Slide 1: March Quarter 2020 Financial Results
Lam Research Corporation March Quarter 2020 Financial Results April 22, 2020 © 2020 Lam Research Corp. | 4.22.2020 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 © 2020 Lam Research Corp. | 4.22.2020 3
Slide 4: Areas of Focus
Areas of Focus Ensure health and safety of our employees, partners, and their families Implement business continuity plans in manufacturing and supply chain network Increase the capability and expertise of regional teams to meet customers’ installed-base and new system installation needs Created $25
Slide 5: Solid Execution in the March Quarter
Solid Execution in the March Quarter March 2020 $2.50B $3.98 Quarter Results Revenue Earnings per Share* *Data calculated on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. © 2020 Lam Research Corp. | 4.22.2020 5
Slide 6: Industry Overview
Industry Overview ► Strong customer demand environment but equipment industry is supply constrained ► Exiting March quarter with record backlog ► Cloud and enterprise-related demand offset by weak consumer markets ► Underinvestment in supply in 2019 provides confidence in healthy memory market funda
Slide 7: Strategy for Outperformance
Strategy for Outperformance Installed Base Share Served Available Market Solid foundation with Wins in Etch across DRAM, Atomic layer deposition revenues ($856M in NAND, Foundry/Logic (ALD) for advanced logic March) growing faster Customer pull for Sense.i™, nodes and 3D NAND gapfill than in
Slide 8: Summary
Summary Executing well in challenging environment Continued focus on mitigating operational impacts Confident in long-term secular demand for semiconductors driving WFE growth © 2020 Lam Research Corp. | 4.22.2020 8
Slide 9: March Quarter 2020 Financial Results and June Quarter 2020 Outlook
March Quarter 2020 Financial Results and June Quarter 2020 Outlook Doug Bettinger Executive Vice President and Chief Financial Officer © 2020 Lam Research Corp. | 4.22.2020 9
Slide 10: March Quarter Results
March Quarter Results Revenue Earnings per Share* $3.98 $4.01 $2.50 $2.58 Revenue ($B) EPS ($) Revenue Revenue QMar'20 QDec'19 QMar'20 QDec'19 *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. © 2020 Lam Re
Slide 11: March Quarter Revenue Mix
March Quarter Revenue Mix ► Increases in Memory investments; Foundry strength continued System Revenue Segments * Revenue by Region Europe 3% SEA 2% Logic/Other 13% US 9% NVM Japan China Foundry Revenue 10% Revenue 32% 40% 31% Taiwan DRAM 21% Korea 16% Memory 23% 56% NVM = Non-Volatile Memory * Syst
Slide 12: March Quarter Financial Results
March Quarter Financial Results Q Mar’20 Q Dec’19 Revenue $2,504M $2,584M Non-GAAP Gross Margin* 46.3% 45.7% Non-GAAP Operating Expenses* $486M $481M Non-GAAP Operating Income* $673M $700M Non-GAAP Operating Income as a percentage of 26.9% 27.1% Revenue* Non-GAAP Other Expense, Net* $30M $13M Non-GA
Slide 13: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Mar’20 Q Dec’19 Total Consolidated Gross Cash Balance $5,647M $4,938M Account Receivables, Net $2,191M $2,030M DSO 80 Days 72 Days Inventory Turns 3.2 3.7 Deferred Revenue* $726M $411M Capital Expenditures $51M $62M Equity Compensation Expense $47M $46M Amor
Slide 14: June 2020 Quarter Outlook
June 2020 Quarter Outlook ► Customer demand strong, but currently output constrained ► Expect June quarter revenues to be higher than March with current operational performance ► Capacity challenges negatively impact gross margin ► CSBG business remains resilient ► Actively managing costs with incre
Slide 15: Questions and Answers
Questions and Answers © 2020 Lam Research Corp. | 4.22.2020 15
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 March 29, December 29, December 29, 2020 2019 2019 (As Previously Presented) (As Adjusted) U.S. GAAP net income $ 574,781 $ 514,510 $ 514,510 P
Slide 17: 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 March 29, December 29, December 29, 2020 2019 2019 (As Previ
Slide 18: 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 29, December 29, December 29, 2020 2019 2019 (As Previously Presented) (As Adjusted) U.S. GAAP Other expense, net $ (64,619) $ (13,924) $ (13,92
Slide 19: 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 29, December 29, December 29, 2020 2019 2019 (As Previously Presented) (As Adjusted) U.S. GAAP income before income taxes $ 629,49
Slide 20: VAA
VAA Innovative Technology Trusted Productivity Fast Solutions y NX