einem Umsatz von 4,17 Milliarden Dollar, was einem Anstieg von 8% im Vergleich zum vorherigen Quartal entspricht. Das Unternehmen erzielte eine US-GAAP-Bruttomarge von 48,0% und einen verwässerten Gewinn pro Aktie von 0,86 Dollar. Das Betriebsergebnis als Prozentsatz des Umsatzes verbesserte sich auf 30,3%. Die liquide Mittelposition des Unternehmens stärkte sich auf 6,1 Milliarden Dollar, gegenüber 5,9 Milliarden Dollar im vorherigen Quartal. Für das 4. Quartal 2024 prognostiziert Lam einen Umsatz von 4,30 Milliarden Dollar (±300 Millionen) mit einer erwarteten Bruttomarge von 46,9%. China stellte den größten Umsatzanteil mit 37% dar, gefolgt von Korea mit 18% und Taiwan mit 15%.
- Revenue increased 8% quarter-over-quarter to $4.17 billion
- Operating income margin improved by 120 basis points to 30.3%
- Cash position increased to $6.1 billion from $5.9 billion
- Deferred revenue grew to $2.047 billion from $1.552 billion
- Non-GAAP gross margin declined 30 basis points to 48.2%
- Projected Q4 gross margin guidance shows decline to 46.9%
Insights
The Q3 2024 results demonstrate robust performance with
Geographic revenue distribution shows heavy exposure to China at
The significant growth in systems revenue to
The growing Japanese market presence, with
On May 21, 2024, the Company announced a ten-for-one stock split which was effective October 2, 2024. All references made to share or per share amounts in this press release have been adjusted to reflect the stock split, unless otherwise indicated.
Highlights for the September 2024 quarter were as follows:
- Revenue of
$4.17 billion U.S. GAAP gross margin of48.0% ,U.S. GAAP operating income as a percentage of revenue of30.3% , andU.S. GAAP diluted EPS of$0.86 - Non-GAAP gross margin of
48.2% , non-GAAP operating income as a percentage of revenue of30.9% , and non-GAAP diluted EPS of$0.86
Key Financial Data for the Quarters Ended September 29, 2024 and June 30, 2024 (in thousands, except per-share data, percentages, and basis points)
| ||||||
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 % | |||
For the September 2024 quarter, revenue was
Non-GAAP Financial Results
For the September 2024 quarter, non-GAAP gross margin was
"With continued strong execution, Lam delivered financial performance ahead of expectations," said Tim Archer, Lam Research's President and Chief Executive Officer. "Looking forward, etch and deposition are fundamental to enabling the next generation of semiconductors. Our investments in key technology inflections position us well to outperform WFE growth in 2025 and beyond."
Balance Sheet and Cash Flow Results
Cash, cash equivalents, and restricted cash balances increased to
Deferred revenue at the end of the September 2024 quarter increased to
Revenue
The geographic distribution of revenue during the September 2024 quarter is shown in the following table:
Region | Revenue |
37 % | |
18 % | |
15 % | |
12 % | |
7 % | |
6 % | |
5 % |
The following table presents revenue disaggregated between system and customer support-related revenue:
Three Months Ended | |||||
September 29, | June 30, | September 24, | |||
(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 | |||
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.
Outlook
For the quarter ended December 29, 2024, Lam is providing the following guidance:
Reconciling Items | Non-GAAP | |||||||||
Revenue | +/- | — | +/- | |||||||
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 | +/- | $ 3.9 | Million | +/- | ||||||
Diluted share count | 1.29 Billion | — | 1.29 Billion | |||||||
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.
- Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations,
$2.8 million - Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations,
$3.4 million - Net income per diluted share - amortization related to intangible assets acquired though business combinations,
$3.4 million $0.8 million $0.3 million $3.9 million
Use of Non-GAAP Financial Results
In addition to
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
Caution Regarding Forward-Looking Statements
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 operational execution; the technologies that will enable the next generation of semiconductors; the extent of our investments in product development and the relevance of those investments to key technology inflections; our competitive positioning; wafer fabrication equipment ("WFE") spending growth; and our positioning and prospects for performance relative to WFE growth. 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 may 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 30, 2024. 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
Consolidated Financial Tables Follow.
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data and percentages) (unaudited) | |||||
Three Months Ended | |||||
September 29, | June 30, | September 24, | |||
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 | ||
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
| |||||
September 29, | June 30, | September 24, | |||
(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. |
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) | |||||
Three Months Ended | |||||
September 29, | June 30, | September 24, | |||
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 |
Non-GAAP Financial Summary (in thousands, except percentages and per share data) (unaudited) | |||
Three Months Ended | |||
September 29, | June 30, | ||
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 | |
Reconciliation of (in thousands, except per share data) (unaudited)
| |||
Three Months Ended | |||
September 29, | June 30, | ||
$ 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 | |
$ 8.56 | $ 7.78 | ||
130,407 | 131,112 | ||
Post-split | |||
Non-GAAP net income per diluted share | $ 0.86 | $ 0.81 | |
$ 0.86 | $ 0.78 | ||
1,304,066 | 1,311,118 | ||
Reconciliation of (in thousands, except percentages) (unaudited) | |||
Three Months Ended | |||
September 29, | June 30, | ||
$ 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 | |
48.0 % | 47.5 % | ||
Non-GAAP gross margin as a percentage of revenue | 48.2 % | 48.5 % | |
$ 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 | |
$ 1,264,197 | $ 1,126,560 | ||
Non-GAAP operating income | $ 1,286,874 | $ 1,187,212 | |
30.3 % | 29.1 % | ||
Non-GAAP operating income as a percent of revenue | 30.9 % | 30.7 % | |
Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com
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SOURCE Lam Research Corporation
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