Slide 1: September Quarter 2015 Financial Results
Lam Research Corporation September Quarter 2015 Financial Results October 21, 2015 Lam Research Corp. | 10.21.2015 1
Slide 2: Cautions Regarding Forward-Looking Statements
Cautions Regarding Forward-Looking Statements Statements made in this document that are not 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. Such forward-looking statements relate to, but
Slide 3: Additional Information and Where to Find It; Participants in the Solicitation
Additional Information and Where to Find It; Participants in the Solicitation Additional Information and Where to Find It: This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval nor shall there be any sale of
Slide 4: September Quarter 2015 Financial Results and December Quarter 2015 Outlook
September Quarter 2015 Financial Results and December Quarter 2015 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer Lam Research Corp. | 10.21.2015 4
Slide 5: 2016 Industry Outlook
2016 Industry Outlook Memory Foundry Logic DRAM spend focused on Initial 10 nm investments Sustained commitment to 20 nm, optimized to to start technology conversions balance supply/demand FinFET investments to Optimized reuse of SSD adoption to drive continue installed base positive 3D
Slide 6: September Quarter Shipments
September Quarter Shipments QSep’15 shipments of $1.58 billion ► System shipments segment mix: Sep’15 Jun’15 Logic/Other Logic/Other 10% 14% Memory NAND & Memory (72%) Other NVM (60%) Foundry NAND & 18% Other NVM 23% 40% Foundry 26% DRAM DRAM 32% 37% Lam Research Corp. | 10.21.2015 6
Slide 7: September Quarter Financial Results
September Quarter Financial Results Sep’15 Jun’15 Revenue $1,600M $1,481M Non-GAAP Gross Margin* 46.5% 45.5% Non-GAAP Operating Expenses* $364M $355M Non-GAAP Operating Income* $380M $319M Non-GAAP Operating Margin* 23.8% 21.6% Non-GAAP Other Income/(Expense)* ($18.0M) ($11.3M) Non-GAAP Tax Rate* 14
Slide 8: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Sep’15 Jun’15 Total Consolidated Gross Cash Balance $4,515M $4,247M Account Receivables, Net $1,089M $1,094M DSO 62 Days 67 Days Inventory Turns 3.8 3.6 Deferred Revenue* $517M $518M Capital Expenditures $49M $63M Equity Compensation Expense $36M $40M Amortiza
Slide 9: December 2015 Quarter Non-GAAP Guidance
December 2015 Quarter Non-GAAP Guidance Dec’15 Guidance Shipments $1.275 billion ± $75 million Revenue $1.410 billion ± $75 million Non-GAAP Gross Margin 45.5% ± 1% Non-GAAP Operating Margin 20.5% ± 1% Non-GAAP Earnings per Share(1) $1.42 ± $0.10 (1) Based on a share count of ~172 million shares. La
Slide 10: VAA
VAA INNOVATIVE TECHNOLOGY TRUSTED PRODUCTIVITY FAST SOLUTIONS Alam .
Slide 11: 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 (unaudited) Three Months Ended September 27, June 28, 2015 2015 U.S. GAAP gross margin $ 722,363 $ 641,538 Pre-tax non-GAAP it
Slide 12: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and U.S. GAAP number of dilutive shares to Non-GAAP number of dilutive shares (in thousands, except per share data) (unaudited) Three Months Ended September 27, June 28, 2015 2015 U.S. GAAP net income $ 288,679 $
Slide 13: 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 27, June 28, 2015 2015 U.S. GAAP other expense, net $ (27,121) $ (20,353) Pre-tax non-GAAP items: Amortization of note discounts 9,122 9,019
Slide 14: 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 27, June 28, 2015 2015 U.S. GAAP income before income taxes $ 308,307 $ 170,682 U.S. GAAP income tax expense $ 19,628 $ 39,411
Slide 15: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the December 2015 Quarter (unaudited) Reconciling GAAP Items Non-GAAP Shipments $1.275 Billion +/- $75 Million - $1.275 Billion +/- $75 Million Revenue $1.410 Billion +/- $75 Million - $1.410 Billion +/- $75 Million Gross
Slide 16: Reconciliation of Deferred Revenue
Appendix – Reconciliation LAM RESEARCH CORPORATION RECONCILIATION OF DEFERRED REVENUE (in millions) (unaudited) Three Three Months Months Ended Ended September 27, June 28, 2015 2015 Beginning Balance $ 518.1 $ 485.2 Shipments 1,579.3 1,616.0 Revenue (1,600.0) (1,481.4) Net Change in Japan (1) 17.7
Slide 17: VAA
VAA INNOVATIVE TECHNOLOGY TRUSTED PRODUCTIVITY FAST SOLUTIONS Alam .