Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q1 2022 Earnings Presentation
24 slides from Lam Research's earnings presentation, Oct 20, 2021
Slide 1: Lam Research Corporation March quarter 2022 financial results
Lam Research Corporation March quarter 2022 financial results April 20, 2022
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: March quarter takeaways
March quarter takeaways Revenue of $4.06B Continued component Lam committing and EPS of $7.40 shortages and new issues investment and resources within guidance ranges including those related to to address supply COVID lockdowns chain challenges EPS = earnings per share LAM RESEARCH EPS calculated on
Slide 5: Prioritizing supply chain resilience
Prioritizing supply chain resilience NEAR-TERM FOCUS Accelerating procurement of parts Increasing field resources to complete installs Partnering with customers to qualify additional suppliers in most severely constrained areas Confident of progressive LONG-TERM FOCUS Assigning engineering resources
Slide 6: WFE investment remains robust
WFE investment remains robust 2022 WFE view still in the $100B range, potentially limited by continued supply-related delays Unconstrained demand at over $100B Powerful long-term secular growth drivers including rising semiconductor content and increasing device complexity remain intact LAM RESEARCH
Slide 7: Lam-specific long-term growth drivers remain strong
Lam-specific long-term growth drivers remain strong + Differentiated etch and deposition equipment for manufacturing higher performance and more scalable 3D device architectures + Innovative installed base products and services + Continuing investment in an exceptional pipeline of new products and s
Slide 8: Growing Lam's technology leadership across device segments
Growing Lam’s technology leadership across device segments FOUNDRY-LOGIC DRAM Selective etch win at a large customer Etch: Leveraged foundry-logic success to drive share growth at key customer as devices adopt New conductor etch wins, set to double High K Metal Gate transistors node-to-node share at
Slide 9: CSBG expected to show strong growth in 2022
CSBG expected to show strong growth in 2022 March quarter results down modestly due to supply chain impact on Reliant® and upgrades businesses Expanding installed base over a longer period offers stable platform for revenue growth Secured spares contracts at two of the world’s largest IDMs – cumulat
Slide 10: Lam's 2022 focus
Lam’s 2022 focus Expect to post a solid year of revenue and EPS growth in CY 2022 Making progress on Committing financial Seeing continued addressing the extraordinary resources and workforce strong demand for industry supply challenges to meet critical needs of our equipment in a robust our custome
Slide 11: March quarter 2022 financial results & June quarter 2022 outlook
March quarter 2022 financial results & June quarter 2022 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: March quarter results
March quarter results Q MAR'22 REVENUE $4.06B Q Dec'21 revenue: $4.23B Q MAR'22 DEFERRED REVENUE $2.07B Q Dec'21 deferred revenue: $1.46B LAM RESEARCH
Slide 13: March quarter revenue mix
March quarter revenue mix Record level of DRAM and Logic/Other revenue dollars System revenue segments* Revenue by region Memory 66% NVM = non-volatile memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant ® product line
Slide 14: Customer Support Business Group
Customer Support Business Group Q MAR'22 CSBG REVENUE $1.41B Q Dec'21 CSBG revenue: $1.49B Q Mar'21 CSBG revenue: $1.30B LAM RESEARCH
Slide 15: March quarter financial results
March quarter financial results Q MAR'22 Q DEC'21 Revenue $4,060M $4,227M Non-GAAP Gross Margin* 44.7% 46.8% Non-GAAP Operating Expenses* $621M $627M Non-GAAP Operating Income* $1,194M $1,352M Non-GAAP Operating Income as a percentage of Revenue* 29.4% 32.0% Non-GAAP Other (Expense) Income, Net* $(4
Slide 16: Key balance sheet and financial metrics
Key balance sheet and financial metrics Q MAR'22 Q DEC'21 Total Consolidated Gross Cash Balance $4,606M $5,580M Accounts Receivable, Net $3,702M $3,403M DSO 83 Days 73 Days Inventories $3,479M $3,074M Inventory Turns 2.6 2.9 Deferred Revenue* $2,069M $1,458M Capital Expenditures $145M $138M Equity C
Slide 17: June 2022 quarter guidance
$4.20B +/- $300M Revenue 44.5% +/- 1% June 2022 Non-GAAP gross margin quarter guidance 29.5% +/- 1% Non-GAAP operating margin $7.25 +/- $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 RE
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 March 27, December 26, 2022 2021 U.S. GAAP net income $ 1,021,778 $ 1,194,830 Pre-tax non-GAAP items: Amortization related to intangible assets
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 March 27, December 26, 2022 2021 U.S. GAAP gross margin $ 1,
Slide 21: 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 27, December 26, 2022 2021 U.S. GAAP Other income (expense), net $ (57,402) $ 17,999 Pre-tax non-GAAP items: Amortization of n
Slide 22: 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 27, December 26, 2022 2021 U.S. GAAP income before income taxes $ 1,134,695 $ 1,356,138 U.S. GAAP income tax expense $ 112,917 $ 1
Slide 23: Appendix – reconciliation of guidance
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended June 26, 2022 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.20 Billion +/- $300 Million — $4.20 Billion +/- $300 Million Gross margin as a percentage of revenue 44.5% +/- 1% $ 1 Million 44.5% +/- 1% Op
Slide 24: Slide 24