Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q2 FY2015 Earnings Presentation
24 slides from Lam Research's earnings presentation, Jul 29, 2015
Slide 1: June Quarter 2015 Financial Results
Lam Research Corporation June Quarter 2015 Financial Results July 29, 2015 Lam Research Corp. | 7.29.2015 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 relat
Slide 3: Business Review and Industry Outlook
Business Review and Industry Outlook Martin Anstice President & Chief Executive Officer Lam Research Corp. | 7.29.2015 3
Slide 4: June Quarter and FY'15 Summary
June Quarter and FY’15 Summary A record quarter concludes a successful FY’15 Net Income* ($M) ► Record levels for shipments, revenues, $1,000 and Op Inc* in the June quarter $800 $600 ► >$5B in shipments and revenue in FY’15 $400 $200 $0 ► >$1B in operating income* in FY’15 FY'14 FY'15 Capital Retur
Slide 5: Confidence in Our Ability to Continue Outperformance
Confidence in Our Ability to Continue Outperformance Focused on opportunities, collaboration, and execution Value-Enhancing Collaboration ► Ongoing strength in execution across the Explore Innovate organization, increasing customer trust Open Deliver enabling communication solutions ► Collaborating
Slide 6: 2015 Industry Outlook
2015 Industry Outlook Memory Foundry Logic Market demand driven by Leading-edge investment Sustained commitment to mobile and enterprise focused on FinFET technology conversions DRAM spend focused on 28 nm capacity Optimized reuse of conversion to 20 nm investments continue installed bas
Slide 7: $3B+ Market Expansion Opportunity Through 2018
$3B+ Market Expansion Opportunity Through 2018 Positioned for growth over a multi-year period Inflection-Based Spending ► Today’s inflections are enabled by as % of WFE deposition and etch processes ~55% ► Inflection spending expected to reach ~25% ~33% ~55% in 2018 ~10% 2013 2014 2015E 2018F ► Driv
Slide 8: June Quarter 2015 Financial Results and September Quarter 2015 Outlook
June Quarter 2015 Financial Results and September Quarter 2015 Outlook Doug Bettinger Executive Vice President & Chief Financial Officer Lam Research Corp. | 7.29.2015 8
Slide 9: June Quarter and FY'15 Results
June Quarter and FY’15 Results Multiple milestones achieved for the quarter and FY’15 ► Record levels for shipments, revenue, and operating income* ► Shipments and revenue topped $5 billion in FY’15 ► Generated >$1 billion in operating income* in FY’15 Shipments Revenue Op Inc* $5.472 $5.259 $1.033
Slide 10: June Quarter Shipments
June Quarter Shipments QJun’15 shipments above mid-point ► Shipments of $1.616 billion — Shipments up 8% quarter over quarter ► System shipments segment mix: Jun’15 Mar’15 Logic/Other Logic/Other NAND & 9% NAND NAND & 14% Other NVM Other NVM 23% 22% Memory Foundry 24% Memory Foundry 26% (60%) (67%)
Slide 11: June Quarter Financial Results
June Quarter Financial Results Jun’15 Mar’15 Revenue $1,481M $1,393M Non-GAAP Gross Margin* 45.5% 44.7% Non-GAAP Operating Expenses* $355M $345M Non-GAAP Operating Income* $319M $277M Non-GAAP Operating Margin* 21.6% 19.9% Non-GAAP Other Income/(Expense)* ($11.3M) ($2.6M) Non-GAAP Tax Rate* 16% 11%
Slide 12: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Jun’15 Mar’15 Total Consolidated Gross Cash Balance $4,247M $4,113M Account Receivables, Net $1,094M $1,047M DSO 67 Days 68 Days Inventory Turns 3.6 3.4 Deferred Revenue* $518M $485M Capital Expenditures $63M $32M Equity Compensation Expense $40M $33M Amortiza
Slide 13: September 2015 Quarter Non-GAAP Guidance
September 2015 Quarter Non-GAAP Guidance Sep’15 Guidance Shipments $1.580 billion ± $75 million Revenue $1.600 billion ± $75 million Non-GAAP Gross Margin 45.5% ± 1% Non-GAAP Operating Margin 22.5% ± 1% Non-GAAP Earnings per Share(1) $1.70 ± $0.10 (1) Based on a share count of ~174 million shares. L
Slide 14: Questions & Answers
Questions & Answers Lam Research Corp. | 7.29.2015 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 (unaudited) Three Months Ended Three Months Ended June 28, March 29, 2015 2015 U.S. GAAP gross margin $ 641,538 $ 600,602 Pre-
Slide 17: 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) Year Ended Year Ended June 28, June 29, 2015 2014 U.S. GAAP gross margin $ 2,28
Slide 18: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net 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 Three Months Ended June 28, March 29, 2015 2015 U.S. GAAP net inc
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net 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) Year Ended Year Ended June 28, June 29, 2015 2014 U.S. GAAP net income $ 655,577 $ 6
Slide 20: 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 28, March 29, 2015 2015 U.S. GAAP other expense, net $ (20,353) $ (11,389) Pre-tax non-GAAP items: Amortization of note discounts 9,019 8,749 Non
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 June 28, March 29, 2015 2015 U.S. GAAP income (loss) before income taxes $ 170,682 $ 228,576 U.S. GAAP income tax expense (benefit) $ 39
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the September 2015 Quarter (unaudited) Reconciling GAAP Items Non-GAAP Shipments $1.58 Billion +/- $75 Million - $1.58 Billion +/- $75 Million Revenue $1.60 Billion +/- $75 Million - $1.60 Billion +/- $75 Million Gross ma
Slide 23: Appendix – Reconciliation
Appendix – Reconciliation LAM RESEARCH CORPORATION RECONCILIATION OF DEFERRED REVENUE (in millions) (unaudited) Three Three Months Months Ended Ended June 28, March 29, 2015 2015 Beginning Balance $ 485.2 $ 373.7 Shipments 1,616.0 1,497.4 Revenue (1,481.4) (1,393.3) Net Change in Japan (1) (119.0) 7
Slide 24: VAA
VAA INNOVATIVE TECHNOLOGY TRUSTED PRODUCTIVITY FAST SOLUTIONS Alam .