I probably should have bought even more when I added to the Explore Portfolio position at $305 last week...
Lam blew earnings out of the Oracle/SF Giants park, over the SF Bay and then over the Oakland A's park too and I think the ball is still flying towards the Brewers...
Lam Research Corporation Reports Financial Results for the Quarter Ended September 25, 2022
OCTOBER 19, 2022
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FREMONT, Calif., Oct. 19, 2022 (GLOBE NEWSWIRE) -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 25, 2022 (the “September 2022 quarter”).
Highlights for the September 2022 quarter were as follows:
- Revenue of $5.07 billion.
- U.S. GAAP gross margin of 46.1%, U.S. GAAP operating income as a percentage of revenue of 33.5%, and U.S. GAAP diluted EPS of $10.39.
- Non-GAAP gross margin of 46.0%, non-GAAP operating income as a percentage of revenue of 33.3%, and non-GAAP diluted EPS of $10.42.
Key Financial Data for the Quarters Ended
September 25, 2022 and June 26, 2022
(in thousands, except per-share data, percentages, and basis points)
| U.S. GAAP | | | | September 2022 | | June 2022 | | Change Q/Q | | Revenue | | $ | 5,074,121 | | | $ | 4,635,554 | | | + 9.5 | % | | Gross margin as percentage of revenue | | | 46.1 | % | | | 45.3 | % | | + 80 bps | | | Operating income as percentage of revenue | | | 33.5 | % | | | 31.9 | % | | + 160 bps | | | Diluted EPS | | $ | 10.39 | | | $ | 8.74 | | | + 18.9 | % | | | | | | | | | | Non-GAAP | | | | September 2022 | | June 2022 | | Change Q/Q | | Revenue | | $ | 5,074,121 | | | $ | 4,635,554 | | | + 9.5 | % | | Gross margin as percentage of revenue | | | 46.0 | % | | | 45.2 | % | | + 80 bps | | | Operating income as percentage of revenue | | | 33.3 | % | | | 31.5 | % | | + 180 bps | | | Diluted EPS | | $ | 10.42 | | | $ | 8.83 | | | + 18.0 | % |
U.S. GAAP Financial Results
For the September 2022 quarter, revenue was $5,074 million, gross margin was $2,337 million, or 46.1% of revenue, operating expenses were $639 million, operating income was 33.5% of revenue, and net income was $1,426 million, or $10.39 per diluted share on a U.S. GAAP basis. This compares to revenue of $4,636 million, gross margin of $2,101 million, or 45.3% of revenue, operating expenses of $621 million, operating income of 31.9% of revenue, and net income of $1,209 million, or $8.74 per diluted share, for the quarter ended June 26, 2022 (the “June 2022 quarter”).
Non-GAAP Financial Results
For the September 2022 quarter, non-GAAP gross margin was $2,335 million, or 46.0% of revenue, non-GAAP operating expenses were $647 million, non-GAAP operating income was 33.3% of revenue, and non-GAAP net income was $1,429 million, or $10.42 per diluted share. This compares to non-GAAP gross margin of $2,094 million, or 45.2% of revenue, non-GAAP operating expenses of $635 million, non-GAAP operating income of 31.5% of revenue, and non-GAAP net income of $1,221 million, or $8.83 per diluted share, for the June 2022 quarter.
“Lam exceeded $5 billion in revenue in the September quarter, an all-time record. Solid execution combined with easing supply chain conditions produced strong overall performance,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “While we expect weaker wafer fabrication equipment spending in 2023, our technology leadership and demonstrated track record of managing through downturns provide us a strong foundation to capture the exciting opportunities ahead for the semiconductor industry.”
Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances increased to $4.6 billion at the end of the September 2022 quarter compared to $3.9 billion at the end of the June 2022 quarter. This increase was primarily the result of $1,190 million of cash generated from operating activities, partially offset by $206 million of dividends paid to stockholders; $140 million of capital expenditures; and $110 million of share repurchases, including net share settlement of employee stock-based compensation.
Deferred revenue at the end of the September 2022 quarter increased to $2,755 million compared to $2,198 million as of the end of the June 2022 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptances. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $401 million as of September 25, 2022 and $367 million as of June 26, 2022.
Revenue
The geographic distribution of revenue during the September 2022 quarter is shown in the following table:
| Region | Revenue | | China | 30% | | Taiwan | 22% | | Korea | 17% | | Southeast Asia | 11% | | Japan | 9% | | United States | 6% | | Europe | 5% |
The following table presents revenue disaggregated between system and customer support-related revenue:
| | Three Months Ended | | | September 25,
2022 | | June 26,
2022 | | September 26,
2021 | | | (In thousands) | | System revenue | $ | 3,181,987 | | $ | 3,006,374 | | $ | 2,924,883 | | Customer support-related revenue and other | | 1,892,134 | | | 1,629,180 | | | 1,379,582 | | | $ | 5,074,121 | | $ | 4,635,554 | | $ | 4,304,465 | | | | | | | |
System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.
Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ended December 25, 2022, Lam is providing the following guidance:
| | 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% | | Operating income as a percentage of revenue | 31.5% | +/- | 1% | | $ 3 Million | | 31.5% | +/- | 1% | | Net income per diluted share | $9.98 | +/- | $0.75 | | $ 3 Million | | $10.00 | +/- | $0.75 | | Diluted share count | 136 Million | | — | | 136 Million |
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed or recognized after the date of this release. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:
- Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $1 million.
- Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3 million.
- Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($1 million); totaling $3 million.
More at investor.lamresearch.com
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