Slide 1: Lam Research Corporation September quarter 2023 financial results
Lam Research Corporation September quarter 2023 financial results October 18, 2023
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
$17.4B $1.7B ~17,200 REVENUE* R&D* EMPLOYEES 14 PRIMARY LOCATIONS + Fremont, CA + Livermore, CA + Sherwood, OR + Tualatin, OR + Springfield, OH + Yongin, Korea + Eaton, OH + Hsinchu City, Taiwan + Villach, Austria + Taoyuan City, Taiwan + Hwaseong-si, Korea + Bengaluru, India + Osan, Korea + Batu Ka
Slide 4: Business review & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 5: Strong September quarter performance
Strong September quarter performance Revenue of $3.48B and EPS of $6.85; profitability metrics above guided ranges for second quarter in a row Expect further revenue and EPS improvement in December quarter EPS = earnings per share LAM RESEARCH EPS calculated on a non-GAAP basis. Reconciliations of U
Slide 6: WFE outlook
WFE outlook CY 2023 WFE in the $80B range Changed from our prior view of mid-$70B based on updated checks on non-Lam related markets and restricted fab spending in China No impact to Lam revenue assumptions NAND: Customers reduced spending, lowered utilizations to drive faster path to supply/demand
Slide 7: Lam positioned to benefit from drivers of WFE demand
Lam positioned to benefit from drivers of WFE demand Expect benefits in both the short and long term When memory investments recover, higher utilization drives need for spares, services, and upgrades Etch and deposition are critical to enabling higher performance and increased device complexity Cust
Slide 8: Addressing the limitations of scaling
Addressing the limitations of scaling Backside power delivery Close to $1B incremental SAM opportunity for every 100K monthly wafer starts Power interconnects increasingly compete for space in BEOL and at the transistor level Technology enables separation of the signal and power delivery paths; new
Slide 9: CSBG delivering innovative solutions
CSBG delivering innovative solutions Expansion of our Equipment Intelligence® offerings • First big data application of high-resolution optical emission spectroscopy • Complexity in collecting and interpreting plasma spectra across large tool fleet • Allows customers to resolve performance issues Co
Slide 10: Investing to capitalize on long-term opportunities
Investing to capitalize on long-term opportunities Tremendous vectors of growth ahead for the semiconductor industry and for Lam + Scaling and complexity challenges are driving inflections toward 3D architectures leading to greater etch and deposition intensity + Lam is committed to making strategic
Slide 11: September quarter 2023 financial results & December quarter 2023 outlook
September quarter 2023 financial results & December quarter 2023 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: September quarter highlights
September quarter highlights QSEP'23 REVENUE $3.48B QJun'23 revenue: $3.21B QSep’22 revenue: $5.07B QSEP'23 EARNINGS PER SHARE* $6.85 QJun'23 earnings per share*: $5.98 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
Slide 13: September quarter revenue mix
September quarter revenue mix DRAM segment growth; increase in China revenue concentration SYSTEM REVENUE SEGMENTS* REVENUE BY REGION Southeast Asia NVM Europe 5% 15% 7% Logic/other 26% Memory 38% Taiwan 7% US 8% China 48% DRAM 23% Japan 9% Foundry Korea 36% 16% NVM = non-volatile memory LAM RESEARC
Slide 14: Customer Support Business Group
Customer Support Business Group QSEP'23 CSBG REVENUE $1.43B QJun'23 CSBG revenue: $1.50B QSep'22 CSBG revenue: $1.89B LAM RESEARCH
Slide 15: September quarter financial results
September quarter financial results QSEP'23 QJUN'23 Revenue $3,482M $3,207M Non-GAAP Gross Margin* 47.9% 45.7% Non-GAAP Operating Expenses* $622M $590M Non-GAAP Operating Income* $1,047M $875M Non-GAAP Operating Income as a percentage of Revenue* 30.1% 27.3% Non-GAAP Other Income (Expense), Net* $7M
Slide 16: Key balance sheet and financial metrics
Key balance sheet and financial metrics QSEP'23 QJUN'23 Total Consolidated Gross Cash Balance $5,157M $5,625M Account Receivables, Net $2,811M $2,823M Days Sales Outstanding 73 Days 80 Days Inventories $4,748M $4,816M Inventory Turns 1.5 1.5 Deferred Revenue* $1,690M $1,838M Capital Expenditures $77
Slide 17: December 2023 quarter guidance
$3.7B +/- $300M Revenue 47.0% +/- 1% December 2023 Non-GAAP gross margin quarter guidance 29.5% +/- 1% Non-GAAP operating margin $7.00 +/- $0.75 Non-GAAP earnings per share* A reconciliation of U.S. GAAP projected results can be found at the end of this presentation. LAM RESEARCH *Based on a diluted
Slide 18: Q&A
Q&A LAM RESEARCH
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 September 24, June 25, 2023 2023 U.S. GAAP net income $ 887,398 $ 802,537 Pre-tax non-GAAP items: Amortization related to intangible assets acq
Slide 20: 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 September 24, June 25, 2023 2023 U.S. GAAP gross margin $ 1,
Slide 21: 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 September 24, June 25, 2023 2023 U.S. GAAP Other income (expense), net $ 2,601 $ 9,010 Pre-tax non-GAAP items: Amortization of note
Slide 22: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Three Months Ended September 24, June 25, March 26, 2023 2023 2023 U.S. GAAP net cash provided by operating activities $ 951,163 $ 1,122,725 $ 1,726,438 U.S. GAAP cash used for capital expenditures and intangible ass
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 September 24, June 25, 2023 2023 U.S. GAAP income before income taxes $ 1,025,630 $ 863,615 U.S. GAAP income tax expense $ 138,232 $ 61,
Slide 24: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended December 24, 2023 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.7 Billion +/- $300 Million — $3.7 Billion +/- $300 Million Gross margin as a percentage of revenue 46.5% +/- 1% $ 17 Million 47.0% +/- 1%
Slide 25: Slide 25