Slide 1: Lam Research Corporation September Quarter 2020 Financial Results
Lam Research Corporation September Quarter 2020 Financial Results October 21, 2020 © 2020 Lam Research Corp. | 10.21.2020 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. | 10.21.2020 3
Slide 4: Strong September Quarter Results
Strong September Quarter Results ▪ Record September $3.18B 47.5% Quarter Revenue Revenue Gross Margin* and EPS ▪ First $1B Revenue Quarter for CSBG 31.1% $5.67 Operating Margin* Earnings per Share* *Data calculated on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be
Slide 5: Industry Overview
Industry Overview 2020 WFE spending estimated in mid to high $50 billion range Broad-based strength in Foundry-Logic spending, including leading-edge nodes NAND spending growing at 9x layer and beyond DRAM spending expected to increase as we progress into 2021 Accelerating secular drivers expected t
Slide 6: Equipment Intelligence Solutions and Technology Leadership
Equipment Intelligence® Solutions and Technology Leadership Sense.i™ Corvus® R Remote Etch Platform Automated Maintenance Support Services ► Breakthrough productivity and ► Lowering operating expense in ► Connecting to experts for speed-to-solution powered by critical and semi-critical highest quali
Slide 7: Differentiated Solutions for 3D
Differentiated Solutions for 3D 3D NAND Leadership ► Increasing positions for enhanced ALD gapfill, advanced carbon patterning film, and high aspect ratio etch Packaging Expertise ► Doubling of installed base since 2015 for SABRE® 3D ECD and Syndion® etch tools © 2020 Lam Research Corp. | 10.21.2020
Slide 8: Summary
Summary Lam’s capabilities and strategic investments aligned with the fundamental needs of our customers and our industry Innovative products and services that drive efficiencies from design through support and maintenance activities Execution on strategic growth objectives reflected in strong finan
Slide 9: September Quarter 2020 Financial Results and December Quarter 2020 Outlook
September Quarter 2020 Financial Results and December Quarter 2020 Outlook Doug Bettinger Executive Vice President and Chief Financial Officer © 2020 Lam Research Corp. | 10.21.2020 9
Slide 10: September Quarter Results
September Quarter Results Total Revenue CSBG Revenue Earnings per Share* $3.18 $5.67 $2.79 $4.78 ($B) ($B) ($) Revenue Revenue Revenue $1.03 $0.93 QSep'20 QJun'20 QSep'20 QJun'20 QSep'20 QJun'20 CSBG = Customer Support Business Group *Data are presented on a non-GAAP basis. Reconciliations of U.S. G
Slide 11: September Quarter Revenue Mix
September Quarter Revenue Mix ► Record level of Foundry revenue dollars System Revenue Segments * Revenue by Region Europe 2% Logic/Other US 4% 6% SEA 7% Foundry NVM Japan China 12% 37% 36% Revenue 39% Revenue Taiwan 14% DRAM Korea 19% 24% Memory 58% NVM = Non-Volatile Memory * Systems revenue inclu
Slide 12: September Quarter Financial Results
September Quarter Financial Results Q Sep’20 Q Jun’20 Revenue $3,177M $2,792M Non-GAAP Gross Margin* 47.5% 46.1% Non-GAAP Operating Expenses* $523M $493M Non-GAAP Operating Income* $988M $795M Non-GAAP Operating Income as a percentage of Revenue* 31.1% 28.5% Non-GAAP Other Expense, Net* $51M $33M U.
Slide 13: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Sep’20 Q Jun’20 Total Consolidated Gross Cash Balance $6,911M $6,964M Account Receivables, Net $2,318M $2,097M DSO 66 Days 68 Days Inventory Turns 3.1 3.2 Deferred Revenue* $680M $537M Capital Expenditures $63M $51M Equity Compensation Expense $56M $53M Amor
Slide 14: December 2020 Quarter Guidance
December 2020 Quarter Guidance $3.3B $200M 46.0% 1% Non-GAAP Revenue Gross Margin 29.5% 1% $5.60 $0.40 Non-GAAP Non-GAAP Operating Margin 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 *Based on a
Slide 15: Questions and Answers
Questions and Answers © 2020 Lam Research Corp. | 10.21.2020 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 September 27, June 28, 2020 2020 U.S. GAAP net income $ 823,451 $ 696,673 Pre-tax non-GAAP items: Amortization related to intangible assets acq
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 September 27, June 28, 2020 2020 U.S. GAAP gross margin $ 1,
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 September 27, June 28, 2020 2020 U.S. GAAP Other expense, net $ (38,792) $ (7,553) Pre-tax non-GAAP items: Amortization of note discounts 1,011 935 Ga
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 September 27, June 28, 2020 2020 U.S. GAAP income before income taxes $ 922,272 $ 748,169 U.S. GAAP income tax expense $ 98,821 $ 51,496
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended December 27, 2020 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.3 Billion +/- $200 Million — $3.3 Billion +/- $200 Million Gross margin as a percentage of revenue 46.0% +/- 1% $ 1 Million 46.0% +/- 1%
Slide 21: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Twelve Months Ended December 29, December 29, 2019 2019 (as originally (as adjusted for disclosed) comparability) U.S. GAAP net income $ 2,069,514 $ 2,069,514 Pre
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Twelve Months Ended December 27, 2020 (Projected) U.S. GAAP net income for the nine months ended September 27, 2020 $ 2,094,905 Projected U.S. GAAP net income for
Slide 23: Innovative Technology, Trusted Productivity, Fast Solutions
VAA Innovative Technology Trusted Productivity Fast Solutions y NX