Slide 1: December Quarter 2019 Financial Results
Lam Research Corporation December Quarter 2019 Financial Results January 29, 2020 © 2020 Lam Research Corp. | 1.29.2020 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. | 1.29.2020 3
Slide 4: December 2019 Quarter Results
Delivering Strong Performance $2.58B 27.1% Revenue Operating Margin* December 2019 Quarter Results 45.7% $4.01 Gross Margin* 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. © 2020 Lam Res
Slide 5: Outstanding Execution in Our Product Organizations in 2019
Outstanding Execution in Our Product Organizations in 2019 Growing our revenue share of wafer fabrication equipment spend across Memory and Foundry/Logic Winning in emerging inflections for new scaling architectures, new memory technologies, and new materials Capitalizing on our installed base that
Slide 6: Technology and Productivity Leadership
Technology and Productivity Leadership Productivity Heterogeneous Process Enhancements Integration Innovation Striker® Oxide ALD Corvus® SABRE® 3D ALTUS® Improving device Reducing customer’s cost of Leading in through-silicon via performance and lowering ownership (TSV) technology cost © 2020 Lam Re
Slide 7: Innovative Installed Base Offerings
Innovative Installed Base Offerings Growing Installed Base Record installed base revenues 70,000 ~61,000 60,000 ~56,000 ~50,000 50,000 Reliant® systems business achieved ~44,000 ~40,000 record quarterly revenues Installed Base Units 40,000 30,000 20,000 Productivity upgrades and solutions up more th
Slide 8: Industry Outlook
Industry Outlook Estimating 2019 WFE in $46-47 billion range 2019 WFE increase from our prior estimate driven predominantly by foundry / logic spending Early view of 2020 WFE is in the mid-to-high $50 billion range Expecting memory and foundry / logic segments to be up year-on-year in 2020 © 2020 La
Slide 9: Extending Our Leadership
Summary Extending Our Strong financial performance in 2019 Leadership Positioned to outperform in 2020 as memory spending improves Powerful product pipeline with more innovation to come © 2020 Lam Research Corp. | 1.29.2020 9
Slide 10: December Quarter 2019 Financial Results and March Quarter 2020 Outlook
December Quarter 2019 Financial Results and March Quarter 2020 Outlook Doug Bettinger Executive Vice President and Chief Financial Officer © 2020 Lam Research Corp. | 1.29.2020 10
Slide 11: December Quarter Results
December Quarter Results ► Revenue and EPS were both above midpoint of guidance for the December quarter Revenue Earnings per Share* $4.01 $2.58 $3.18 $2.17 Revenue ($B) EPS ($) Revenue Revenue QDec'19 QSep'19 QDec'19 QSep'19 *Data are presented on a non-GAAP basis. Reconciliations of U.S. GAAP resu
Slide 12: December Quarter Revenue Mix
December Quarter Revenue Mix ► Foundry segment highest system revenue dollars in Company’s history System Revenue Segments Revenue by Region Europe 3% Logic/Other SEA 12% Korea 7% Japan 18% NVM 8% U.S. Foundry Revenue 35% 9% Revenue Taiwan 36% 26% DRAM 17% China Memory 29% 52% NVM = Non-Volatile Mem
Slide 13: December Quarter Financial Results
December Quarter Financial Results Q Dec’19 Q Sep’19 Revenue $2,584M $2,166M Non-GAAP Gross Margin* 45.7% 45.4% Non-GAAP Operating Expenses* $481M $431M Non-GAAP Operating Income* $700M $552M Non-GAAP Operating Income as a 27.1% 25.5% percentage of Revenue* Non-GAAP Other Expense, Net* $(13M) $(11M)
Slide 14: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Dec’19 Q Sep’19 Total Consolidated Gross Cash Balance $4,938M $5,845M Account Receivables, Net $2,030M $1,636M DSO 72 Days 69 Days Inventory Turns 3.7 3.2 Deferred Revenue* $411M $481M Capital Expenditures $62M $39M Equity Compensation Expense $46M $43M Amor
Slide 15: March 2020 Quarter Guidance
March 2020 Quarter Guidance $2.80B $200M 28.0% 1% Revenue Non-GAAP Operating Margin 46.5% 1% $4.55 $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 a d
Slide 16: Questions and Answers
Questions and Answers © 2020 Lam Research Corp. | 1.29.2020 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) Twelve Months Three Months Ended Ended December 29, September 29, June 30, March 31, December 29, 2019 2019 2019 2019 2019 U.S. GAAP net income $ 514,510 $ 465,78
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 December 29, September 29, 2019 2019 U.S. GAAP gross margin
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other Expense, Net to Non-GAAP Other Expense, Net (in thousands) (unaudited) Three Months Ended December 29, September 29, 2019 2019 U.S. GAAP Other expense, net $ (13,924) $ (12,728) Pre-tax non-GAAP items: Amortization of note discounts 1,158 1
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 December 29, September 29, 2019 2019 U.S. GAAP income before income taxes $ 672,587 $ 524,727 U.S. GAAP income tax expense $ 158,077 $ 5
Slide 21: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended March 29, 2020 U.S. GAAP Reconciling Items Non-GAAP Revenue $2.8 Billion +/- $200 Million — $2.8 Billion +/- $200 Million Gross margin as a percentage of revenue 46.4% +/- 1% $ 2 Million 46.5% +/- 1% Ope
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Calculation of Free Cash flows (in thousands) (unaudited) U.S. GAAP net cash provided by operating activities for the quarter ended: March 31, 2019 $ 932,821 June 30, 2019 880,487 September 29, 2019 464,047 December 29, 2019 307,928 U.S. GAAP cash used for capital expenditu
Slide 23: Innovative Technology, Trusted Productivity, Fast Solutions
VAA Innovative Technology Trusted Productivity Fast Solutions y NX