Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q3 2021 Earnings Presentation
24 slides from Lam Research's earnings presentation, Oct 20, 2021
Slide 1: Lam Research Corporation September quarter 2021 financial results
Lam Research Corporation September quarter 2021 financial results October 20, 2021
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 & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 4: Delivering results, investing for long-term growth
Delivering results, investing for long-term growth Solid September quarter 6th consecutive Investing in capacity results: EPS above quarter of revenue additions to meet mid-point of guided range and EPS growth strong WFE demand EPS = earnings per share LAM RESEARCH EPS calculated on a non-GAAP basis
Slide 5: WFE spending remains strong
WFE spending remains strong Calendar year 2021 WFE expected in mid-$80 billion range Second half of 2021 WFE trending higher than first half, led by DRAM and Foundry/Logic, with NAND more balanced Broad-based demand strength expected to drive another year of spending growth in 2022 LAM RESEARCH
Slide 6: CSBG – Strength in trailing-edge and installed-base
CSBG – Strength in trailing-edge and installed-base Broad semi demand and high fab utilization enabling growth Sectors including automotive, healthcare, and security increasingly dependent on semiconductors Reliant® business posted 11th consecutive quarter of record revenues and is outperforming WFE
Slide 7: Leading-edge: Semi content growth and rising capital intensity
Leading-edge: Semi content growth and rising capital intensity Foundry/Logic: Next-gen processor chip >20% larger than predecessor DRAM: Increasing need to correct single bit errors through an extra on-chip bit NAND: Higher layer counts leading to greater degree of manufacturing difficulty Overall r
Slide 8: Extending Lam’s 3D NAND leadership
Extending Lam’s 3D NAND leadership Lam is investing in new and differentiated technologies to ensure layer scaling remains cost effective New high productivity cryo etch solution increases etch rates in devices over 200 layers New capability installed for qualification at every major 3D NAND manufac
Slide 9: Lam is delivering differentiation in Foundry/Logic
Lam is delivering differentiation in Foundry/Logic SUPPORTING EFFICIENT ADOPTION OF EUV PATTERNING ENABLING FORMATION OF CRITICAL TRANSISTOR FEATURES Critical Etch and Deposition technologies to help Significant Conductor Etch wins for FinFET and solve EUV implementation challenges GAA Growing numbe
Slide 10: Lam is exceptionally well-positioned as semiconductor technology continues to advance
Lam is exceptionally well-positioned as semiconductor technology continues to advance + Solid performance in September quarter + Healthy WFE spending outlook + Robust semiconductor demand across segments & industries + Rising capital intensity + With innovative product portfolio, Lam poised to captu
Slide 11: September Quarter 2021 financial results & December Quarter 2021 outlook
September Quarter 2021 financial results & December Quarter 2021 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: September quarter highlights
September quarter highlights Q SEP'21 REVENUE $4.30B Q Jun’21 revenue: $4.15B Q SEP'21 EARNING PER SHARE* $8.36 Q Jun'21 EPS*: $8.09 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 13: September quarter revenue mix
September quarter revenue mix Record level of Logic/Other revenue dollars System revenue segments* Revenue by region Logic/other U.S. Europe 11% 6% 2% SEA 8% China 37% NVM Foundry Japan 45% 25% 11% Taiwan 15% Memory DRAM 64% Korea 19% 21% NVM = non-volatile memory LAM RESEARCH *Systems revenue inclu
Slide 14: Customer Support Business Group
Customer Support Business Group Q SEP’21 CSBG REVENUE $1.38B Q JUN’21 CSBG REVENUE Q SEP’20 CSBG REVENUE $1.38B $1.03B LAM RESEARCH
Slide 15: September quarter financial results
September quarter financial results Q SEP'21 Q JUN'21 Revenue $4,304M $4,145M Non-GAAP Gross Margin* 46.0% 46.5% Non-GAAP Operating Expenses* $586M $574M Non-GAAP Operating Income* $1,393M $1,353M Non-GAAP Operating Income as a percentage of Revenue* 32.4% 32.6% Non-GAAP Other Expense, Net* $36M $23
Slide 16: Key balance sheet and financial metrics
Key balance sheet and financial metrics Q SEP'21 Q JUN'21 Total Consolidated Gross Cash Balance $4,863M $5,982M Account Receivables, Net $3,397M $3,026M DSO 72 Days 66 Days Inventories $2,872M $2,689M Inventory Turns 3.2 3.3 Deferred Revenue* $1,110M $1,119M Capital Expenditures $136M $105M Equity C
Slide 17: December 2021 quarter guidance
$4.4B +/- $250M Revenue 46.0% +/- 1% December 2021 Non-GAAP gross margin* quarter guidance 32.0% +/- 1% Non-GAAP operating margin* $8.45 +/- $0.50 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 L
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 September 26, June 27, 2021 2021 U.S. GAAP net income $ 1,179,744 $ 1,144,657 Pre-tax non-GAAP items: Amortization related to intangible assets
Slide 20: 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 September 26, June 27, 2021 2021 U.S. GAAP gross margin $ 1,
Slide 21: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP Other Expense, Net to Non-GAAP Other Expense, Net (in thousands) (unaudited) Three Months Ended September 26, June 27, 2021 2021 U.S. GAAP Other expense, net $ (28,857) $ (7,166) Pre-tax non-GAAP items: Amortization of note discounts 683 923 Gain
Slide 22: 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 September 26, June 27, 2021 2021 U.S. GAAP income before income taxes $ 1,343,376 $ 1,308,761 U.S. GAAP income tax expense $ 163,632 $ 1
Slide 23: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended December 26, 2021 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.4 Billion +/- $250 Million — $4.4 Billion +/- $250 Million Gross margin as a percentage of revenue 46.0% +/- 1% $ 1 Million 46.0% +/- 1%
Slide 24: Slide 24