Lam Research Corporation Announces Record Earnings in Fiscal 2000 Fourth Quarter
Record Bookings Drive Continued Backlog Expansion
FREMONT, Calif.--(BUSINESS WIRE)--July 26, 2000--Lam Research Corporation (Nasdaq:LRCX - news) today announced financial results for the fiscal year and fourth quarter ended June 25, 2000. Fourth quarter revenues were $374.2 million and net income, including the benefit of a restructuring reserve reversal of $17.0 million, was $76.4 million, or $0.55 per diluted share. Sales for the period were 77 percent higher than the prior year's fourth quarter and 15 percent higher than the quarter ended March 26, 2000. Excluding the restructuring reserve reversal, net income for the period was $61.7 million, or $0.45 per diluted share, compared to $11.3 million, or $0.09 per diluted share, for the corresponding quarter ended June 30, 1999. This represents growth of 444 percent in net income and 400 percent growth in earnings per share from the prior year's quarter.
Record new orders for June exceeded the prior quarter's orders by more than 10 percent, resulting in an expansion of backlog to an all time high. Geographic orders distribution was as follows: North America, 29 percent; Europe, 29 percent; Japan, 16 percent; and Asia Pacific, 26 percent.
Revenues increased in all regions from the prior year's corresponding quarter. Geographic sales distribution for the quarter was as follows: North America, 27 percent; Europe, 29 percent; Japan, 10 percent; and Asia Pacific, 34 percent.
After excluding the restructuring reserve reversal, gross margins increased to 45.2 percent of revenues, and operating expenses of $99.2 million represented an all time low as a percentage of total sales, reflecting Lam's ongoing emphasis on productivity improvements.
For the year ended June 25, 2000, the company reported net income of $180.1 million, or $1.36 per diluted share compared to a net loss of $54.5 million, or $0.47 per diluted share for the year ended June 30, 1999. These amounts exclude a non-recurring credit of $28.5 million in fiscal year 2000 and non-recurring charges of $58.4 million in fiscal year 1999. Revenues for fiscal year 2000 were $1,231 million, 90 percent higher than revenues of $648 million in fiscal year 1999.
``The company's performance this quarter reflects both the strong demand for semiconductor capital equipment as well as our increased penetration in the etch and CMP markets,'' stated James W. Bagley, chairman and chief executive officer. ``I am pleased with the robust growth in new orders for our advanced etch and CMP systems and the continued improvement in the company's operating profit.
``The move to copper and low-k materials, the transition to the sub 0.13 micron technology node, and the implementation of 300 mm pilot lines are converging at a time when the industry is ramping production capacity to meet the broad demand for semiconductor devices. Lam is well positioned to continue to benefit from the industry's need for next-generation, leading edge wafer processing systems,'' Bagley concluded.
Lam Research Corporation is a leading supplier of front-end wafer processing equipment and services to the worldwide semiconductor manufacturing industry. The company's common stock trades on the Nasdaq National Market under the symbol ``LRCX''. Lam's World Wide Web address is lamrc.com.
Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to the prospective demand for the company's products, the company's plans and objectives for future operations and market and competitive conditions, and other risks detailed in documents filed with the Securities and Exchange Commission, including, specifically the report on Form 10-K for the fiscal year ended June 30, 1999 and the Form 10-Q for the quarter ended March 26, 2000, which could cause actual results to vary from expectations. The company undertakes no obligation to update the information in this press release.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 25, June 30, June 25, June 30,
2000 1999 2000 1999
Unaudited
Total revenue $ 374,216 $ 210,885 $1,230,767 $ 647,955
Cost and expenses:
Cost of goods sold -
on net sales 205,234 129,071 691,161 414,591
Cost of goods sold -
on restructuring
recovery (1,400) -- (2,249) --
--------- --------- ---------- ---------
Gross margin 170,382 81,814 541,855 233,364
Research and development 51,466 37,638 176,895 142,495
Selling, general and
administrative 47,702 33,109 161,349 145,698
Restructuring charge
(recovery) (15,608) -- (33,691) 53,372
Purchased technology for
research and development -- -- 7,460 5,000
--------- --------- ---------- ---------
Operating income (loss) 86,822 11,067 229,842 (113,201)
Other income (expense),
net 1,958 282 6,971 288
--------- --------- ---------- ---------
Income (loss) before
income tax expense 88,780 11,349 236,813 (112,913)
Income tax expense 12,429 -- 32,057 --
--------- --------- ---------- ---------
Net income (loss) $ 76,351 $ 11,349 $ 204,756 $(112,913)
========= ========= ========== =========
Net income (loss) per
share
Basic $ 0.61 $ 0.10 $ 1.69 $ (0.98)
========= ========= ========== =========
Diluted(a) $ 0.55 $ 0.09 $ 1.53 $ (0.98)
========= ========= ========== =========
Number of shares used in
per share calculation
Basic 124,556 115,485 120,949 115,476
========= ========= ========== =========
Diluted 146,269 122,643 143,327 115,476
========= ========= ========== =========
(a) Diluted earnings per share for the three and twelve month
periods ended June 25, 2000 assumes conversion of convertible
subordinated notes (the "Notes"). Accordingly, interest
expense net of taxes of $3,840 and $14,996 respectively, must
be added to net income for computing diluted earnings per
share. Conversion of the Notes for all other periods presented
was antidilutive and therefore excluded from the calculation
of diluted earnings per share.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 25, June 30,
2000 1999
Assets:
Cash and short-term investments $ 371,722 $ 311,801
Accounts receivable, net 323,935 170,531
Inventories 227,169 183,716
Other current assets 98,509 72,822
---------- ----------
Total current assets 1,021,335 738,870
Equipment/leasehold improvements, net 119,192 103,337
Restricted cash 60,348 60,348
Other assets 43,962 76,896
---------- ----------
Total assets $1,244,837 $ 979,451
========== ==========
Liabilities and stockholders' equity:
Total current liabilities $ 287,756 $ 243,995
Long-term debt and other 321,657 326,500
Stockholders' equity 635,424 408,956
---------- ----------
Total liabilities and stockholders'
equity $1,244,837 $ 979,451
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