Slide 1: March Quarter 2019 Financial Results
Alan Lam Research Corporation March Quarter 2019 Financial Results April 24, 2019 © 2019 Lam Research Corp. | 4.24.2019 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
VA Business Review and Industry Outlook Tim Archer President and Chief Executive Officer A © 2019 Lam Research Corp, | 4.24.2019 3
Slide 4: Strong Execution in Challenging Environment
Strong Execution in Challenging Environment t$) $2.44B in Revenue March 2019 Quarter Results 25.1% Operating Margin* RS $3.70 in 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 © 2019 Lam
Slide 5: Industry Overview
Industry Overview Overall customer WFE spending for 2019 to be in low $40 billions Memory supply growth for 2019 is expected to be lower than long-term demand trendline Foundry and Logic growth slightly higher than previous expectations Lam is confident in long-term demand trends that drive our busi
Slide 6: Technology Innovation Drives Opportunity for Lam
ctor Innovation Dri nity for Lam Additional bit lines in Emerging memory devices High bandwidth memory and memory require increase in require new etch heterogenous packaging etch and deposition technologies such as ion integration drive need for intensity beam etch TSV* and WLP* technologies Focus t
Slide 7: Deposition and Etch — Central to Customers’ Technology Roadmaps
Deposition and Etch — Central to Customers’ Technology Roadmaps Deposition = Quad-station module rapidly becoming = New industry benchmark set by Kiyo® architecture of choice for 3D NAND system with Corvus® R technology = SABRE® ECD* enabling new materials for scaling beyond 10 nm Lam executed well
Slide 8: CSBG Continues to Deliver Sequential Revenue and Installed-base Unit Growth
CSBG Continues to Deliver Sequential Revenue and Installed-base Unit th Installed Base Units 60,000 40,000 30,000 : ~44,000 ~40,000 ~36,000 | : ~56,000 Reliant® Systems 2014 2015 2016 2017 2018 ~50,000 * Reliant systems business reached highest quarterly revenue level in our history On track to deli
Slide 9: Product and services portfolio of Lam is unmatched
Product and services portfolio of Lam is unmatched in its broad fit to emerging technology inflections Lam is leveraging Industry 4.0 technologies, advanced computing, and big data to bring innovative products and services to our customers CSBG had sequential quarterly revenue growth and is on track
Slide 10: March Quarter 2019 Financial Results and June Quarter Outlook
WA March Quarter 2019 Financial Results and June Quarter 2019 Outlook Doug Bettinger Executive Vice President and Chief Financial Officer » / A © 2019 Lam Research Corp. | 4.24.2019 10
Slide 11: March Quarter Results
March Quarter Results > Non-GAAP EPS exceeded high end of guidance range > Cash from operations at $933 million - the second highest quarterly cash generation in our history $2.52 $3.70 $3.87 & - ° = 3 4) F & & QMar'19 QDec'18 QMar'19 QDec'18 *Data are presented on a non-GAAP basis. Reconciliations
Slide 12: March Quarter Revenue Mix
March Quarter Revenue Mix > Foundry systems revenue mix at highest level since March 2017 System Revenue Segments Revenue by Region Europe, 4% Logic/Other SEA, 5% ‘N NVM “eas 21% : Memory 61% © 2019 Lam Research Corp. | 4.24.2019 12
Slide 13: March Quarter Financial Results
March Quarter Financial Results i Revenue $2,439M $2,523M Non-GAAP Gross Margin* 45.1% 46.3% Non-GAAP Operating Expenses* $488M $440M Non-GAAP Operating Income* $611M $728M Non-GAAP Operating Income as a 25.1% 28.8% percentage of Revenue* Non-GAAP Other Income/(Expense)* $21M ($30M) Non-GAAP Tax Rat
Slide 14: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics i Total Consolidated Gross Cash Balance $6,397M $3,891M Account Receivables, Net $1,522M $1,869M DSO 61 Days 67 Days Inventory Turns 3.4 312 Deferred Revenue* $441M $493M Capital Expenditures $76M $106M Equity Compensation Expense $53M $39M Amortization Expens
Slide 15: June 2019 Quarter Guidance
June 2019 Quarter Guidance ts) $2.35B + $150M ec 26.0% + 1% Revenue Operating margins = is_ Non-GAAP Non-GAAP Gross Margin Earnings per Share* [SY 45.5% + 1% $3.40 + $0.20 A reconciliation of U.S. GAAP projected results to non-GAAP projected results can be found at the end of this presentation *Base
Slide 16: Questions and Answers
WA Questions and Answers V A © 2019 Lam Research Corp, | 4.24.2019 16
Slide 17: 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 31, December 23, tos 018 US. GAAP net income $ 547,390 $ 568,855 Pre-tax non-GAAP items: Amortization related to intangible assets acquir
Slide 18: 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 31, December 23, 2019 2018 U.S. GAAP gross margin $ 1,
Slide 19: 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 March 31, December 23, 2019 2018 U.S. GAAP Other income (expense), net Ss 20,532 $ (30,649) Pre-tax non-GAAP items: Amortization of
Slide 20: 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 31, December 23, 2019 2018 U.S. GAAP income before income taxes $ 586,049 $ 659,730 U.S. GAAP income tax expense $ 38,659 $ 90,875
Slide 21: Appendix - Reconciliation
Appendix - Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the June 2019 quarter U.S. GAAP Reconciling Items Non-GAAP Revenue $235Billion ~- $150 Million = $235Billion +/- $150 Million Gross margin as a percentage of revenue 45.4% = + 1% s 3. Million 455% = + 1% Operating income
Slide 22: Innovative Technology, Trusted Productivity, Fast Solutions
VAA Innovative Technology Trusted Productivity Fast Solutions a Waa