Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q4 FY2022 Earnings Presentation
28 slides from Lam Research's earnings presentation, Jan 26, 2022
Slide 1: Lam Research Corporation June quarter 2022 financial results
Lam Research Corporation June quarter 2022 financial results July 27, 2022
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: A global leader in wafer fabrication equipment and services since 1980
$17.2B $1.60B ~17,700 REVENUE R&D* EMPLOYEES 10 PRIMARY LOCATIONS + Fremont, CA + Livermore, CA + Sherwood, OR + Tualatin, OR + Springfield, OH + Eaton, OH + Villach, Austria + Gyeonggi-do, Korea + Taoyuan City, Taiwan + Batu Kawan, Malaysia A global leader in wafer fabrication equipment AWARDS AND
Slide 4: Business review & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 5: June quarter takeaways
June quarter takeaways Record revenue and Strong execution and September quarter guidance EPS well ahead of supply chain actions reflects improvement, guidance ranges driving improvement supply constraints continue EPS = earnings per share LAM RESEARCH EPS calculated on a non-GAAP basis. Reconciliat
Slide 6: WFE outlook
WFE outlook Expect CY 2022 in low to mid $90B range, impacted by constrained supply chain environment Semiconductor demand robust with some macro-driven weakness in consumer-focused markets Strong Foundry-Logic spending outgrowing both DRAM and NAND investments Strong WFE levels expected to sustain
Slide 7: Lam has strengthened its business
Expanded capabilities and resources Globally diverse manufacturing and operational infrastructure Lam has strengthened Stronger and deeper customer its business collaborations Moving innovation closer to our customers foundation through worldwide technology centers Revolutionized product platform Sy
Slide 8: New opportunities in advanced packaging
New opportunities in advanced packaging Kiyo® plasma etch products with Hydra® have proven track record in delivering productivity and uniformity requirements Multiple new etch tool of record positions at leading Foundry-Logic customer leveraging expertise in high volume manufacturing Growing opport
Slide 9: 2021 Environmental, Social, and Governance Report
2021 Environmental, Social, and Governance Report + Released 2021 ESG Report in late June + Focus on integration of ESG throughout our operations + Lam is one of the first companies in the semiconductor industry to announce a goal for net zero emissions by 2050 + Progressing on several important are
Slide 10: Well-positioned to benefit from industry secular drivers
Well-positioned to benefit from industry secular drivers Solid business foundation Commitment to Large and growing Differentiated ecosystem-wide installed base product portfolio collaboration and success LAM RESEARCH
Slide 11: June quarter 2022 financial results & September quarter 2022 outlook
June quarter 2022 financial results & September quarter 2022 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: Fiscal year highlights
Fiscal year highlights FY 2022 REVENUE $17.2B FY 2021 revenue: $14.6B FY 2022 EARNINGS PER SHARE* $33.11 FY 2021 EPS*: $27.25 LAM RESEARCH *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.
Slide 13: June quarter highlights
June quarter highlights QJUN'22 REVENUE $4.64B QMar'22 revenue: $4.06B QJUN'22 DEFERRED REVENUE* $2.20B QMar'22 deferred revenue*: $2.07B *Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. LAM RESEARCH Estimate
Slide 14: June quarter revenue mix
June quarter revenue mix Record level of Logic/Other revenue and concentration System revenue segments* Revenue by region Memory 54% NVM = Non-Volatile Memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant ® product line
Slide 15: Customer Support Business Group
Customer Support Business Group QJUN'22 CSBG REVENUE $1.63B QMar'22 CSBG revenue: $1.41B QJun'21 CSBG revenue: $1.38B LAM RESEARCH
Slide 16: June quarter financial results
June quarter financial results QJUN'22 QMAR'22 Revenue $4,636M $4,060M Non-GAAP Gross Margin* 45.2% 44.7% Non-GAAP Operating Expenses* $635M $621M Non-GAAP Operating Income* $1,459M $1,194M Non-GAAP Operating Income as a percentage of Revenue* 31.5% 29.4% Non-GAAP Other Expense, Net* $87M $44M U.S.
Slide 17: Solid execution on capital return
Solid execution on capital return Returned ~115% or over $20 billion of Free Cash Flows since calendar year 2012 Share repurchase $M Dividends per share* $3,708 $1.45 $1.35 $3,034 $3,042 $3,004 $1.19 $1.11 $0.80 $1,901 $1,386 $1,371 $0.45 $0.30 $0.24 $427 $0.18 $350 $259 $65 CY'12 CY'13 CY'14 CY'15
Slide 18: Key balance sheet and financial metrics
Key balance sheet and financial metrics QJUN'22 QMAR'22 Total Consolidated Gross Cash Balance $3,909M $4,606M Account Receivables, Net $4,314M $3,702M DSO 85 Days 83 Days Inventories $3,966M $3,479M Inventory Turns 2.6 2.6 Deferred Revenue* $2,198M $2,069M Capital Expenditures $126M $145M Equity Com
Slide 19: September 2022 quarter guidance
$4.9B +/- $300M Revenue 45.0% +/- 1% September 2022 Non-GAAP gross margin quarter guidance 31.5% +/- 1% Non-GAAP operating margin $9.50 +/- $0.75 Non-GAAP 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 LA
Slide 20: Q&A
Q&A LAM RESEARCH
Slide 21: 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 26, March 27, 2022 2022 U.S. GAAP net income $ 1,208,934 $ 1,021,778 Pre-tax non-GAAP items: Amortization related to intangible assets acq
Slide 22: 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 26, June 27, 2022 2021 U.S. GAAP net income $ 4,605,286 $ 3,908,458 Pre-tax non-GAAP items: Amortization related to intangible assets acq
Slide 23: 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 26, March 27, 2022 2022 U.S. GAAP gross margin $ 2,100,
Slide 24: 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 26, March 27, 2022 2022 U.S. GAAP Other expense, net $ (120,448) $ (57,402) Pre-tax non-GAAP items: Amortization of note discounts 701 695 Loss o
Slide 25: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Six Months Ended Twelve Months Ended June 26, December 26, December 27, December 29, December 23, December 24, 2022 2021 2020 2019 2018 2017 U.S. GAAP net cash provided by operating activities $ 1,201,644 $ 4,499,045
Slide 26: 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 26, March 27, 2022 2022 U.S. GAAP income before income taxes $ 1,358,905 $ 1,134,695 U.S. GAAP income tax expense $ 149,971 $ 112,9
Slide 27: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the Quarter Ended September 25, 2022 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.9 Billion +/- $300 Million — $4.9 Billion +/- $300 Million Gross margin as a percentage of revenue 45.0% +/- 1% $ 1 Million 45.0% +/- 1%
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