Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q4 2020 Earnings Presentation
25 slides from Lam Research's earnings presentation, Jan 27, 2021
Slide 1: Lam Research Corporation December Quarter 2020 Financial Results
Lam Research Corporation December Quarter 2020 Financial Results January 27, 2021 © 2021 Lam Research Corp. | 01/27/2021 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 TIM ARCHER PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 4: 2020: Strongest Year in Lam History
2020: Strongest Year in Lam History Global teams rose Record year: Strong growth Breakthrough to challenges of Revenue of $11.9B across systems and product solutions COVID-19 and EPS of $20.45 customer support provide foundation businesses for success EPS = earnings per share Data calculated on a no
Slide 5: Semiconductor Demand and Higher Capital Intensity Support Sustainable Strength in WFE
Semiconductor Demand and Higher Capital Intensity Support Sustainable Strength in WFE 2020 WFE spending estimated in high $50 billion range Growth in 2020 across all segments of the market led by a NAND recovery, Foundry/Logic expansion, and a slight increase in DRAM 2021 WFE spending estimated in h
Slide 6: Leveraging Our Widening NAND Leadership to Launch Breakthrough Products
Leveraging Our Widening NAND Leadership to Launch Breakthrough Products Striker® FE Sense.i™ Vantex™ Introduced unique ICEFill™ Launched Sense.i™ etch platform, Launched first module on advanced dielectric gapfill for offering best in class process, Sense.i™ platform; features high aspect-ratio stru
Slide 7: Expanding Positions and Delivering Differentiated Technology Beyond NAND
Expanding Positions and Delivering Differentiated Technology Beyond NAND Unique atomic level etch capabilities and Foundry / materials innovation to expand SAM and Logic Share at key technology inflections Growing opportunity in DRAM patterning DRAM in both etch and deposition with EUV adoption SAM
Slide 8: Continued Growth for Customer Support Business Group
Continued Growth for Customer Support Business Group Growing Installed Base 70,000 ~66,000 Calendar year 2020 revenue growth exceeded ~61,000 chamber count growth by >2x 60,000 ~56,000 ~50,000 50,000 ~44,000 Installed Base Units ~40,000 40,000 Record revenues for all sub-segments within 30,000 CSBG
Slide 9: Excellent Position to Win
Excellent Position to Win Record financial performance Strong slate of innovative new products and services Execution on our strategy to expand leadership across markets © 2021 Lam Research Corp. | 01/27/2021 9
Slide 10: December Quarter 2020 Financial Results and March Quarter 21 Outlook
December Quarter 2020 Financial Results and March Quarter 2021 Outlook DOUG BETTINGER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 11: December Quarter Highlights
December Quarter Highlights Total Revenue Earnings per Share* ($B) Revenue Revenue ($B) ($) *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 © 2021 Lam Research Corp. | 01/27/2021 11
Slide 12: December Quarter Revenue Mix
December Quarter Revenue Mix Record level of foundry revenue dollars System Revenue Segments* Revenue by Region Logic/Other Revenue Europe US 6% 4% 3% SEA 10% Foundry China 26% Japan 35% NVM 10% 51% Revenue Taiwan DRAM Korea 17% 17% 21% Memory 68% NVM = non-volatile memory *Systems revenue includes
Slide 13: Customer Support Business Group
Customer Support Business Group CSBG Revenue ($B) © 2021 Lam Research Corp. | 01/27/2021 13
Slide 14: December Quarter Financial Results
December Quarter Financial Results Q Dec'20 Q Sep'20 Revenue $3,456M $3,177M Non-GAAP Gross Margin* 46.6% 47.5% Non-GAAP Operating Expenses* $563M $523M Non-GAAP Operating Income* $1,048M $988M Non-GAAP Operating Income as a percentage of Revenue* 30.3% 31.1% Non-GAAP Other Expense, Net* $53M $51M U
Slide 15: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Dec'20 Q Sep'20 Total Consolidated Gross Cash Balance $6,295M $6,911M Account Receivables, Net $2,900M $2,318M DSO 76 Days 66 Days Inventory Turns 3.2 3.1 Deferred Revenue* $640M $680M Capital Expenditures $92M $63M Equity Compensation Expense $52M $56M Amor
Slide 16: March 2021 Quarter Guidance
March 2021 Quarter Guidance $3.7B +/- $200M 46.0% +/- 1% Non-GAAP Revenue Gross Margin 30.5% +/- 1% $6.55 +/- $0.40 Non-GAAP Non-GAAP Operating Margin 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 *Based
Slide 17: Questions and Answers
Questions and Answers
Slide 18: 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 27, September 27, 2020 2020 U.S. GAAP net income $ 869,229 $ 823,451 Pre-tax non-GAAP items: Amortization related to intangible assets
Slide 19: 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 27, September 27, 2020 2020 U.S. GAAP gross margin
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other Expense, Net to Non-GAAP Other Expense, Net (in thousands) (unaudited) Three Months Ended December 27, September 27, 2020 2020 U.S. GAAP Other expense, net $ (29,941) $ (38,792) Pre-tax non-GAAP items: Amortization of note discounts 1,001 1
Slide 21: 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 27, September 27, 2020 2020 U.S. GAAP income before income taxes $ 979,783 $ 922,272 U.S. GAAP income tax expense $ 110,554 $ 9
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended March 28, 2021 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.7 Billion +/- $200 Million — $3.7 Billion +/- $200 Million Gross margin as a percentage of revenue 46.0% +/- 1% $ 1 Million 46.0% +/- 1% Ope
Slide 23: 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 27, December 29, December 29, 2020 2019 2019 (as adjusted for (as originally disclosed) comparability) U.S. GAAP net income $ 2,964,1
Slide 24: Appendix – Reconciliation
Appendix – Reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) U.S. GAAP net cash provided by operating activities for the quarter ended: March 29, 2020 $541,428 June 28, 2020 813,048 September 27, 2020 642,511 December 27, 2020 344,637 U.S. GAAP cash used for capital expenditur
Slide 25: VAA
VAA Innovative Technology Trusted Productivity Fast Solutions y NX