Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q2 FY2022 Earnings Presentation
25 slides from Lam Research's earnings presentation, Jan 26, 2022
Slide 1: Lam Research Corporation December quarter 2021 financial results
Lam Research Corporation December quarter 2021 financial results January 26, 2022
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 & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 4: Delivered record revenue and EPS in calendar year 2021
Delivered record revenue and EPS in calendar year 2021 Revenue records in Market share gains in December quarter all market segments etch and deposition results impacted by and every sub- unexpected supply segment of CSBG chain delays EPS = earnings per share LAM RESEARCH EPS calculated on a non-GAA
Slide 5: Continued growth in WFE spending
Continued growth in WFE spending Calendar year 2021 WFE of mid-$80 billion consistent with prior commentary Growth from powerful end-demand, rising device complexity, strong semiconductor industry profitability, and regional government support Technology landscape continues to build with drivers suc
Slide 6: CSBG continues to exceed expectations
CSBG continues to exceed expectations GROWING INSTALLED BASE UNITS Large and growing installed base key to ~75,000 our product innovation process ~66,000 ~61,000 Calendar year 2021 ending chamber count of ~56,000 ~75,000 units, up ~13% year-over-year ~50,000 ~44,000 Revenue per chamber grew nearly t
Slide 7: 2021 was a year of significant milestones
2021 was a year of significant milestones Vantex™ • Fastest new etch product ramp in Lam history and set to double revenue for this product in 2022 Vector® DT • Backside deposition PTOR at all 3D NAND customers for >200-layer devices Selective etch • Leading-edge wins with our selective etch, strip
Slide 8: Preparing for another outstanding period of growth
Preparing for another outstanding period of growth + Near term: Alleviate supply constraints + Product momentum + Installed-base outperformance + Tremendous WFE demand Great position for calendar year 2022 LAM RESEARCH
Slide 9: December quarter 2021 financial results & March quarter 2022 outlook
December quarter 2021 financial results & March quarter 2022 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 10: Calendar year highlights
Calendar year highlights CY 2021 REVENUE $16.5B CY 2020 revenue: $11.9B CY 2021 EARNINGS PER SHARE* $32.46 CY 2020 EPS*: $20.45 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 11: December quarter highlights
December quarter highlights Q DEC'21 REVENUE $4.23B Q Sep'21 revenue: $4.30B Q DEC'21 DEFERRED REVENUE $1.46B Q Sep'21 deferred revenue: $1.11B LAM RESEARCH
Slide 12: December quarter revenue mix
December quarter revenue mix Record level of logic/other revenue dollars System revenue segments* Revenue by region Memory 58% NVM = non-volatile memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant® product line
Slide 13: Customer Support Business Group
Customer Support Business Group Q DEC’21 CSBG REVENUE $1.49B Q Sep'21 CSBG revenue: $1.38B Q Dec'20 CSBG revenue: $1.15B 12th consecutive record Reliant® quarter LAM RESEARCH
Slide 14: December quarter financial results
December quarter financial results Q DEC'21 Q SEP'21 Revenue $4,227M $4,304M Non-GAAP Gross Margin* 46.8% 46.0% Non-GAAP Operating Expenses* $627M $586M Non-GAAP Operating Income* $1,352M $1,393M Non-GAAP Operating Income as a percentage of Revenue* 32.0% 32.4% Non-GAAP Other Income (Expense), Net*
Slide 15: Key balance sheet and financial metrics
Key balance sheet and financial metrics Q DEC'21 Q SEP'21 Total Consolidated Gross Cash Balance $5,580M $4,863M Account Receivables, Net $3,403M $3,397M DSO 73 Days 72 Days Inventories $3,074M $2,872M Inventory Turns 2.9 3.2 Deferred Revenue* $1,458M $1,110M Capital Expenditures $138M $136M Equity C
Slide 16: March 2022 quarter guidance
$4.25B +/- $300M Revenue 45.0% +/- 1% Non-GAAP gross margin March 2022 quarter guidance 29.5% +/- 1% Non-GAAP operating margin $7.45 +/- $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 LAM R
Slide 17: Q&A
Q&A LAM RESEARCH
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 December 26, September 26, 2021 2021 U.S. GAAP net income $ 1,194,830 $ 1,179,744 Pre-tax non-GAAP items: Amortization related to intangible as
Slide 19: 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 26, December 27, 2021 2020 U.S. GAAP net income $ 4,590,352 $ 2,964,134 Pre-tax non-GAAP items: Amortization related to intangible as
Slide 20: 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 December 26, September 26, 2021 2021 U.S. GAAP gross margin
Slide 21: 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 December 26, September 26, 2021 2021 U.S. GAAP Other income (expense), net $ 17,999 $ (28,857) Pre-tax non-GAAP items: Amortization
Slide 22: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Twelve Months Three Months Ended Ended March 28, June 27, September 26, December 26, December 26, 2021 2021 2021 2021 2021 U.S. GAAP net cash provided by operating activities $ 1,165,080 $ 1,435,935 $ 457,524 $ 1,440
Slide 23: 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 December 26, September 26, 2021 2021 U.S. GAAP income before income taxes $ 1,356,138 $ 1,343,376 U.S. GAAP income tax expense $ 161,308
Slide 24: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended March 27, 2022 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.25 Billion +/- $300 Million — $4.25 Billion +/- $300 Million Gross margin as a percentage of revenue 45.0% +/- 1% $ 1 Million 45.0% +/- 1% O
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