Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q4 2022 Earnings Presentation
26 slides from Lam Research's earnings presentation, Jul 27, 2022
Slide 1: Lam Research Corporation December quarter 2022 financial results
Lam Research Corporation December quarter 2022 financial results January 25, 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
$19.0B $1.7B ~19,200 REVENUE* R&D* EMPLOYEES A s of D ec em ber 25, 2022 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 fabri
Slide 4: Business review & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 5: December quarter & CY 2022 takeaways
Record revenues and EPS for December quarter and CY 2022; delivered $3.5B in CY 2022 cash from operations December quarter Executed well amid acute supply chain & CY 2022 constraints and inflationary pressures takeaways Substantially weaker demand environment in 2023 – making prudent changes to our
Slide 6: WFE outlook
WFE outlook CY 2022 in mid $90B range; CY 2023 expected to decline to mid $70B range Customers across all segments are exercising caution, especially those in the memory markets NAND and DRAM customers reducing capacity additions and lowering fab utilization to bring excess inventories into balance
Slide 7: Lam cost structure and efficiency initiatives to position for return of strong WFE demand
Lam cost structure and efficiency initiatives to position for return of strong WFE demand Reducing global employee base by 1,300 (~7%) in the March quarter Reducing overall spending but preserving critical R&D Transforming processes and systems to scale quickly and efficiently LAM RESEARCH
Slide 8: Positioning to capitalize on long-term demand trends
Positioning to capitalize on long-term demand trends Growing installed base units Diversifying global footprint places critical capabilities closer to ~84,000 customers, broadens access to world-class talent ~75,000 • State-of-the-art engineering center in India, technology development center in Kor
Slide 9: Lam executing well in a challenging environment
Emerging stronger Lam executing well in a challenging environment Making changes during market reset to accelerate strategic priorities Putting Lam in a stronger position to capitalize when industry spending growth returns LAM RESEARCH
Slide 10: December quarter 2022 financial results & March quarter 2023 outlook
December quarter 2022 financial results & March quarter 2023 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 11: Calendar year highlights
Calendar year highlights CY 2022 REVENUE $19.0B CY 2021 revenue: $16.5B CY 2022 EARNINGS PER SHARE* $37.31 CY 2021 EPS*: $32.46 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 12: December quarter highlights
December quarter highlights QDEC'22 REVENUE $5.28B QSep'22 revenue: $5.07B QDEC'22 DEFERRED REVENUE* $2.0B QSep'22 deferred revenue: $2.75B *Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. LAM RESEARCH Estima
Slide 13: December quarter revenue mix
December quarter revenue mix Record level of logic/other revenue dollars System revenue segments* REVENUE BY REGION Europe 6% Logic/other 19% US China 10% 24% NVM 39% SEA 10% Japan 11% Foundry Korea 31% 20% Memory 50% DRAM Taiwan 11% 19% NVM = non-volatile memory LAM RESEARCH *Systems revenue includ
Slide 14: Customer Support Business Group
Customer Support Business Group QDEC'22 CSBG REVENUE $1.73B QSep'22 CSBG revenue: $1.89B QDec'21 CSBG revenue: $1.49B LAM RESEARCH
Slide 15: December quarter financial results
December quarter financial results QDEC'22 QSEP'22 Revenue $5,278M $5,074M Non-GAAP Gross Margin* 45.1% 46.0% Non-GAAP Operating Expenses* $686M $647M Non-GAAP Operating Income* $1,695M $1,688M Non-GAAP Operating Income as a percentage of Revenue* 32.1% 33.3% Non-GAAP Other Expense, Net* $38M $30M U
Slide 16: Key balance sheet and financial metrics
Key balance sheet and financial metrics QDEC'22 QSEP'22 Total Consolidated Gross Cash Balance $4,839M $4,628M Account Receivables, Net $4,070M $4,570M DSO 70 Days 82 Days Inventories $4,820M $4,360M Inventory Turns 2.4 2.5 Deferred Revenue* $1,984M $2,755M Capital Expenditures $163M $140M Equity Com
Slide 17: March 2023 quarter guidance
$3.8B +/- $300M Revenue 44.0% +/- 1% March 2023 Non-GAAP gross margin quarter guidance 27.5% +/- 1% Non-GAAP operating margin $6.50 +/- $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. LAM R
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 December 25, September 25, 2022 2022 U.S. GAAP net income $ 1,468,507 $ 1,425,879 Pre-tax non-GAAP items: Amortization related to intangible as
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 December 25, December 26, 2022 2021 U.S. GAAP net income $ 5,125,098 $ 4,590,352 Pre-tax non-GAAP items: Amortization related to intangible as
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 December 25, September 25, 2022 2022 U.S. GAAP gross margin
Slide 22: 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 December 25, September 25, 2022 2022 U.S. GAAP Other income (expense), net $ (28,234) $ (43,095) Pre-tax non-GAAP items: Amortizatio
Slide 23: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Twelve Months Ended December 25, 2022 U.S. GAAP net cash provided by operating activities $ 3,531,419 U.S. GAAP cash used for capital expenditures and intangible assets $ (574,555) Total free cash flow $ 2,956,864 LA
Slide 24: 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 December 25, September 25, 2022 2022 U.S. GAAP income before income taxes $ 1,651,928 $ 1,654,745 U.S. GAAP income tax expense $ 183,421
Slide 25: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended March 26, 2023 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.8 Billion +/- $300 Million — $3.8 Billion +/- $300 Million Gross margin as a percentage of revenue 42.8% +/- 1% $ 45 Million 44.0% +/- 1% Op
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