Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q2 2021 Earnings Presentation
25 slides from Lam Research's earnings presentation, Jul 28, 2021
Slide 1: June Quarter 2021 Financial Results
Lam Research Corporation June Quarter 2021 Financial Results July 28, 2021 © 2021 Lam Research Corp. | 07/28/2021 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 TIM ARCHER PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 4: Record June Quarter & Fiscal 2021 Performance
Record June Quarter & Fiscal 2021 Performance June quarter records: Strong execution Best FY in Lam Revenue, Cash Flow across systems and history: >45% revenue from Operations and customer support growth; >70% EPS EPS businesses growth EPS = earnings per share EPS calculated on a non-GAAP basis. Rec
Slide 5: WFE Spending Remains Strong
WFE Spending Remains Strong Calendar year 2021 WFE expected to trend above $80 billion WFE spending as a percentage of semiconductor industry operating profit within historical ranges Strength across device segments (NAND, DRAM and Foundry/Logic) in calendar 2021 Critical technology transformations
Slide 6: Device & Manufacturing Complexity Driving Lam Opportunity
Device & Manufacturing Complexity Driving Lam Opportunity Secured tool of record position at all 3D Stacking NAND manufacturers for critical deposition application Delivered novel selective etch, strip and Surface surface treatment solutions to establish Conditioning key etch win in Foundry/Logic se
Slide 7: Advancing Ecosystem Collaboration to Solve Challenges & Meet Demand
Advancing Ecosystem Collaboration to Solve Challenges & Meet Demand Need for closer partnerships to meet device performance and cost roadmaps Expansion of R&D investments closer to customers Added manufacturing capacity with first modules shipped from Malaysia to support continuing growth ESG – Envi
Slide 8: Customer Support Business Group Momentum Continues
Customer Support Business Group Momentum Continues June quarter revenue growth again outpaced growth in chamber count Record performance across services, upgrades, Reliant Major spares contract entered with key customer enabling stream of revenue for extended period Delivering world class support of
Slide 9: ESG – Critical Element of Lam's Operations
ESG – Critical Element of Lam’s Operations Setting new long-term Delivering more Supporting communities, objectives: 100% sustainable solutions to keeping employees safe, renewable energy by customers through and advancing inclusion 2030 and carbon net product innovations & and diversity goals zero
Slide 10: Lam Is Exceptionally Well-Positioned to Outperform
Lam Is Exceptionally Well-Positioned to Outperform Outstanding June quarter and 2021 fiscal year Healthy multi-year WFE spending Rising device complexity and transitions to 3D drive growth for Lam © 2021 Lam Research Corp. | 07/28/2021 10
Slide 11: June Quarter 2021 Financial Results and September Quarter 21 Outlook
June Quarter 2021 Financial Results and September Quarter 2021 Outlook DOUG BETTINGER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 12: June Quarter Highlights
June Quarter Highlights Q Jun'21 Revenue $4.15B Q Mar'21 Revenue - $3.85B Q Jun'21 Earnings per $8.09 Share* Q Mar'21 EPS* - $7.49 *Data are presented on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. © 2021 Lam Research Corp.
Slide 13: June Quarter Revenue Mix
June Quarter Revenue Mix Record level of foundry and NAND revenue dollars System Revenue Segments* Revenue by Region Revenue Logic/Other SEA Europe United States Revenue Memory 59% NVM = Non-Volatile Memory *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean,
Slide 14: Customer Support Business Group (CSBG)
Customer Support Business Group (CSBG) Q Jun'21 CSBG $1.38B Revenue Q Mar'21 CSBG Revenue - $1.30B © 2021 Lam Research Corp. | 07/28/2021 14
Slide 15: June Quarter Financial Results
June Quarter Financial Results Q Jun'21 Q Mar'21 Revenue $4,145M $3,848M Non-GAAP Gross Margin* 46.5% 46.3% Non-GAAP Operating Expenses* $574M $567M Non-GAAP Operating Income* $1,353M $1,217M Non-GAAP Operating Income as a percentage of Revenue* 32.6% 31.6% Non-GAAP Other Expense, Net* $23M $42M U.S
Slide 16: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Jun'21 Q Mar'21 Total Consolidated Gross Cash Balance $5,982M $6,043M Account Receivables, Net $3,026M $2,809M DSO 66 Days 66 Days Inventory Turns 3.3 3.2 Deferred Revenue* $1,119M $817M Capital Expenditures $105M $90M Equity Compensation Expense $56M $56M A
Slide 17: September 2021 Quarter Guidance
September 2021 Quarter Guidance $4.3B +/- $250M 46.0% +/- 1% Non-GAAP Revenue Gross Margin 32.0% +/- 1% $8.10 +/- $0.50 Non-GAAP Non-GAAP Operating Margin Earnings per Share* A reconciliation of U.S. GAAP projected results to non-GAAP projected results can be found at the end of this presentation *B
Slide 18: Questions & Answers
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Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Three Months Ended June 27, March 28, 2021 2021 U.S. GAAP net income $ 1,144,657 $ 1,071,121 Pre-tax non-GAAP items: Amortization related to intangible assets acq
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Twelve Months Ended June 27, June 28, June 28, 2021 2020 2020 (As originally (As adjusted for disclosed) comparability)* U.S. GAAP net income $ 3,908,458 $ 2,251,
Slide 21: 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 (in thousands, except percentages) (unaudited) Three Months Ended June 27, March 28, 2021 2021 U.S. GAAP gross margin $ 1,915,
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other Expense, Net to Non-GAAP Other Expense, Net (in thousands) (unaudited) Three Months Ended June 27, March 28, 2021 2021 U.S. GAAP Other expense, net $ (7,166) $ (35,320) Pre-tax non-GAAP items: Amortization of note discounts 923 998 Gain on
Slide 23: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands, except percentages) (unaudited) Three Months Ended June 27, March 28, 2021 2021 U.S. GAAP income before income taxes $ 1,308,761 $ 1,159,988 U.S. GAAP income tax expense $ 164,104 $ 88,86
Slide 24: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended September 26, 2021 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.3 Billion +/- $250 Million — $4.3 Billion +/- $250 Million Gross margin as a percentage of revenue 46.0% +/- 1% $ 1 Million 46.0% +/- 1%
Slide 25: VAA
VAA Innovative Technology Trusted Productivity Fast Solutions a Wea