Slide 1: Lam Research Corporation March quarter 2023 financial results
Lam Research Corporation March quarter 2023 financial results April 19, 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: A global leader in wafer fabrication equipment and services since 1980
$19.0B $1.7B ~18,700 REVENUE* R&D* EMPLOYEES A s of Marc h 26, 2023 10 PRIMARY LOCATIONS + Fremont, CA + Livermore, CA + Sherwood, OR + Tualatin, OR + Springfield, OH + Eaton, OH + Villach, Austria + Gyeonggi-do, Korea + Taoyuan City, Taiwan + Batu Kawan, Malaysia A global leader in wafer fabricatio
Slide 4: Business review & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 5: March quarter performance
Revenue of $3.87B and EPS of $6.99 exceed midpoint of guidance range March quarter Record quarter of Foundry systems revenue with solid progress in leading-edge performance & specialty technology segments Investing in long-term technology roadmaps while managing spending and strengthening operationa
Slide 6: WFE outlook
WFE outlook CY 2023 WFE expected to be in the low to mid $70B range Additional weakness from memory customers, partially offset by domestic China-related demand across logic and memory • Memory customers limiting bit output to drive down elevated inventory • Expect memory spending down approximately
Slide 7: Rising complexity fundamental to Lam's opportunity: Patterning with EUV
Rising complexity fundamental to Lam’s opportunity Patterning with EUV Lam has a leading share position with a broadening product footprint as EUV adoption scales Our etch and deposition solutions enhance productivity by creating smooth patterns and reducing line width roughness Lam’s dry resist tec
Slide 8: Rising complexity fundamental to Lam's opportunity: Gate-all-around
Rising complexity fundamental to Lam’s opportunity Gate-all-around Complex 3D architecture plays to Lam’s strengths Close to one-billion-dollar incremental opportunity Lam’s ALD/ALE capabilities, including Argos®, Prevos®, and Selis® selective etch tools and ALD low k spacer and nitride films, are w
Slide 9: Positioned for long-term outperformance
Positioned for long-term outperformance Near-term focus on expenses and operations Prioritization of R&D investments tied to critical manufacturing inflections Installed base has grown ~40% since last downturn Strong position to outperform when WFE growth resumes LAM RESEARCH
Slide 10: March quarter 2023 financial results & June quarter 2023 outlook
March quarter 2023 financial results & June quarter 2023 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH Confidential – Limited Access and Use
Slide 11: March quarter highlights
March quarter highlights QMAR’23 REVENUE $3.87B QDec'22 revenue: $5.28B QMAR’23 DEFERRED REVENUE* $2.0B QDec'22 deferred revenue: $2.0B *Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. LAM RESEARCH Estimated
Slide 12: March quarter revenue mix
March quarter revenue mix Record level of Foundry revenue dollars System revenue segments* REVENUE BY REGION SEA Europe 4% NVM 8% China Logic/other 22% 23% 22% Japan Memory 10% 32% DRAM 9% US 16% Korea 22% Foundry Taiwan 46% 18% NVM = Non-Volatile Memory LAM RESEARCH *Systems revenue includes equipm
Slide 13: Customer Support Business Group
Customer Support Business Group QMAR’23 CSBG REVENUE $1.61B QDec'22 CSBG revenue: $1.73B QMar'22 CSBG revenue: $1.41B LAM RESEARCH Confidential – Limited Access and Use
Slide 14: March quarter financial results
March quarter financial results QMAR'23 QDEC'22 Revenue $3,870M $5,278M Non-GAAP gross margin* 44.0% 45.1% Non-GAAP operating expenses* $608M $686M Non-GAAP operating income* $1,097M $1,695M Non-GAAP operating income as a percentage of revenue* 28.3% 32.1% Non-GAAP other expense, net* $8M $38M U.S.
Slide 15: Key balance sheet and financial metrics
Key balance sheet and financial metrics QMAR'23 QDEC'22 Total consolidated gross cash balance $5,620M $4,839M Account receivables, net $3,262M $4,070M DSO 77 days 70 days Inventories $4,882M $4,820M Inventory turns 1.9 2.4 Deferred revenue* $2,003M $1,984M Capital expenditures $119M $163M Equity com
Slide 16: June 2023 quarter guidance
$3.1B +/- $300M Revenue 44.0% +/- 1% June 2023 Non-GAAP gross margin* quarter guidance 25.5% +/- 1% Non-GAAP operating margin* $5.00 +/- $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. LAM
Slide 17: Q&A
Q&A LAM RESEARCH Confidential – Limited Access and Use
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 26, December 25, 2023 2022 U.S. GAAP net income $ 814,008 $ 1,468,507 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 26, December 25, 2023 2022 U.S. GAAP gross margin $ 1,
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 March 26, December 25, 2023 2022 U.S. GAAP Other income (expense), net $ (3,331) $ (28,234) Pre-tax non-GAAP items: Amortization of
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 26, December 25, 2023 2022 U.S. GAAP income before income taxes $ 938,922 $ 1,651,928 U.S. GAAP income tax expense $ 124,914 $ 183
Slide 22: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Three Months Ended March 26, 2023 U.S. GAAP net cash provided by operating activities $ 1,726,438 U.S. GAAP cash used for capital expenditures and intangible assets $ (119,457) Total free cash flow $ 1,606,981 LAM RE
Slide 23: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended June 25, 2023 U.S. GAAP Reconciling Items Non-GAAP Revenue $3.1 Billion +/- $300 Million — $3.1 Billion +/- $300 Million Gross margin as a percentage of revenue 43.2% +/- 1% $ 26 Million 44.0% +/- 1% Ope
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