Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q4 2023 Earnings Presentation
25 slides from Lam Research's earnings presentation, Jul 26, 2023
Slide 1: Lam Research Corporation June quarter 2023 financial results
Lam Research Corporation June quarter 2023 financial results July 26, 2023
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 June quarter performance
Revenue of $3.21B and EPS of $5.98; profitability metrics above guided ranges Strong CSBG at 47% of revenues, a key area June quarter of strength and stability in a weak WFE environment performance Executing on operational initiatives to deliver greater predictability and position Lam for future WFE
Slide 5: WFE outlook
WFE outlook CY 2023 WFE tracking to mid $70B range Seeing further upside from domestic China-related spending and growth in high bandwidth memory (HBM) demand Expect overall memory to be down in the mid-40% range year-over-year Non-memory expected to be down approximately 10% Continue to see second
Slide 6: AI fundamental to driving increased semi investments
AI fundamental to driving increased semi investments Advanced AI creates opportunity for Lam Advanced AI servers have significantly higher leading-edge logic, memory, and storage content Every incremental 1% penetration of AI servers in data centers expected to add $1B to $1.5B of additional WFE inv
Slide 7: Packaging vital to enabling logic/memory integration
Packaging vital to enabling logic/memory integration Lam’s advanced packaging leadership >50% market share in deposition and etch solutions for enabling advanced 3D HBM stacking 100% market share for SABRE® 3D and Syndion® systems across leading memory customers for TSV formation Expect our packagin
Slide 8: Strengthening market position in advanced packaging
Strengthening market position in advanced packaging Chiplet architecture: Inter-die gapfill Win in June quarter at a key foundry-logic customer to drive leading share position for this application across top 3 foundry-logic customers Higher productivity results by leveraging our unique architecture
Slide 9: Expanding R&D into advanced packaging and specialty
Expanding R&D into advanced packaging and specialty New applications New applications Die-to-wafer hybrid bonding Advanced etching for GaN devices + Extending existing product portfolio to enable new + Extending atomic layer etch solutions in manufacturing die-to-wafer hybrid bonding approach with o
Slide 10: Positioned for innovation and outperformance
Positioned for innovation and outperformance Lam is executing a competitively differentiated strategy We are addressing rising complexity across technology, customer support, and sustainability vectors Lam’s Semiverse™ Solutions portfolio enables faster processing, lower cost products, and global co
Slide 11: June quarter 2023 financial results & September quarter 2023 outlook
June quarter 2023 financial results & September quarter 2023 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: June quarter highlights
June quarter highlights QJUN'23 REVENUE $3.21B QMar'23 revenue: $3.87B QJUN'23 EARNINGS PER SHARE* $5.98 QMar'23 earnings per share*: $6.99 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 13: June quarter revenue mix
June quarter revenue mix Record level of systems revenue concentration in logic/other SYSTEM REVENUE SEGMENTS* REVENUE BY REGION SEA NVM Europe 4% 18% 8% Logic/other China 26% Memory 26% 27% US 8% DRAM 9% Japan 10% Korea Taiwan 24% 20% Foundry 47% NVM = non-volatile memory LAM RESEARCH *Systems reve
Slide 14: June quarter highlights: CSBG revenue
June quarter highlights QJUN'23 CSBG REVENUE $1.50B QMar'23 CSBG revenue: $1.61B QJun'22 CSBG revenue: $1.63B LAM RESEARCH
Slide 15: June quarter financial results
June quarter financial results QJUN'23 QMAR'23 Revenue $3,207M $3,870M Non-GAAP gross margin* 45.7% 44.0% Non-GAAP operating expenses* $590M $608M Non-GAAP operating income* $875M $1,097M Non-GAAP operating income as a percentage of revenue* 27.3% 28.3% Non-GAAP other expense, net* $7M $8M U.S. GAAP
Slide 16: Key balance sheet and financial metrics
Key balance sheet and financial metrics QJUN'23 QMAR'23 Total consolidated gross cash balance $5,625M $5,620M Account receivables, net $2,823M $3,262M DSO 80 days 77 days Inventories $4,816M $4,882M Inventory turns 1.5 1.9 Deferred revenue* $1,838M $2,003M Capital expenditures $79M $119M Equity comp
Slide 17: September 2023 quarter guidance
$3.4B +/- $300M Revenue 46.5% +/- 1% September 2023 Non-GAAP gross margin* quarter guidance 28.0% +/- 1% Non-GAAP operating margin* $6.05 +/- $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.
Slide 18: Q&A
Q&A LAM RESEARCH
Slide 19: 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 June 25, March 26, 2023 2023 U.S. GAAP net income $ 802,537 $ 814,008 Pre-tax non-GAAP items: Amortization related to intangible assets acquire
Slide 20: 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 June 25, March 26, 2023 2023 U.S. GAAP gross margin $ 1,458,
Slide 21: 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 25, March 26, 2023 2023 U.S. GAAP Other income (expense), net $ 9,010 $ (3,331) Pre-tax non-GAAP items: Amortization of note discounts 724 718 Ga
Slide 22: Appendix – calculation of free cash flows
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Three Months Ended June 25, 2023 U.S. GAAP net cash provided by operating activities $ 1,122,725 U.S. GAAP cash used for capital expenditures and intangible assets (78,670) Total free cash flow $ 1,044,055 LAM RESEAR
Slide 23: 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 25, March 26, 2023 2023 U.S. GAAP income before income taxes $ 863,615 $ 938,922 U.S. GAAP income tax expense $ 61,078 $ 124,914 U.
Slide 24: Appendix – reconciliation of guidance
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the Quarter Ended September 24, 2023 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.4 Billion +/- $300 Million — $3.4 Billion +/- $300 Million Gross margin as a percentage of revenue 45.9% +/- 1% $ 21 Million 46.5% +/- 1
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