Slide 1: March Quarter 2014 Financial Results
Lam Research Corporation March Quarter 2014 Financial Results April 23, 2014
Slide 2: Cautions Regarding Forward-Looking Statements
Cautions Regarding Forward-Looking Statements Statements made in this presentation that are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Forward-looking statements relat
Slide 3: Business Review and Industry Outlook
Business Review and Industry Outlook Martin Anstice President & Chief Executive Officer 3 April 23, 2014
Slide 4: Another Quarter of Strong Execution
Another Quarter of Strong Execution Lam Achieved Strong Financial Results Profitable Growth Modeled Performance – Above mid-point of –10% sequential revenue – In-line with long-term financial guidance range for all metrics growth targets ahead of schedule – Cash from operations – Operating income gr
Slide 5: Positive Traction with Key Solutions
Positive Traction with Key Solutions – Lam is addressing all critical steps in transistor formation 3D NAND – PTOR selections for dielectric deposition, dielectric etch and tungsten CVD – Benefiting in etch from increased multi-patterning steps in Multi- DRAM and Foundry 20nm / FinFET Patterning – S
Slide 6: 2014 Industry Outlook
2014 Industry Outlook Continued investments for both Planar and 3D NAND – Majority investments for Planar NAND in 2014 – Second generation 3D NAND investments extended into early 2015 Strong DRAM investments for mid-2x and 20 nm nodes – Multi-patterning and technology conversions driving spend –
Slide 7: Positioned for Outperformance in 2014
Positioned for Outperformance in 2014 Strong leverage to technology inflections represent expansion opportunities – Benefiting from the further adoption of multi-patterning in Foundry and DRAM – Expanding on early successes in 3D NAND Lam’s exposure to industry segments is more balanced than eve
Slide 8: March Quarter 2014 Financial Results and June Quarter 2014 Outlook
March Quarter 2014 Financial Results and June Quarter 2014 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer 8 April 23, 2014
Slide 9: Positive Momentum to Start 2014
Positive Momentum to Start 2014 Shipments at an all-time high Four consecutive quarters of record revenue Operating income outpaced revenue growth Gross Margin toward the upper end of guidance range Earnings per share exceeded the high end of guidance range More than doubled operational
Slide 10: March Quarter Shipments
March Quarter Shipments Shipments of $1.264 billion – Up 11% sequentially from the December quarter System shipments segment mix: Mar’14 Dec’13 Memory 66% 64% NAND 36% 36% DRAM 30% 28% Foundry 28% 28% Logic/Other 6% 8% 10 April 23, 2014
Slide 11: March Quarter Financial Results
March Quarter Financial Results Mar’14 Dec’13 Revenue $1,227M $1,116M Non-GAAP Gross Margin* 45.5 % 45.8 % Non-GAAP Operating Expenses * $311M $302M Non-GAAP Operating Income * $248M $209M Non-GAAP Operating Margin * 20.2% 18.7% Non-GAAP Other Income/(Expense) * ($1.4M) ($0.6M) Non-GAAP Tax Rate * 1
Slide 12: Key Balance Sheet Metrics
Key Balance Sheet Metrics Mar’14 Dec’13 Total Consolidated Gross Cash Balance $2,898M $2,689M Account Receivables, Net $818M $910M DSO 61 Days 74 Days Inventory Turns 3.9 3.8 Deferred Revenue* $432M $405M Capital Expenditures $42M $38M Equity Compensation Expense $24M $23M Amortization Expense $40M
Slide 13: June 2014 Quarter Non-GAAP Guidance
June 2014 Quarter Non-GAAP Guidance Shipments $1.150 billion ± $50 million Revenue $1.240 billion ± $50 million Non-GAAP Gross Margin 46.0% ± 1% Non-GAAP Operating Margin 20.0% ± 1% Non-GAAP Earnings per Share(1) $1.21 ± $0.07 (1) Based on a share count of ~172 million shares 13 April 23, 2014
Slide 14: Q&A
Q&A Alam RESEARCH
Slide 15: 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 Three Months Ended March 30, December 29, 2014 2013 U.S. GAA
Slide 16: 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 Three Months Ended March 30, December 29, 2014 2013 U.S. GAAP net income $ 164,396 $ 148,992 Pre-tax non-GAAP items: Amortization related to in
Slide 17: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other Expense, Net to Non-GAAP Other Expense, Net (in thousands) (unaudited) Three Months Ended March 30, December 29, 2014 2013 U.S. GAAP other expense, net $ (9,855) $ (3,837) Pre-tax non-GAAP items: Amortization of convertible note discount, L
Slide 18: 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 March 30, December 29, 2014 2013 U.S. GAAP income before income taxes $ 182,082 $ 160,637 U.S. GAAP income tax expense $ 17,686 $ 11,645
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation LAM RESEARCH CORPORATION RECONCILIATION OF DEFERRED REVENUE (in millions) (unaudited) Three Months Ended Mar 30 Dec 29 2014 2013 Beginning Balance $ 405.0 $ 334.0 Shipments 1,263.8 1,139.5 Revenue (1,227.4) (1,116.1) Net Change in Japan (1) (3.2) 43.8 Services & Other (6.7)
Slide 20: Innovative Technology
Innovative Technology Trusted Productivity Fast Solutions RESEARCH