Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q2 FY2020 Earnings Presentation
23 slides from Lam Research's earnings presentation, Jul 29, 2020
Slide 1: June Quarter 2020 Financial Results
Lam Research Corporation June Quarter 2020 Financial Results July 29, 2020 © 2020 Lam Research Corp. | 7.29.2020 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. | 7.29.2020 3
Slide 4: Delivering Strong Performance During Unprecedented Uncertainty
Delivering Strong Performance During Unprecedented Uncertainty Demonstrated agility during COVID-19 pandemic ► Established safe and effective protocols for work in our facilities ► Ramped and stabilized supply and production capability ► Optimized our global manufacturing network ► Continue to furth
Slide 5: June 2020 Quarter Results
$2.79B 28.5% Revenue Operating Margin* June 2020 Quarter Results $813M $4.78 Cash Flows from Earnings per Share* Operations Opportunity for growth remains robust *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 presentatio
Slide 6: Industry Overview
Industry Overview Broad-based drivers of secular growth in data transport, analysis and storage Increase in NAND demand with 5G migration, video, and new game consoles 2020 WFE spending estimated in mid- to high-$50 billion range Long-term WFE investments driven by accelerating digitization of the g
Slide 7: Delivering on Growth Objectives
Delivering on Growth Objectives Record Etch P&D Performance in June Quarter ► Key wins in High Aspect Ratio Mask Open and High Aspect Ratio Contact Etch in both DRAM and NAND ► Extending leadership across both conductor and dielectric etch Disruption of markets with ALD Products ► 2 new wins for 3D
Slide 8: Delivering Innovative Services and Support
Delivering Innovative Services and Support ► Customer Support revenues grew 8% from the March quarter ► Reliant® systems business achieved eighth consecutive quarterly record revenues ► Accelerated demand for remote equipment support ► Increased adoption of machine learning-based analytics ► Results
Slide 9: Summary
Summary Delivered a strong June quarter and see continued strength ahead Positive momentum in growth objectives for installed base, served markets, and market share Well-positioned to benefit from long-term secular growth drivers © 2020 Lam Research Corp. | 7.29.2020 9
Slide 10: June Quarter 2020 Financial Results and September Quarter 2020 Outlook
June Quarter 2020 Financial Results and September Quarter 2020 Outlook Doug Bettinger Executive Vice President and Chief Financial Officer © 2020 Lam Research Corp. | 7.29.2020 10
Slide 11: June Quarter Results
June Quarter Results Revenue Earnings per Share* $4.78 $2.79 $2.50 $3.98 Revenue ($B) EPS ($) Revenue Revenue QJun'20 QMar'20 QJun'20 QMar'20 *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 Res
Slide 12: June Quarter Revenue Mix
June Quarter Revenue Mix ► Increases in Memory investments; Foundry strength continued System Revenue Segments * Revenue by Region Europe 3% Logic/Other SEA 5% 10% US 7% Japan China NVM Foundry Revenue 8% Revenue 34% 45% 29% Taiwan 11% DRAM Korea Memory 32% 16% 61% NVM = Non-Volatile Memory * System
Slide 13: Customer Support Business Group Revenues
Customer Support Business Group Revenues Quarter Performance Fiscal Year Performance $927 $3,420 $856 $3,202 Revenue ($M) Revenue ($M) Revenue Revenue QJun'20 QMar'20 FY 2020 FY 2019 Customer Support Business Group = CSBG © 2020 Lam Research Corp. | 7.29.2020 13
Slide 14: June Quarter Financial Results
June Quarter Financial Results Q Jun’20 Q Mar’20 Revenue $2,792M $2,504M Non-GAAP Gross Margin* 46.1% 46.3% Non-GAAP Operating Expenses* $493M $486M Non-GAAP Operating Income* $795M $673M Non-GAAP Operating Income as a percentage of Revenue* 28.5% 26.9% Non-GAAP Other Expense, Net* $33M $30M U.S. GA
Slide 15: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Jun’20 Q Mar’20 Total Consolidated Gross Cash Balance $6,964M $5,647M Account Receivables, Net $2,097M $2,191M DSO 68 Days 80 Days Inventory Turns 3.2 3.2 Deferred Revenue* $537M $726M Capital Expenditures $51M $51M Equity Compensation Expense $53M $47M Amor
Slide 16: September 2020 Quarter Guidance
September 2020 Quarter Guidance $3.1B $200M 29.5% 1% Revenue Non-GAAP Operating Margin 46.5% 1% $5.15 $0.40 Non-GAAP Non-GAAP Gross 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
Slide 17: Questions and Answers
Questions and Answers © 2020 Lam Research Corp. | 7.29.2020 17
Slide 18: 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 28, March 29, 2020 2020 U.S. GAAP net income $ 696,673 $ 574,781 Pre-tax non-GAAP items: Amortization related to intangible assets acquire
Slide 19: 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 June 28, March 29, 2020 2020 U.S. GAAP gross margin $ 1,280,
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other Expense, Net to Non-GAAP Other Expense, Net (in thousands) (unaudited) Three Months Ended June 28, March 29, 2020 2020 U.S. GAAP Other expense, net $ (7,553) $ (64,619) Pre-tax non-GAAP items: Amortization of note discounts 935 953 (Gain) l
Slide 21: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands) (unaudited) Three Months Ended June 28, March 29, 2020 2020 U.S. GAAP income before income taxes $ 748,169 $ 629,495 U.S. GAAP income tax benefit $ 51,496 $ 54,714 U.S. GAAP income tax ra
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ending September 27, 2020 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.1 Billion +/- $200 Million — $3.1 Billion +/- $200 Million Gross margin as a percentage of revenue 46.4% +/- 1% $ 2 Million 46.5% +/- 1
Slide 23: VAA
VAA Innovative Technology Trusted Productivity Fast Solutions y NX