Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q2 FY2014 Earnings Presentation
22 slides from Lam Research's earnings presentation, Jul 30, 2014
Slide 1: June Quarter 2014 Financial Results
Lam Research Corporation June Quarter 2014 Financial Results July 30, 2014 Lam Research Corp. | 07.30.2014 1
Slide 2: Cautions Regarding Forward-Looking Statements
Cautions Regarding Forward-Looking Statements Statements made in this presentation that are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Forward- looking statements rela
Slide 3: Business Review and Industry Outlook
Business Review and Industry Outlook Martin Anstice President & Chief Executive Officer Lam Research Corp. | 07.30.2014 3
Slide 4: Another Quarter of Strong Execution
Another Quarter of Strong Execution Strong Financial Results ► Above mid-point of guided ranges across all metrics for the June quarter ► Record revenues in each successive quarter through FY’14 Profitable Growth ► Operating income growth outpaced revenue growth by 2X for the June quarter and the 20
Slide 5: Industry Outlook
Industry Outlook ► Maintaining 2014 WFE spend forecast of $32B ± $1B ► Second-half balance with first-half view holds NAND — Investment focused on 16 nm and below planar conversions and initial 3D NAND capacity — Planar investments continue to be the majority of 2014 spend DRAM — Investment focu
Slide 6: Momentum at the Inflections
Momentum at the Inflections ► Investment at the inflections will approach one third of total WFE in 2015 ► Tracking to market share >50% at the inflections across the product portfolio ► Momentum driven by investing in long-term growth with strong focus on collaborations ► We are executing to meet o
Slide 7: Achieving Outperformance in 2014 and Beyond
Achieving Outperformance in 2014 and Beyond ► Second-half 2014 highlights: Focusing on the significant number of equipment selection decisions outstanding Targeting 20% - 25% year-over-year revenue growth Potential to deliver ~$1B in cash from operations for the calendar year ► Vision to grow
Slide 8: June Quarter 2014 Financial Results and September Quarter 14 Outlook
June Quarter 2014 Financial Results and September Quarter 2014 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer Lam Research Corp. | 07.30.2014 8
Slide 9: June Quarter Results Bring a Strong Finish to FY'14
June Quarter Results Bring a Strong Finish to FY’14 ► Record levels of revenues and operating income in FY’14 Four consecutive quarters of record revenue through the fiscal year Operating income more than doubled year-over-year ► June quarter performance Operating income grew at approximately
Slide 10: June Quarter Shipments
June Quarter Shipments ► Shipments of $1.160 billion ► System shipments segment mix: June 2014 March 2014 Logic/Other Logic/Other 11% Memory 6% Memory NAND (59%) (66%) Foundry 20% Foundry 28% NAND 36% 30% DRAM 39% DRAM 30% Lam Research Corp. | 07.30.2014 10
Slide 11: June Quarter Financial Results
June Quarter Financial Results Jun’14 Mar’14 Revenue $1,249M $1,227M Non-GAAP Gross Margin* 46.4 % 45.5 % Non-GAAP Operating Expenses* $322M $311M Non-GAAP Operating Income* $258M $248M Non-GAAP Operating Margin* 20.6% 20.2% Non-GAAP Other Income/(Expense)* ($1.2M) ($1.4M) Non-GAAP Tax Rate* 15% 12%
Slide 12: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Jun’14 Mar’14 Total Consolidated Gross Cash Balance $3,212M $2,898M Account Receivables, Net $801M $818M DSO 58 Days 61 Days Inventory Turns 3.7 3.9 Deferred Revenue* $362M $432M Capital Expenditures $42M $42M Equity Compensation Expense $33M $24M Amortization
Slide 13: September 2014 Quarter Non-GAAP Guidance
September 2014 Quarter Non-GAAP Guidance Sep’14 Guidance Shipments $1.110 billion ± $50 million Revenue $1.150 billion ± $50 million Non-GAAP Gross Margin 45.5% ± 1% Non-GAAP Operating Margin 17.5% ± 1% Non-GAAP Earnings per Share(1) $0.92 ± $0.07 (1) Based on a share count of ~177 million shares La
Slide 14: Questions & Answers
Questions & Answers Lam Research Corp. | 07.30.2014 14
Slide 15: VAA
VAA INNOVATIVE TECHNOLOGY TRUSTED PRODUCTIVITY FAST SOLUTIONS Alam .
Slide 16: 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 Three Months Ended June 29, March 30, 2014 2014 U.S. GAAP gr
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 Three Months Ended June 29, March 30, 2014 2014 U.S. GAAP net income $ 233,395 $ 164,396 Pre-tax non-GAAP items: Amortization related to intang
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 June 29, March 30, 2014 2014 U.S. GAAP other expense, net $ (9,442) $ (9,855) Pre-tax non-GAAP items: Amortization of convertible note discount, Lam n
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 June 29, March 30, 2014 2014 U.S. GAAP income (loss) before income taxes $ 289,498 $ 182,082 U.S. GAAP income tax expense (benefit) $ 56
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation LAM RESEARCH CORPORATION RECONCILIATION OF DEFERRED REVENUE (in millions) (unaudited) Three Three Months Months Ended Ended Jun 29 Mar 30 2014 2014 Beginning Balance 431.5 405.0 Shipments 1,160.3 1,263.8 Revenue (1,248.8) (1,227.4) Net Change in Japan (1) 22.7 (3.2) Service
Slide 21: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the September 2014 Quarter (unaudited) Reconciling GAAP Items Non-GAAP Shipments $1.11 Billion +/- $50 Million - $1.11 Billion +/- $50 Million Revenue $1.15 Billion +/- $50 Million - $1.15 Billion +/- $50 Million Gross ma
Slide 22: VAA
VAA INNOVATIVE TECHNOLOGY TRUSTED PRODUCTIVITY FAST SOLUTIONS Alam .