Lam Research Corporation · NASDAQ:LRCX
Lam Research — Q3 2022 Earnings Presentation
23 slides from Lam Research's earnings presentation, Apr 20, 2022
Slide 1: Lam Research Corporation September quarter 2022 financial results
Lam Research Corporation September quarter 2022 financial results October 19, 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: September and December quarter takeaways
September and December quarter takeaways September quarter Solid performance December quarter guidance revenues, margins, and expected for includes impact of new EPS reflect continued December quarter China export regulations strong execution EPS = earnings per share LAM RESEARCH EPS calculated on a
Slide 5: WFE outlook
WFE outlook CY 2022 outlook in low $90B range; early view of 2023 suggests more than 20% decline from 2022 CY 2022 outlook inclusive of new China export regulations and lower demand partially offset by improving supply chain conditions Rapid deterioration in demand fundamentals, led by memory as cus
Slide 6: Lam is focused on key strategies to capitalize on structural WFE growth drivers
Ensure installed base of Lam tools is operating at maximum efficiency Lam is focused on key strategies Sustain R&D investment critical to customers’ long-term roadmaps to capitalize on structural WFE growth drivers Leverage global R&D and manufacturing infrastructure to accelerate innovation LAM RES
Slide 7: Continued strength in CSBG
Continued strength in CSBG Record CSBG revenues of ~$1.9B in September quarter + Installed base approaching 80,000 chambers; up > 30% since 2019 + Engaging with customers to find yield enhancement opportunities and on upgrades to maximize capital efficiency + Applying learnings from equipment and pr
Slide 8: Delivering on customers' technology roadmaps
Delivering on customers’ technology roadmaps + Key deposition wins at leading DRAM customer by enabling low-capacitance devices and improving lithography overlay performance + Multiple new ALD application wins in Foundry/Logic for gate-all-around structures Providing technology advancements for cust
Slide 9: Investing in our global platform
Investing in our global platform Strengthening our foundation in technology, manufacturing, and service Manufacturing R&D Engineering LAM RESEARCH
Slide 10: September quarter 2022 financial results & December quarter 2022 outlook
September quarter 2022 financial results & December quarter 2022 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 11: September quarter highlights
September quarter highlights QSEP'22 REVENUE $5.07B QJun'22 revenue: $4.64B QSEP'22 DEFERRED REVENUE* $2.75B QJun'22 deferred revenue: $2.20B *Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. LAM RESEARCH Esti
Slide 12: September quarter revenue mix
September quarter revenue mix Record level of Foundry revenue dollars System revenue segments* Revenue by region Memory 52% NVM = non-volatile memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant ® product line
Slide 13: Customer Support Business Group
Customer Support Business Group QSEP'22 CSBG REVENUE $1.89B QJun'22 CSBG revenue: $1.63B QSep'21 CSBG revenue: $1.38B LAM RESEARCH
Slide 14: September quarter financial results
September quarter financial results QSEP'22 QJUN'22 Revenue $5,074M $4,636M Non-GAAP Gross Margin* 46.0% 45.2% Non-GAAP Operating Expenses* $647M $635M Non-GAAP Operating Income* $1,688M $1,459M Non-GAAP Operating Income as a percentage of Revenue* 33.3% 31.5% Non-GAAP Other (Expense) Income, Net* $
Slide 15: Key balance sheet and financial metrics
Key balance sheet and financial metrics QSEP'22 QJUN'22 Total Consolidated Gross Cash Balance $4,628M $3,909M Account Receivables, Net $4,570M $4,314M DSO 82 Days 85 Days Inventories $4,360M $3,966M Inventory Turns 2.5 2.6 Deferred Revenue* $2,755M $2,198M Capital Expenditures $140M $126M Equity Com
Slide 16: December 2022 quarter guidance
$5.1B +/- $300M Revenue 44.5% +/- 1% December 2022 Non-GAAP gross margin* quarter guidance 31.5% +/- 1% Non-GAAP operating margin* $10.00 +/- $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 17: Q&A
Q&A LAM RESEARCH
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 September 25, June 26, 2022 2022 U.S. GAAP net income $ 1,425,879 $ 1,208,934 Pre-tax non-GAAP items: Amortization related to intangible assets
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 September 25, June 26, 2022 2022 U.S. GAAP gross margin $ 2,
Slide 20: 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 September 25, June 26, 2022 2022 U.S. GAAP Other income (expense), net $ (43,095) $ (120,448) Pre-tax non-GAAP items: Amortization o
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 September 25, June 26, 2022 2022 U.S. GAAP income before income taxes $ 1,654,745 $ 1,358,905 U.S. GAAP income tax expense $ 228,866 $ 1
Slide 22: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended December 25, 2022 U.S. GAAP Reconciling Items Non-GAAP Revenue $5.1 Billion +/- $300 Million — $5.1 Billion +/- $300 Million Gross margin as a percentage of revenue 44.5% +/- 1% $ 1 Million 44.5% +/- 1%
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