Slide 1: Lam Research Corporation September quarter 2024 financial results
Lam Research Corporation September quarter 2024 financial results October 23, 2024
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
$14.9B $1.9B ~17,700 REVENUE* R&D* EMPLOYEES As of Septem ber 29, 2024 14 PRIMARY LOCATIONS + Fremont, CA + Livermore, CA + Sherwood, OR + Tualatin, OR + Springfield, OH + Yongin, Korea + Eaton, OH + Hsinchu City, Taiwan + Villach, Austria + Taoyuan City, Taiwan + Hwaseong-si, Korea + Bengaluru, Ind
Slide 4: Business review & industry outlook
Business review & industry outlook Tim Archer President and Chief Executive Officer LAM RESEARCH
Slide 5: Continued strong execution
Continued strong execution September quarter revenue, CY 2024 WFE at mid-$90B Early view of WFE EPS* above guidance range; Lam China share growth in CY 2025 midpoints; profitability* of revenues in the 30% above high end of ranges range in QDec’24 EPS = Earnings per share WFE = Wafer fabrication equ
Slide 6: Lam positioned to outperform WFE growth
Etch and Deposition are fundamental enablers of higher performance, more scalable semi device architectures Lam positioned to outperform Spending recovery in NAND expected WFE growth to be driven by technology upgrades in CY 2025 Strong positioning in the major inflections: GAA, Backside Power Deliv
Slide 7: NAND growth driven by layer upgrades and Moly transition
NAND growth driven by layer upgrades and Moly transition Advanced nodes critical to meeting high-speed and high-capacity storage requirements at lower costs More than two-thirds of today’s production bits in sub-200 layer technologies Lam should benefit disproportionately in tech conversions Materia
Slide 8: Building momentum at key inflections in Foundry/Logic and DRAM
Building momentum at key inflections in Foundry/Logic and DRAM GATE-ALL-AROUND ADVANCED EUV PATTERNING Recent selective etch wins at large Broader adoption at key customers Foundry/Logic customer with latest conductor etch tool incorporating DirectDrive® technology BACKSIDE POWER ADVANCED PACKAGING
Slide 9: CSBG: Delivering innovation
CSBG: Delivering innovation Increased focus on lowering per-bit costs driving memory customers to improve efficiency of existing tools Lam upgrades recently provided customers better value than competitor’s new build alternatives Greater adoption of Lam’s Equipment Intelligence® services – additiona
Slide 10: The best is yet to come for Lam
The best is yet to come for Lam AI era driving more Transformed our Our investments are opportunities for Lam business and expanded in the early stages our product portfolio of paying off LAM RESEARCH AI = Artificial intelligence
Slide 11: September quarter 2024 financial results & December quarter 2024 outlook
September quarter 2024 financial results & December quarter 2024 outlook Doug Bettinger Executive Vice President and Chief Financial Officer LAM RESEARCH
Slide 12: September quarter highlights
September quarter highlights QSEP'24 REVENUE $4.17B QJUN'24 REVENUE: $3.87B QSEP'24 EARNINGS PER SHARE* $0.86 QJUN'24 EARNINGS PER SHARE*: $0.81 LAM RESEARCH *Data is presented on a non-GAAP and post-split basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of thi
Slide 13: September quarter revenue mix
September quarter revenue mix SYSTEMS REVENUE SEGMENT* REVENUE BY REGION NVM Europe Memory SEA 5% 11% Logic/other 35% 6% 24% Japan 7% China 37% DRAM 24% US 12% Taiwan 15% Foundry Korea 41% 18% NVM = Non-volatile memory LAM RESEARCH *Systems revenue includes equipment and equipment upgrade sales from
Slide 14: Customer Support Business Group
Customer Support Business Group QSEP'24 CSBG REVENUE $1.78B QJUN'24 CSBG REVENUE: $1.70B QSEP'23 CSBG REVENUE: $1.43B LAM RESEARCH
Slide 15: September quarter financial results
September quarter financial results QSEP'24 QJUN'24 Revenue $4,168M $3,872M Non-GAAP Gross Margin* 48.2% 48.5% Non-GAAP Operating Expenses* $722M $689M Non-GAAP Operating Income* $1,287M $1,187M Non-GAAP Operating Income as a percentage of Revenue* 30.9% 30.7% Non-GAAP Other Income (Expense), Net* $
Slide 16: Key balance sheet and financial metrics
Key balance sheet and financial metrics QSEP'24 QJUN'24 Total Consolidated Gross Cash Balance $6,072M $5,851M Account Receivables, Net $2,937M $2,519M Days sales outstanding 64 Days 59 Days Inventories $4,210M $4,218M Inventory Turns 2.1 1.9 Deferred Revenue* $2,047M $1,552M Capital Expenditures $11
Slide 17: December 2024 quarter guidance
$4.3B +/- $300M Revenue 47.0% +/- 1% December 2024 Non-GAAP gross margin* quarter guidance 30.0% +/- 1% Non-GAAP operating margin* $0.87 +/- $0.10 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 L
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 September 29, June 30, 2024 2024 U.S. GAAP net income $ 1,116,444 $ 1,020,282 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 September 29, June 30, 2024 2024 U.S. GAAP gross margin $ 2,
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 September 29, June 30, 2024 2024 U.S. GAAP Other income (expense), net $ 30,081 $ 27,796 Pre-tax non-GAAP items: Amortization of not
Slide 22: Appendix – reconciliation
Appendix – reconciliation Calculation of Free Cash Flows (in thousands) (unaudited) Three Months Ended September 29, 2024 U.S. GAAP net cash provided by operating activities $ 1,568,471 U.S. GAAP cash used for capital expenditures and intangible assets (110,588) Total free cash flow $ 1,457,883 LAM
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 September 29, June 30, 2024 2024 U.S. GAAP income before income taxes $ 1,294,278 $ 1,154,356 U.S. GAAP income tax expense $ 177,834 $ 1
Slide 24: Appendix – reconciliation
Appendix – reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended December 29, 2024 U.S. GAAP Reconciling Items Non-GAAP Revenue $4.30 Billion +/- $300 Million — $4.30 Billion +/- $300 Million Gross margin as a percentage of revenue 46.9% +/- 1% $ 2.8 Million 47.0% +/-
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