Slide 1: September Quarter 2016 Financial Results
Lam Research Corporation September Quarter 2016 Financial Results October 19, 2016 © Lam Research Corp. | 10.19.2016 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 President & Chief Executive Officer © Lam Research Corp. | 10.19.2016 3
Slide 4: September Quarter Headlines and Outlook
September Quarter Headlines and Outlook Demonstrating operational execution and company scaling ► World-class performance from our supply chain, factories, and field service teams — New record for shipments in the September quarter — Record high foundry shipments in the September quarter — Gearing u
Slide 5: 3D Architectures Critical for Memory and Logic Devices
3D Architectures Critical for Memory and Logic Devices Strengthening our strategic relevance ► Driving innovations to enable advanced transistors and interconnect in foundry/logic is a critical priority for Lam ► Rapid adoption of 3D NAND demonstrates its importance to performance scaling in consume
Slide 6: Extending Leadership Through Competitive Differentiation
Extending Leadership Through Competitive Differentiation Five consecutive years of Lam SAM outperforming WFE ► Kiyo® with Hydra®: the most technically advanced, production-proven conductor etch performance in the industry ► Flex with Atomic Level Etching: atomic-level control over variability for di
Slide 7: Industry Outlook
Industry Outlook Memory Foundry & Logic NAND WFE on track for 40% Foundry WFE up >20% year growth year over year; DRAM over year in 2016 WFE down ~40% year over year in 2016 Customer focus on additional qualifications and PTOR 3D NAND shipped capacity of selections for 10 nm and 7 nm ~425k W
Slide 8: September Quarter 2016 Financial Results and December Quarter 2016 Outlook
September Quarter 2016 Financial Results and December Quarter 2016 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer © Lam Research Corp. | 10.19.2016 8
Slide 9: September Quarter Results
September Quarter Results Solid execution and record results ► Shipments, revenue, net income*, and cash from operations* at all-time highs in QSep’16 Shipments Revenue Cash from Operations* $473 $1.7 $1.6 $424 $1.6 $1.5 $ Millions $ Billions $ Billions QJun'16 QSep'16 QJun'16 QSep'16 QJun'16 QSep'1
Slide 10: September Quarter Shipments
September Quarter Shipments QSep’16 shipments of $1.708 billion ► 8% increase compared to June quarter ► System shipments reflect larger mix of foundry, logic Sep’16 Jun’16 Logic/Other Logic/Other 8% 7% Foundry 27% NVM Memory NVM Memory Foundry 36% 43% 56% 66% 51% DRAM DRAM 15% 13% © Lam Research Co
Slide 11: September Quarter Financial Results
September Quarter Financial Results Sep’16 Jun’16 Revenue $1,632M $1,546M Non-GAAP Gross Margin* 45.2% 46.6% Non-GAAP Operating Expenses* $372M $361M Non-GAAP Operating Income* $366M $359M Non-GAAP Operating Margin* 22.4% 23.2% Non-GAAP Other Income/(Expense)* $0.5M ($9.0M) Non-GAAP Tax Rate* 12% 10
Slide 12: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Sep’16 Jun’16 Total Consolidated Gross Cash Balance $7,470M $7,078M Account Receivables, Net $1,290M $1,262M DSO 72 Days 74 Days Inventory Turns 3.9 3.5 Deferred Revenue* $704M $566M Capital Expenditures $42M $52M Equity Compensation Expense $39M $39M Amortiza
Slide 13: December 2016 Quarter Non-GAAP Guidance
December 2016 Quarter Non-GAAP Guidance Dec’16 Guidance Shipments $1.850 billion ± $75 million Revenue $1.840 billion ± $75 million Non-GAAP Gross Margin 46.0% ± 1% Non-GAAP Operating Margin 25.0% ± 1% Non-GAAP Earnings per Share* $2.18 ± $0.10 *Based on a share count of ~179 million shares. © Lam R
Slide 14: Questions & Answers
Questions & Answers © Lam Research Corp. | 10.19.2016 14
Slide 15: Appendix – Reconciliation
Appendix – Reconciliation © Lam Research Corp. | 10.19.2016 15
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) © Lam Research Corp. | 10.19.2016 16
Slide 17: Appendix – Reconciliation
Appendix – Reconciliation © Lam Research Corp. | 10.19.2016 17
Slide 18: Appendix – Reconciliation
Appendix – Reconciliation © Lam Research Corp. | 10.19.2016 18
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the December 2016 quarter (unaudited) Reconciling U.S. GAAP Items Non-GAAP Shipments $1.85 Billion +/- $75 Million — $1.85 Billion +/- $75 Million Revenue $1.84 Billion +/- $75 Million — $1.84 Billion +/- $75 Million Gros
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation © Lam Research Corp. | 10.19.2016 20
Slide 21: VAA
VAA INNOVATIVE TECHNOLOGY TRUSTED PRODUCTIVITY FAST SOLUTIONS Alam .