Slide 1: Lam Research Corporation March Quarter 2018 Financial Results
Lam Research Corporation March Quarter 2018 Financial Results April 17, 2018 © 2018 Lam Research Corp. | 4.17.2018 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 Martin Anstice Chief Executive Officer © 2018 Lam Research Corp. | 4.17.2018 3
Slide 4: Record March Quarter Results
Record March Quarter Results ► QMar’18 revenues, gross margin dollars*, and non-GAAP EPS* at new record levels ► QMar’18: Shipments exceed $3B for first time in Lam’s history Including June quarter, YoY revenue growth in 23 out of last 24 quarters *Data are presented on a non-GAAP basis. Reconciliat
Slide 5: Execution Momentum Continues
Execution Momentum Continues ► On track to grow SAM* over 40% by 2021 ► QMar’18 illustrative application wins 2 dielectric etch applications in DRAM & NAND 1 advanced etch win in a new NVM* application ► Solid momentum with our deposition portfolio Shipped 500th VECTOR Strata PECVD product ► C
Slide 6: Healthy 2018 Outlook for WFE and Lam Research
Healthy 2018 Outlook for WFE and Lam Research ► Customer investments remain demand-led and responsive to long- term trends in content growth ► WFE on track to grow low double digits in CY’18 ► Anticipate 2018 1H/2H shipments biased to be low 50s/high 40s, with relatively more balance to revenues hal
Slide 7: March Quarter 2018 Financial Results and June Quarter 2018 Outlook
March Quarter 2018 Financial Results and June Quarter 2018 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer © 2018 Lam Research Corp. | 4.17.2018 7
Slide 8: March Quarter Results
March Quarter Results ► Record levels for shipments, revenue, earnings per share*, operating income dollars* and cash from operations in the quarter Shipments Revenue EPS* $3.1 $2.9 $4.79 $2.6 $4.34 $2.6 $ Billions $ Billions QDec'17 QMar'18 QDec'17 QMar'18 QDec'17 QMar'18 Solid financial performanc
Slide 9: March Quarter Shipments
March Quarter Shipments ► QMar’18 shipments of $3.135 billion, a 19% increase quarter over quarter ► System shipments segment mix: Mar’18 Dec’17 Logic/Other Logic/Other 6% 8% Foundry 10% Foundry 15% NVM Memory NVM Memory DRAM 84% 53% 77% 27% 57% DRAM 24% © 2018 Lam Research Corp. | 4.17.2018 9
Slide 10: March Quarter Financial Results
March Quarter Financial Results Mar’18 Dec’17 Revenue $2,892M $2,581M Non-GAAP Gross Margin* 46.8% 47.6% Non-GAAP Operating Expenses* $486M $449M Non-GAAP Operating Income* $867M $779M Non-GAAP Operating Margin* 30.0% 30.2% Non-GAAP Other Income/(Expense)* ($6.3M) $0.3M Non-GAAP Tax Rate* 1% -1% GAA
Slide 11: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Mar’18 Dec’17 Total Consolidated Gross Cash Balance $6,742M $5,956M Account Receivables, Net $2,083M $2,279M DSO 66 Days 80 Days Inventory Turns 3.7 3.6 Deferred Revenue* $1,114M $1,114M Capital Expenditures $49M $85M Equity Compensation Expense $41M $42M Amor
Slide 12: June 2018 Quarter Non-GAAP Guidance
June 2018 Quarter Non-GAAP Guidance Jun’18 Guidance Shipments $3.000 billion ± $150 million Revenue $3.100 billion ± $150 million Non-GAAP Gross Margin 47.5% ± 1% Non-GAAP Operating Margin 31.0% ± 1% Non-GAAP Earnings per Share* $5.00 ± $0.20 Reconciliations of U.S. GAAP results to non-GAAP results
Slide 13: Questions & Answers
Questions & Answers © 2018 Lam Research Corp. | 4.17.2018 13
Slide 14: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net (Loss) Income to Non-GAAP Net Income and U.S. GAAP number of dilutive shares to Non-GAAP number of dilutive shares (in thousands, except per share data) (unaudited) Three Months Ended March 25, December 24, 2018 2017 U.S. GAAP net income (los
Slide 15: 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 25, December 24, 2018 2017 U.S. GAAP gross margin $ 1,
Slide 16: 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 25, December 24, 2018 2017 U.S. GAAP Other expense, net $ (55,810) $ (3,152) Pre-tax non-GAAP items: Amortization of note disc
Slide 17: 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 25, December 24, 2018 2017 U.S. GAAP income before income taxes $ 771,701 $ 734,219 U.S. GAAP income tax (benefit) expense $ (7,09
Slide 18: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the June 2018 quarter (unaudited) The information provided above is only an estimate of what the Company believes is realizable as of the date of this release, and does not incorporate the potential impact of any business
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of Deferred Revenue (in millions) (unaudited) Three Months Ended March 25, December 24, 2018 2017 Beginning Balance $ 1,114.3 $ 937.9 Shipments 3,134.7 2,631.7 Revenue (2,892.1) (2,580.8) Net Change in Japan (1) (236.6) 55.3 Services & Other (6.4) 70.2 Ending
Slide 20: Innovative Trusted Fast
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