Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q2 2024 Earnings Presentation
27 slides from Lam Research's earnings presentation, Jan 24, 2024
Slide 1: Lam Research Corporation December quarter 2023 financial results
Lam Research Corporation December quarter 2023 financial results January 24, 2024
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
$14.3B $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 R E S E AR C H
Slide 5: Strong finish to CY 2023
Strong finish GROWING INSTALLED BASE UNITS ~90,000 to CY 2023 ~75,000 ~84,000 ~66,000 + QDec'23 revenues, margins and EPS above ~61,000 mid-point of guided ranges + CY'23 Revenue of $14.3B and EPS of $27.33 + Results demonstrate solid execution from CY'19 trough, including nearly 2x EPS improvement
Slide 6: WFE: Modest memory recovery expected to drive stronger exit in 2024
WFE: Modest memory recovery expected to drive stronger exit in 2024 CY 2023 WFE in low $80Bs • Memory down nearly 40% y/y, non-memory down in the mid-single digits CY 2024 WFE projected in mid-high $80Bs: • DRAM: Growth driven by capacity additions in HBM as well as node conversions • NAND: Growth d
Slide 7: Scaling Lam to address long-term WFE expansion
Scaling Lam to address long-term WFE expansion DIFFERENTIATED PRODUCTS & SERVICES CLOSE TO CUSTOMERS OPERATIONAL EXCELLENCE AT SCALE Focus on multiple SAM expansion Investing in: Digital investments – virtual twinning, opportunities: • Process development capabilities simulation, and AI – accelerate
Slide 8: Lam well positioned to capitalize on robust semiconductor growth
Lam well positioned to capitalize on robust semiconductor growth Delivered solid results in CY’23 Investing to build strong capabilities for the future Strategic global infrastructure and technology portfolio to capitalize on robust semiconductor growth LAM R E S E AR C H
Slide 9: December quarter 2023 financial results & March quarter 2024 outlook
December quarter 2023 financial results & March quarter 2024 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM R E S E AR C H
Slide 10: Calendar year highlights
Calendar year highlights CY 2023 REVENUE $14.3B CY 2022 revenue: $19.0B CY 2023 EARNINGS PER SHARE* $27.33 CY 2022 EPS*: $37.31 LAM R E S E AR C H *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 11: December quarter highlights
December quarter highlights QDEC'23 REVENUE $3.76B QSep'23 revenue: $3.48B QDEC'23 EARNINGS PER SHARE* $7.52 QSep'23 earnings per share*: $6.85 LAM R E S E AR C H *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 present
Slide 12: December quarter revenue mix
December quarter revenue mix Record level of DRAM revenue dollars SYSTEM REVENUE SEGMENTS* REVENUE BY REGION SEA Logic/other Europe 4% NVM 14% 5% 17% US 5% Memory 48% Taiwan China 13% 40% Foundry DRAM 31% Japan 38% 14% Korea 19% NVM = non-volatile memory LAM R E S E AR C H *Systems revenue includes
Slide 13: Customer Support Business Group
Customer Support Business Group QDEC'23 CSBG REVENUE $1.46B QSep'23 CSBG revenue: $1.43B QDec'22 CSBG revenue: $1.73B LAM R E S E AR C H
Slide 14: December quarter financial results
December quarter financial results QDEC'23 QSEP'23 Revenue $3,758M $3,482M Non-GAAP Gross Margin* 47.6% 47.9% Non-GAAP Operating Expenses* $662M $622M Non-GAAP Operating Income* $1,128M $1,047M Non-GAAP Operating Income as a percentage of Revenue* 30.0% 30.1% Non-GAAP Other Income (Expense), Net* $5
Slide 15: Key balance sheet and financial metrics
Key balance sheet and financial metrics QDEC'23 QSEP'23 Total Consolidated Gross Cash Balance $5,640M $5,157M Account Receivables, Net $2,707M $2,811M Days sales outstanding 66 Days 73 Days Inventories $4,430M $4,748M Inventory Turns 1.8 1.5 Deferred Revenue* $1,928M $1,690M Capital Expenditures $11
Slide 16: March 2024 quarter guidance
$3.7B +/- $300M Revenue 48.0% +/- 1% March 2024 Non-GAAP gross margin* quarter guidance 29.5% +/- 1% Non-GAAP operating margin* $7.25 +/- $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
Slide 17: LAM R E S E AR C H
LAM R E S E AR C H
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 24, September 24, 2023 2023 U.S. GAAP net income $ 954,266 $ 887,398 Pre-tax non-GAAP items: Amortization related to intangible assets
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) Twelve Months Ended December 24, December 25, 2023 2022 U.S. GAAP net income $ 3,458,209 $ 5,125,098 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 29, December 29, 2019 2019 (as originally (as adjusted for disclosed) comparability) U.S. GAAP net income $ 2,069,514 $ 2,069,514 Pre
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 24, September 24, 2023 2023 U.S. GAAP gross margin
Slide 22: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP Operating Income to Non-GAAP Operating Income (in thousands, except percentages) (unaudited) Twelve Months Ended December 24, December 29, December 29, 2023 2019 2019 (as originally (as adjusted for disclosed) comparability) U.S. GAAP operating i
Slide 23: 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 24, September 24, 2023 2023 U.S. GAAP Other income (expense), net $ 29,839 $ 2,601 Pre-tax non-GAAP items: Amortization of
Slide 24: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Twelve Months Ended December 24, 2023 U.S. GAAP net cash provided by operating activities $ 5,254,166 U.S. GAAP cash used for capital expenditures and intangible assets (390,395) Total free cash flow $ 4,863,771 LAM
Slide 25: 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 24, September 24, 2023 2023 U.S. GAAP income before income taxes $ 1,087,051 $ 1,025,630 U.S. GAAP income tax expense $ 132,785
Slide 26: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended March 31, 2024 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 47.2% +/- 1% $ 28 Million 48.0% +/- 1% Op
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