Lam Research Corporation Announces Selected Financial Results for the Quarter Ended December 23, 2007
January 24 2008 - 4:00PM
Business Wire
Lam Research Corporation (NASDAQ:LRCX) today announced selected
financial results for the quarter ended December 23, 2007.
Highlights for the December 2007 quarter were: � � � � � ? Revenue:
$610.3 million � ? Operating Income: U.S. GAAP: $161.3 million
Ongoing: $167.7 million � ? Operating Margin: U.S. GAAP: 26.4%
Ongoing: 27.5% Revenue for the period was $610.3�million compared
to revenue of $684.6�million for the September�2007 quarter.
Shipments for the December�2007 quarter were approximately
$593�million compared to September 2007 quarter shipments of
approximately $621�million. The amounts for cost of goods sold,
gross margin, operating expenses, operating income and income
before income taxes for the December and September 2007 quarters
are preliminary due to the ongoing voluntary internal stock option
review and could be subject to adjustment. Gross margin for the
December 2007 quarter was $307.7�million, or 50.4% of revenue,
compared to $343.9 million, or 50.2% of revenue, for the September
2007 quarter. Operating income for the December 2007 quarter was
$161.3�million, or 26.4% of revenue, compared to $197.9 million, or
28.9% of revenue, for the September 2007 quarter. The Company�s
ongoing operating income excludes legal and accounting expenses of
$6.4 million and $3.1 million for the December 2007 and September
2007 quarters, respectively, incurred as a result of its voluntary
internal stock option review. Management uses the presentation of
ongoing operating income to evaluate the Company�s operating and
financial results. The Company believes the presentation of ongoing
operating income is useful to investors for analyzing ongoing
business trends, comparing performance to prior periods, and
enhancing the investor�s ability to view the Company�s results from
management�s perspective. A table presenting a reconciliation of
ongoing operating income to results under U.S. Generally Accepted
Accounting Principles (GAAP)�is included at the end of this press
release and on the Company�s web site. The geographic distribution
of shipments and revenue during the December�2007 quarter is shown
in the following table: � � Region � Shipments � Revenue North
America 17% 18% Europe 13% 12% Japan 19% 23% Korea 19% 17% Asia
Pacific 32% 30% Cash and cash equivalents, short-term investments
and restricted cash and investments balances were $1.3�billion at
the end of December. During the December�2007 quarter, capital
expenditures were $24.4�million and proceeds from the issuance of
common stock related to employee equity-based plans were
$3.4�million. Total shares outstanding as of December 23, 2007 were
124,753,459. At the end of the period, deferred revenue was
$229.6�million and the anticipated future revenue value of orders
shipped to Japanese customers that are not recorded as deferred
revenue was approximately $41�million. �Lam delivered financial
performance in the December quarter that exceeded our guidance
despite difficult industry conditions, and finished calendar 2007
with record revenue of $2.6 billion,� stated Steve Newberry,
president and chief executive officer of Lam Research. �We continue
to make excellent progress in implementing our adjacent market
strategy, with three new product releases in 2007 and our announced
plan to acquire the SEZ Group, which together will enhance our
ability to offer our customers a broader spectrum of solutions
across multiple markets at the next-generation technology nodes.�
�Our employees� outstanding performance and their commitment to
setting the standard of excellence for the wafer fab equipment
industry will position us to continue generating value for our
customers and stakeholders throughout 2008,� Newberry concluded.
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 future revenue value of orders
shipped to Japanese customers, the progress and success of our
adjacent market strategy, the completion of our acquisition of SEZ
and our combined capabilities, our ability to generate value and
continuing performance to our near-term and long-term strategic and
financial objectives. Some factors that may affect these
forward-looking statements include: changing business conditions in
the semiconductor industry and the overall economy and the efficacy
of our plans for reacting to those changes, success of our
competitors� strategies including their development of new
technologies, and the response of SEZ�s shareholders to our tender
offer. These forward-looking statements are based on current
expectations and are subject to uncertainties and changes in
condition, significance, value and effect as well as other risks
detailed in documents filed with the Securities and Exchange
Commission, including specifically the report on Form 10-K for the
year ended June�25, 2006, and Form 10-Q for the quarter ended
March�25, 2007, which could cause actual results to vary from
expectations. The Company undertakes no obligation to update the
information or statements made in this press release. As the
Company announced on July�17, 2007, the Company�s Board of
Directors has appointed an Independent Committee to review the
Company�s historical stock option practices and related accounting.
On August�24, 2007 the Company filed Form 12b-25 as notification
that the Company is unable to timely file its Form 10-K for the
period ended June�24, 2007 as a result of the pending review. On
November 5, 2007 the Company filed Form 12b-25 as notification that
the Company is unable to timely file its Form 10-Q for the period
ended September 23, 2007 as a result of the pending review. On
December 24, 2007, the Company filed a Form 8-K as notification
that the independent committee, with the assistance of independent
outside legal counsel, had reached a preliminary conclusion that
the actual measurement dates for financial accounting purposes of
certain stock option grants issued in the past differ from the
recorded grant dates of such awards and that upon the
recommendation of management and the independent committee, the
Audit Committee of the Board of Directors concluded that the
Company�s financial statements for fiscal years 1997 through 2005,
and the interim periods contained therein should no longer be
relied upon. The Company expects to restate certain of its
previously-issued financial statements to record non-cash charges
for compensation expenses relating to past stock option grants.
Because the review has not been completed and because the Company�s
auditors have not yet completed their review, the Company is only
able to provide preliminary results for cost of goods sold, gross
margins, operating expenses, operating income and income before
income taxes for the period presented in this release at this time.
These preliminary results may be subject to adjustment. Further,
the Company cannot make assurances that the outcome of the review
will not result in changes to or a restatement of its financial
results for this or any historical period, that its Form 10-Q for
the period ended December 23, 2007 will be timely filed, that the
Company will be able to give timely guidance with respect to future
periods or that it will not be required to make changes to its
internal controls or processes. Lam Research Corporation is a major
provider of wafer fabrication equipment and services to the world�s
semiconductor industry. Lam�s common stock trades on The NASDAQ
Global Select MarketSM under the symbol LRCX. Lam is a NASDAQ-100�
company. The Company�s World Wide Web address is
http://www.lamresearch.com. Condensed Consolidated Financial Table
Follows LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (in thousands, except percentages) (unaudited) � � �
� Three Months Ended Three Months Ended Six Months Ended December
23, September 23, December 23, � 2007 � � 2007 � � 2007 � � Total
revenue $ 610,320 $ 684,621 $ 1,294,941 Cost of goods sold �
302,659 � � 340,734 � � 643,393 � Gross margin 307,661 343,887
651,548 Gross margin as a percent of revenue 50.4 % 50.2 % 50.3 %
Research and development 80,243 76,288 156,531 Selling, general and
administrative � 66,084 � � 69,713 � � 135,797 � Total operating
expenses 146,327 146,001 292,328 Operating income 161,334 197,886
359,220 Operating margin as a percent of revenue 26.4 % 28.9 % 27.7
% Other income (expense), net � (37 ) � 7,633 � � 7,596 � Income
before income taxes $ 161,297 � $ 205,519 � $ 366,816 � � The
information contained in these unaudited condensed consolidated
statements of operations may be subject to adjustment. For
additional information, please refer to the accompanying press
release dated January 24, 2008. Reconciliation of U.S. GAAP
Operating Income to Ongoing Operating Income (in thousands, except
percentages) � � Three Months Ended � Three Months Ended December
23, September 23, � 2007 � � 2007 � U.S. GAAP operating income $
161,334 $ 197,886 Legal and accounting expenses incurred as a
result of the voluntary internal stock option review � 6,361 � �
3,102 � Ongoing Operating Income $ 167,695 � $ 200,988 � U.S. GAAP
operating margin as a percent of revenue 26.4 % 28.9 % Ongoing
operating margin as a percent of revenue 27.5 % 29.4 %
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