Slide 1: December Quarter 2013 Financial Results
Lam Research Corporation December Quarter 2013 Financial Results January 29, 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 January 29, 2014
Slide 4: Executed on Company Vision in 2013
Executed on Company Vision in 2013 Delivered strong financial results – Generated ~$4B in revenues in CY’13 – Grew operating profit twice as fast as revenue – Drove ~$100M in annualized cost synergies and ~$130M in revenue synergies Re-energized commitment to installed base performance – Closed the
Slide 5: Driving Programs To Support Strategic Objectives
Driving Programs To Support Strategic Objectives Positioning next generation products for long term growth – Focusing on increased competitive differentiation and profitability – Supports 2015/2016 market share objectives Consolidating real estate footprint to further realize efficiencies – Driv
Slide 6: 2014 Industry Outlook
2014 Industry Outlook Foundry Forecast foundry WFE spend to increase by 10%-20% in 2014 $13-$14B supported by ongoing 20nm ramp and FinFET pilot production Logic High levels of equipment reuse to support leading edge ~$6B production needs; expect WFE spending flat with 2013 Project stable pricing co
Slide 7: Positioned for Outperformance in 2014
Positioned for Outperformance in 2014 Expanding on early successes in 3D NAND – Maintaining lead in etch and gaining share in deposition – Strong pipeline of new products are gaining traction with customers – Well-positioned in 3D NAND pilot lines and focused on winning production tool decisions
Slide 8: Executing Strategic Growth Objectives
Executing Strategic Growth Objectives Increasing the magnitude of new product releases and customer engagements Executing operational plans and driving efficiencies toward achieving 2015/2016 financial model Reinforcing emphasis on customer trust and broader collaboration Strengthening Lam’s Competi
Slide 9: December Quarter 2013 Financial Results and March Quarter 14 Outlook
December Quarter 2013 Financial Results and March Quarter 2014 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer 9 January 29, 2014
Slide 10: December Quarter Shipments
December Quarter Shipments Shipments of $1.139 billion – Up 15% sequentially from the September quarter System shipments segment mix: Dec’13 Sep’13 Memory 64% 48% NAND 36% 28% DRAM 28% 19% Other Memory 0% 1% Foundry 28% 36% Logic/Other 8% 16% 10 January 29, 2014
Slide 11: December Quarter Financial Results
December Quarter Financial Results Dec’13 Sep’13 Revenue $1,116M $1,015M Non-GAAP Gross Margin* 45.8 % 45.0 % Non-GAAP Operating Expenses * $302M $292M Non-GAAP Operating Income * $209M $165M Non-GAAP Operating Margin * 18.7% 16.2% Non-GAAP Other Income/(Expense) * ($0.6M) ($6.2M) Non-GAAP Tax Rate
Slide 12: Key Balance Sheet Metrics
Key Balance Sheet Metrics Dec’13 Sep’13 Total Consolidated Gross Cash Balance $2,689M $2,623M Account Receivables, Net $910M $714M DSO 74 Days 64 Days Inventory Turns 3.8 3.8 Deferred Revenue* $405M $334M Capital Expenditures $38M $24M Equity Compensation Expense $23M $23M Amortization Expense $41M
Slide 13: March 2014 Quarter Guidance
March 2014 Quarter Guidance Shipments $1.250 billion ± $30 million Revenue $1.215 billion ± $30 million Non-GAAP Gross Margin 45% ± 1% Non-GAAP Operating Margin 19.5% ± 1% Non-GAAP Earnings per Share(1) $1.15 ± $0.05 (1) Based on a share count of ~173 million shares 13 January 29, 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 December 29, September 29, 2013 2013 U.S.
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 December 29, September 29, 2013 2013 U.S. GAAP net income $ 148,992 $ 85,506 Pre-tax non-GAAP items: Amortization related to
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 December 29, September 29, 2013 2013 U.S. GAAP other expense, net $ (3,837) $ (14,262) Pre-tax non-GAAP items: Amortization of convertible note discou
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 December 29, September 29, 2013 2013 U.S. GAAP income before income taxes $ 160,637 $ 91,146 U.S. GAAP income tax expense (benefit) $ 11
Slide 19: Appendix – Reconciliation of Deferred Revenue
Appendix – Reconciliation LAM RESEARCH CORPORATION RECONCILIATION OF DEFERRED REVENUE (in millions) (unaudited) Three Months Ended Dec 29 Sep 29 2013 2013 Beginning Balance $ 334.0 $ 389.2 Shipments 1,139.5 987.2 Revenue (1,116.1) (1,015.1) Net Change in Japan (1) 43.8 (14.3) Services & Other 3.8 (1
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Gross Margin to Non-GAAP Gross Margin (in thousands, except percentages) (unaudited) Twelve Months Ended Twelve Months Ended December 29, December 23, 2013 2012 U.S. GAAP gross margin $ 1,673,406 $ 1,214,660 Pre-tax non-GAAP items: Costs associat
Slide 21: Innovative Technology
Innovative Technology Trusted Productivity Fast Solutions RESEARCH