Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q4 2024 Earnings Presentation
26 slides from Lam Research's earnings presentation, Jul 31, 2024
Slide 1: Lam Research Corporation June quarter 2024 financial results
Lam Research Corporation June quarter 2024 financial results July 31, 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
$14.9B $1.9B ~17,200 REVENUE* R&D* EMPLOYEES As of June 30, 2024 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 + O
Slide 4: Business review & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 5: Solid June quarter results
Solid June quarter results Revenue, profitability*, CSBG revenue growth Lam Malaysia shipped EPS* all above of 22% QoQ led by 5000th chamber, fastest guidance midpoints Reliant® and spares ramp of a new businesses manufacturing facility in Lam’s history EPS = earnings per share QoQ = quarter-on-quar
Slide 6: CY 2024 WFE expected to be in mid-$90B range
CY 2024 WFE expected to be in mid-$90B range + Lam customer investment profile generally unchanged from prior view + Slightly stronger domestic China spending + Additional demand related to HBM capacity ramp + Foundry/logic, DRAM, and NAND investments all expected to be higher on a year-on-year basi
Slide 7: Power of AI yet to be fully realized
Power of AI yet to be fully realized • Current focus on model training driving strong demand for GPUs and HBM • AI expansion into inferencing anticipated to drive demand in low power DRAM and NAND storage • Memory WFE expected to be biased towards technology upgrades • Lam’s sizable installed base i
Slide 8: Our R&D focus is yielding exciting innovations
Our R&D focus is yielding exciting innovations DIRECTDRIVE ® 4F 2 DRAM New power source stabilizes plasma in CE systems with best-in-class etch chamber 500x faster than current performance - capable of precise industry standards etching of ultrasmall, HAR structures with unprecedented depth uniformi
Slide 9: Lam Cryo 3.0 performance
Lam Cryo 3.0 performance Parameter Cryo 3.0 NAND scaling vector improved Depth 10 µm Vertical Etch rate vs. 1.6x vs. current production 2.5x faster non-cryo etch 10 µm Max CD 108 nm Lateral ON >10% cell density increase memory channel Bottom CD 99 nm ∆CD (Max-Bottom) 9 nm Logical >2x improvement in
Slide 10: Growing AI environment
Growing AI environment Etch and deposition increasingly critical to addressing complex semiconductor requirements Exciting breadth of opportunities for Lam – GAA, BSPD, advanced packaging, and dry photoresist Planning to hold analyst day in February 2025 GAA = gate all around LAM RESEARCH BSPD = bac
Slide 11: June quarter 2024 financial results & September quarter 2024 outlook
June quarter 2024 financial results & September quarter 2024 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: Fiscal year highlights
Fiscal year highlights FY 2024 REVENUE $14.91B FY 2023 revenue: $17.43B FY 2024 GROSS MARGIN* 48.2% FY 2023 gross margin*: 45.3% 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: June quarter highlights
June quarter highlights QJUN'24 REVENUE $3.87B QMar’24 revenue: $3.79B QJUN'24 EARNINGS PER SHARE* $8.14 QMar'24 earnings per share*: $7.79 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 14: June quarter revenue mix
June quarter revenue mix SYSTEM REVENUE SEGMENTS* REVENUE BY REGION Europe Japan 3% NVM Logic/other 7% 17% 21% SEA Memory 8% 36% China 39% US 10% DRAM 19% Taiwan 15% Foundry Korea 43% 18% NVM = non-volatile memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from etch
Slide 15: Customer Support Business Group
Customer Support Business Group QJUN'24 CSBG REVENUE $1.70B QMar'24 CSBG revenue: $1.40B QJun'23 CSBG revenue: $1.50B LAM RESEARCH
Slide 16: June quarter financial results
June quarter financial results QJUN'24 QMAR'24 Revenue $3,872M $3,794M Non-GAAP Gross Margin* 48.5% 48.7% Non-GAAP Operating Expenses* $689M $698M Non-GAAP Operating Income* $1,187M $1,150M Non-GAAP Operating Income as a percentage of Revenue* 30.7% 30.3% Non-GAAP Other Income (Expense), Net* $19M $
Slide 17: Key balance sheet and financial metrics
Key balance sheet and financial metrics QJUN'24 QMAR'24 Total Consolidated Gross Cash Balance $5,851M $5,674M Account Receivables, Net $2,519M $2,204M Days Sales Outstanding 59 Days 57 Days Inventories $4,218M $4,323M Inventory Turns 1.9 1.8 Deferred Revenue* $1,552M $1,746M Capital Expenditures $10
Slide 18: September 2024 quarter guidance
$4.05B +/- $300M Revenue 47.0% +/- 1% September 2024 Non-GAAP gross margin* quarter guidance 29.5% +/- 1% Non-GAAP operating margin* $8.00 +/- $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
Slide 19: Q&A
Q&A LAM RESEARCH
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) Three Months Ended June 30, March 31, 2024 2024 U.S. GAAP net income $ 1,020,282 $ 965,826 Pre-tax non-GAAP items: Amortization related to intangible assets acqui
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 Twelve Months Ended June 30, March 31, June 30, June 25, 202
Slide 22: 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 June 30, March 31, 2024 2024 U.S. GAAP Other income (expense), net $ 27,796 $ 36,073 Pre-tax non-GAAP items: Amortization of note di
Slide 23: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Twelve Months Ended June 30, 2024 U.S. GAAP net cash provided by operating activities $ 4,652,269 U.S. GAAP cash used for capital expenditures and intangible assets (396,670) Total free cash flow $ 4,255,599 LAM RESE
Slide 24: 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 June 30, March 31, 2024 2024 U.S. GAAP income before income taxes $ 1,154,356 $ 1,093,185 U.S. GAAP income tax expense $ 134,074 $ 127,3
Slide 25: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the Quarter Ended September 29, 2024 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.05 Billion +/- $300 Million — $4.05 Billion +/- $300 Million Gross margin as a percentage of revenue 46.9% +/- 1% $ 3.1 Million 47.0% +/
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