Slide 1: March Quarter 2021 Financial Results
Lam Research Corporation March Quarter 2021 Financial Results April 21, 2021 © 2021 Lam Research Corp. | 04/21/2021 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 TIM ARCHER PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 4: March Quarter 2021: Continued Growth & Momentum
March Quarter 2021: Continued Growth & Momentum March quarter Growth across Solid execution Supporting records: Revenue, systems and customer despite COVID-19 customers’ needs Cash Flow from support businesses related impacts amid strong, broad- Operations and EPS based semi demand EPS = earnings pe
Slide 5: WFE Spending Is Strong Across All Markets
WFE Spending Is Strong Across All Markets 2021 WFE spending trending above $75 billion, with strength in the second half of the calendar year Secular tailwinds such as AI, 5G and IoT continue to strengthen, driving semiconductor unit demand growth Complexity of manufacturing advanced semiconductor d
Slide 6: Lam's Differentiated Product Portfolio Key to Enabling Complex Scaling
Lam’s Differentiated Product Portfolio Key to Enabling Complex Scaling Addressing challenges of high layer Multi- count 3D NAND devices through Stacking innovations that alleviate stress, selectivity, and defectivity Enabling transition to new Gate All architectures through unique etch Around capabi
Slide 7: Winning with Holistic Approaches to High Volume Manufacturing
Winning with Holistic Approaches to High Volume Manufacturing Lowering the cost of ownership and increasing fab uptime and efficiency Sense.i™ Delivering Equipment Intelligence ® with advanced data analysis and self-maintenance capabilities Vantex™ Providing significant reductions in tool energy con
Slide 8: Another Record Quarter for Customer Support Business Group
Another Record Quarter for Customer Support Business Group March quarter revenue exceeded $1.3B Record performance from all product lines ▪ Upgrades expected to double over the two-year period ending CY 2021 ▪ Reliant driven by Specialty Technologies growth (CIS, Power, RF devices) ▪ Spares closed s
Slide 9: Positioned for Outperformance in Sustainable WFE Spending Environment
Positioned for Outperformance in Sustainable WFE Spending Environment Industry fundamentals strengthening Semiconductors reaching new heights in strategic relevance Lam is delivering great results and confident in continued outperformance © 2021 Lam Research Corp. | 04/21/2021 9
Slide 10: March Quarter 2021 Financial Results and June Quarter 2021 Outlook
March Quarter 2021 Financial Results and June Quarter 2021 Outlook DOUG BETTINGER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 11: March Quarter Highlights
March Quarter Highlights QMar’21 Revenue $3.85B QDec’20 revenue - $3.46B QMar’21 Earnings per $7.49 Share* QDec’20 EPS* - $6.03 *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. © 2021 Lam Research Corp. |
Slide 12: March Quarter Revenue Mix
March Quarter Revenue Mix Record level of foundry and NAND revenue dollars System Revenue Segments* Revenue by Region Europe Logic/Other US 7% Foundry NVM 31% 48% 48% DRAM 14% Memory 62% NVM = Non-Volatile Memory *Systems revenue includes equipment and equipment upgrade sales from etch, deposition,
Slide 13: Customer Support Business Group Revenue
Customer Support Business Group QMar’21 CSBG $1.30B Revenue QDec’20 CSBG revenue - $1.15B © 2021 Lam Research Corp. | 04/21/2021 13
Slide 14: March Quarter Financial Results
March Quarter Financial Results Q Mar'21 Q Dec'20 Revenue $3,848M $3,456M Non-GAAP Gross Margin* 46.3% 46.6% Non-GAAP Operating Expenses* $567M $563M Non-GAAP Operating Income* $1,217M $1,048M Non-GAAP Operating Income as a percentage of Revenue* 31.6% 30.3% Non-GAAP Other Expense, Net* $42M $53M U.
Slide 15: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Q Mar'21 Q Dec'20 Total Consolidated Gross Cash Balance $6,043M $6,295M Account Receivables, Net $2,809M $2,900M DSO 66 Days 76 Days Inventory Turns 3.2 3.2 Deferred Revenue* $817M $640M Capital Expenditures $90M $92M Equity Compensation Expense $56M $52M Amor
Slide 16: June 2021 Quarter Guidance
June 2021 Quarter Guidance $4.0B +/- $250M 46.5% +/- 1% Non-GAAP Revenue Gross Margin 32.0% +/- 1% $7.50 +/- $0.50 Non-GAAP Non-GAAP Operating Margin 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 *Based
Slide 17: Questions and Answers
and Answers n Cc oO Hm) n S oe
Slide 18: 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 28, December 27, 2021 2020 U.S. GAAP net income $ 1,071,121 $ 869,229 Pre-tax non-GAAP items: Amortization related to intangible assets a
Slide 19: 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 28, December 27, 2021 2020 U.S. GAAP gross margin $ 1,
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 March 28, December 27, 2021 2020 U.S. GAAP Other expense, net $ (35,320) $ (29,941) Pre-tax non-GAAP items: Amortization of note discounts 998 1,001 G
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 28, December 27, 2021 2020 U.S. GAAP income before income taxes $ 1,159,988 $ 979,783 U.S. GAAP income tax expense $ 88,867 $ 110,
Slide 22: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended June 27, 2021 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.0 Billion +/- $250 Million — $4.0 Billion +/- $250 Million Gross margin as a percentage of revenue 46.5% +/- 1% $ 1 Million 46.5% +/- 1% Oper
Slide 23: Innovative Technology, Trusted Productivity, Fast Solutions
VAA Innovative Technology Trusted Productivity Fast Solutions a Wea