Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q3 2024 Earnings Presentation
23 slides from Lam Research's earnings presentation, Apr 24, 2024
Slide 1: Lam Research Corporation March quarter 2024 financial results
Lam Research Corporation March quarter 2024 financial results April 24, 2024
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: Strong execution drives March quarter performance
Strong execution drives March quarter performance QMAR’24 REVENUE $3.79B QMAR’24 EARNINGS PER SHARE* $7.79 *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. LAM RESEARCH
Slide 5: CY 2024 WFE low to mid $90Bs
CY 2024 WFE low to mid $90Bs Modest increase to WFE vs prior view primarily driven by additional litho shipments into China No meaningful change to Lam’s overall CY 2024 revenue profile expectations DRAM: Strong demand with investments tied to HBM and sustained investment in domestic China Foundry/l
Slide 6: Powerful growth drivers
Powerful growth drivers In early stages of AI Significant investment Winners will accelerate transformation in in semiconductor technology consumer and manufacturing capacity advancement while enterprise required disrupting cost and complexity of fabrication LAM RESEARCH AI = Artificial Intelligence
Slide 7: Lam is a key player in enabling the AI era
Lam is a key player in enabling the AI era NAND DRAM Foundry/Logic Enabling technologies critical for SABRE® 3D & Syndion® tools help Our Selective etch and ALD tools performance and cost scaling lower costs for customers enable FinFET to GAA transition ALD = Atomic Layer Deposition LAM RESEARCH F
Slide 8: Positioned to outperform in the next leg of industry growth
Strong semiconductor demand backdrop Positioned to Rising device complexity and outperform in localized chip manufacturing the next leg of industry growth Lam accelerating cycles of learning LAM RESEARCH
Slide 9: March quarter 2024 financial results & June quarter 2024 outlook
March quarter 2024 financial results & June quarter 2024 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 10: March quarter highlights
March quarter highlights QMAR'24 REVENUE $3.79B QDec'23 revenue: $3.76B QMAR'24 EARNINGS PER SHARE* $7.79 QDec'23 earnings per share*: $7.52 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: March quarter revenue mix
March quarter revenue mix SYSTEMS REVENUE SEGMENT* REVENUE BY REGION Memory 44% NVM = Non-Volatile Memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant ® product line
Slide 12: Customer Support Business Group
Customer Support Business Group QMAR'24 CSBG REVENUE $1.40B QDec'23 CSBG revenue: $1.46B QMar'23 CSBG revenue: $1.61B LAM RESEARCH
Slide 13: March quarter financial results
March quarter financial results QMAR'24 QDEC'23 Revenue $3,794M $3,758M Non-GAAP Gross Margin* 48.7% 47.6% Non-GAAP Operating Expenses* $698M $662M Non-GAAP Operating Income* $1,150M $1,128M Non-GAAP Operating Income as a percentage of Revenue* 30.3% 30.0% Non-GAAP Other Income (Expense), Net* $10M
Slide 14: Key balance sheet and financial metrics
Key balance sheet and financial metrics QMAR'24 QDEC'23 Total Consolidated Gross Cash Balance $5,674M $5,640M Account Receivables, Net $2,204M $2,707M Days sales outstanding 57 Days 66 Days Inventories $4,323M $4,430M Inventory Turns 1.8 1.8 Deferred Revenue* $1,746M $1,928M Capital Expenditures $10
Slide 15: June 2024 quarter guidance
$3.8B +/- $300M Revenue 47.5% +/- 1% June 2024 Non-GAAP gross margin* quarter guidance 29.5% +/- 1% Non-GAAP operating margin* $7.50 +/- $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 16: Q&A
Q&A LAM RESEARCH
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 March 31, December 24, 2024 2023 U.S. GAAP net income $ 965,826 $ 954,266 Pre-tax non-GAAP items: Amortization related to intangible assets acq
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 March 31, December 24, 2024 2023 U.S. GAAP gross margin $ 1,
Slide 19: 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 31, December 24, 2024 2023 U.S. GAAP Other income (expense), net $ 36,073 $ 29,839 Pre-tax non-GAAP items: Amortization of not
Slide 20: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2024 U.S. GAAP net cash provided by operating activities $ 1,384,836 U.S. GAAP cash used for capital expenditures and intangible assets (103,654) Total free cash flow $ 1,281,182 LAM RESE
Slide 21: 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 31, December 24, 2024 2023 U.S. GAAP income before income taxes $ 1,093,185 $ 1,087,051 U.S. GAAP income tax expense $ 127,359 $ 1
Slide 22: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended June 30, 2024 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.8 Billion +/- $300 Million — $3.8 Billion +/- $300 Million Gross margin as a percentage of revenue 46.7% +/- 1% $ 30 Million 47.5% +/- 1% Ope
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