Slide 1: Lam Research Corporation June Quarter 2018 Financial Results
Lam Research Corporation June Quarter 2018 Financial Results July 26, 2018 © 2018 Lam Research Corp. | 7.26.2018 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation and the accompanying discussion contain “forward-looking statements” under U.S. securities laws. Forward-looking statements include any statements that are not statements of historical fact. Examples of forward-looking state
Slide 3: Business Review and Industry Outlook
Business Review and Industry Outlook Martin Anstice Chief Executive Officer © 2018 Lam Research Corp. | 7.26.2018 3
Slide 4: June Quarter and FY'18 Performance
June Quarter and FY’18 Performance ► June quarter Milestone revenues of $3.1 billion and approximately $1 billion in operating income* ► Fiscal year $11.1 billion in revenues, $3.4 billion in operating income*, and $2.7 billion in cash from operations Strongest fiscal year in our history *Data a
Slide 5: Structurally Better Industry Today
Structurally Better Industry Today ► Customer spending indicates focus on their profitability and sustainability ► Diverse demand drivers propelled by the increasing role of data and silicon and higher aspirations by our customers ► Sustained opportunity for Lam driven by focus on technology and pro
Slide 6: Driving Sustainability through Our Multi-Product Capabilities
Driving Sustainability through Our Multi-Product Capabilities ► Installed base Installed-base revenues for the year to date exceeded overall installed base growth by a factor of 2x Productivity solutions and advanced services create value for customers ► SAM expansion focus Realizing multi-pat
Slide 7: 2018 Outlook
2018 Outlook ► Compelling long-term opportunity driven by data economy ► Rational, disciplined spending by our customers ► Expect a growth year for WFE in 2018 Unmatched outperformance opportunity for Lam to extend our leadership © 2018 Lam Research Corp. | 7.26.2018 7
Slide 8: June Quarter 2018 Financial Results and September Quarter 18 Outlook
June Quarter 2018 Financial Results and September Quarter 2018 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer © 2018 Lam Research Corp. | 7.26.2018 8
Slide 9: June Quarter and FY'18 Results
June Quarter and FY’18 Results ► QJun’18 above mid-point of guidance for all metrics ► Shipments, revenue, cash from operations, gross margin dollars*, operating income dollars*, and earnings per share* at record levels in FY’18 Shipments Revenue Cash from Ops $11.2 $11.1 $2.7 $ Billions $ Billions
Slide 10: June Quarter Shipments
June Quarter Shipments ► QJun’18 shipments of $3.028 billion ► System shipments segment mix: Jun’18 Mar’18 Logic/Other Logic/Other 7% 6% Foundry Foundry 10% 13% NVM Memory Memory DRAM NVM 55% 80% 84% DRAM 27% 57% 25% © 2018 Lam Research Corp. | 7.26.2018 10
Slide 11: June Quarter Financial Results
June Quarter Financial Results Jun’18 Mar’18 Revenue $3,126M $2,892M Non-GAAP Gross Margin* 48.0% 46.8% Non-GAAP Operating Expenses* $507M $486M Non-GAAP Operating Income* $994M $867M Non-GAAP Operating Margin* 31.8% 30.0% Non-GAAP Other Income/(Expense)* $4.8M ($6.3M) Non-GAAP Tax Rate* 6.7% 1% GAA
Slide 12: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Jun’18 Mar’18 Total Consolidated Gross Cash Balance $5,206M $6,742M Account Receivables, Net $2,177M $2,083M DSO 63 Days 66 Days Inventory Turns 3.5 3.7 Deferred Revenue* $994M $1,114M Capital Expenditures $80M $49M Equity Compensation Expense $47M $41M Amorti
Slide 13: September 2018 Quarter Non-GAAP Guidance
September 2018 Quarter Non-GAAP Guidance Sep’18 Guidance Revenue $2.3 billion ± $150 million Non-GAAP Gross Margin 46% ± 1% Non-GAAP Operating Margin 26% ± 1% Non-GAAP Earnings per Share* $3.20 ± $0.20 *Based on a share count of 163 million shares. © 2018 Lam Research Corp. | 7.26.2018 13
Slide 14: Questions & Answers
Questions & Answers © 2018 Lam Research Corp. | 7.26.2018 14
Slide 15: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and U.S. GAAP number of dilutive shares to Non- GAAP number of dilutive shares (in thousands, except per share data) (unaudited) Three Months Ended June 24, March 25, 2018 2018 U.S. GAAP net income $ 1,021,146 $
Slide 16: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and U.S. GAAP number of dilutive shares to Non-GAAP number of dilutive shares (in thousands, except per share data) (unaudited) Twelve Months Ended June 24, 2018 June 25, 2017 U.S. GAAP net income $ 2,380,681 $ 1
Slide 17: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (unaudited) Three Months Ended June 24, March 25, December 24, September 24, 2018 2018 2017 2017 U.S. GAAP gross margin $ 1,47
Slide 18: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net (in thousands) (unaudited) Three Months Ended June 24, March 25, 2018 2018 U.S. GAAP Other expense, net $ 2,954 $ (55,810) Pre-tax non-GAAP items: Amortization of note discounts
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands) (unaudited) Three Months Ended June 24, March 25, 2018 2018 U.S. GAAP income before income taxes $ 958,149 $ 771,701 U.S. GAAP income tax benefit $ (62,997) $ (7,099) U.S. GAAP income tax
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation For the September 2018 quarter, Lam is providing the following guidance: U.S. GAAP Reconciling Items Non-GAAP Revenue $2.3 Billion +/- $150 Million — $2.3 Billion +/- $150 Million Gross margin 45.0% +/- 1% $ 22 Million 46.0% +/- 1% Operating margin 24.3% +/- 1% $ 38 Million
Slide 21: Appendix – Reconciliation of Deferred Revenue
Appendix – Reconciliation RECONCILIATION OF DEFERRED REVENUE (in millions) (unaudited) Three Months Ended June 24, March 25, 2018 2018 Beginning Balance $ 1,113.9 $ 1,114.3 Shipments 3,028.4 3,134.7 Revenue (3,125.9) (2,892.1) Net Change in Japan (1) (81.7) (236.6) Services & Other 59.0 (6.4) Ending
Slide 22: Innovative Technology, Trusted Productivity, Fast Solutions
VAA Innovative Technology Trusted Productivity Fast Solutions y NX