Lam Research Corporation (NASDAQ:LRCX) highlights for the
September 2009 quarter were:
(in thousands, except per share data and percentages)
Revenue:
$ 318,548 Operating Margin: U.S. GAAP: 9.2 % Ongoing: 2.5 %
Net Income: U.S. GAAP: $ 16,797 Ongoing: $ 4,181
Diluted EPS: U.S. GAAP: $ 0.13 Ongoing: $ 0.03
Lam Research Corporation today announced financial results for
the quarter ended September 27, 2009. Revenue for the period was
$318.5 million, gross margin was $136.8 million and net
income was $16.8 million, or $0.13 per diluted share, compared to
revenue of $217.8 million, gross margin of $67.8 million
and net loss of $(88.5) million, or $(0.70) per diluted share,
for the June 2009 quarter. Shipments for the September 2009 quarter
were $355 million compared to $246 million during the
June 2009 quarter.
The Company’s ongoing results for the September 2009 quarter
exclude certain costs for previously announced restructuring
activities and the finalization of a portion of certain liabilities
for Internal Revenue Code Section 409A related expenses. The
Company’s ongoing results for the June 2009 quarter excluded
certain costs for previously announced restructuring activities and
asset impairments, a legal judgment, a non-cash goodwill impairment
charge, certain one-time contract termination costs, a net tax
expense for valuation allowance, net tax expense on resolution of
certain tax matters, and interest and legal fees related to
Internal Revenue Code Section 409A tax expenses. Management uses
the presentation of ongoing gross margin, ongoing operating
expenses, ongoing operating income (loss), ongoing operating
margin, ongoing net income (loss), and ongoing net income (loss)
per diluted share to evaluate the Company’s operating and financial
results. The Company believes the presentation of ongoing results
is useful to investors for analyzing business trends and comparing
performance to prior periods, along with enhancing the investor’s
ability to view the Company’s results from management’s
perspective. A table presenting a reconciliation of ongoing results
to results under U.S. GAAP is included at the end of this press
release and on the Company’s web site.
Ongoing net income was $4.2 million, or $0.03 per diluted share
in the September 2009 quarter compared to ongoing net loss of
$(57.0) million, or $(0.45) per diluted share, for the June
2009 quarter. Ongoing gross margin for the September 2009 quarter
was $131.3 million or 41.2%, compared to ongoing gross margin
of $67.8 million, or 31.1%, for the June 2009 quarter. The
sequential increase in gross margin was primarily due to improved
factory and field utilization as a result of increased business
volume and a more favorable product mix. Ongoing operating expenses
for the September 2009 quarter increased to $123.3 million
compared with the June 2009 quarter of $114.3 million.
This increase was primarily the result of one-time credits against
spending realized in the June 2009 quarter, planned additional
spending on R&D programs and additional employee variable
compensation as a result of higher profit levels.
The geographic distribution of shipments and revenue during the
September 2009 quarter is shown in the following table:
Region Shipments Revenue North
America 10 % 9 % Europe 6 % 7 % Japan 18 % 18 % Korea 24 % 23 %
Taiwan 31 % 29 % Asia Pacific 11 % 14 %
Cash and cash equivalents, short-term investments and restricted
cash and investments balances were $761.2 million at the end
of the September 2009 quarter, compared to $757.8 million at the
end of the June 2009 quarter. Cash flows from operating activities
were approximately $2.7 million during the September 2009 quarter.
Deferred revenue and deferred profit balances at the end of the
September 2009 quarter were $89.7 million and
$55.6 million, respectively. Lam’s deferred revenue balance
does not include shipments to Japanese customers, to whom title
does not transfer until customer acceptance. Shipments to Japanese
customers are classified as inventory at cost until the time of
acceptance. The anticipated future revenue from shipments to
Japanese customers was approximately $23 million as of
September 27, 2009.
“Lam Research had strong shipments and revenue performance in
the September quarter, allowing the Company to return to
profitability and generate positive cash flow once again. As
business conditions improve, we continue our focus on developing
leading-edge solutions for our customers while responding rapidly
to meet their current production needs,” said Steve Newberry, Lam’s
president and chief executive officer. “As we look forward to an
improved business environment, we would like to thank our employees
for their personal sacrifice during the downturn and their
continued commitment to the success of Lam Research,” 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 anticipated revenue from
shipments to Japanese customers, Lam’s focus on developing leading
edge solutions while responding to customer production needs, and
Lam’s projections for future business conditions and an improved
business environment. Some factors that may affect these
forward-looking statements include: business conditions in the
semiconductor industry and the overall economy, and the efficacy of
Lam’s plans for reacting to those conditions, changing customer
demands, the actions of Lam’s competitors, and the challenges
presented by the development and marketing of new products. 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 28, 2009, 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.
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
Market SM under the symbol LRCX. Lam is a NASDAQ-100 ® company. For
more information, visit www.lamresearch.com.
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share
data and percentages) (unaudited)
Three Months Ended September 27, June 28,
September 28, 2009 2009
2008 Total revenue $ 318,548 $
217,764 $ 440,361 Cost of goods sold 187,233 150,007 254,203 Cost
of goods sold - restructuring and asset impairments - - 3,048 Cost
of goods sold - 409A expense (5,455 ) -
- Total cost of goods sold 181,778 150,007 257,251 Gross
margin 136,770 67,757 183,110 Gross margin as a percent of revenue
42.9 % 31.1 % 41.6 % Research and development 71,199 67,491 81,563
Selling, general and administrative 52,119 47,248 68,299 Goodwill
impairment - 7,179 - Restructuring and asset impairments 2,093
5,396 15,968 409A expense (17,893 ) 982 761 Legal judgment -
4,647 - Total operating expenses
107,518 132,943 166,591
Operating income (loss) 29,252 (65,186 ) 16,519 Operating margin as
a percent of revenue 9.2 % -29.9 % 3.8 % Other income (expense),
net (368 ) 2,869 9,017 Income
(loss) before income taxes 28,884 (62,317 ) 25,536 Income tax
expense 12,087 26,173 16,663
Net income (loss) $ 16,797 $ (88,490 ) $ 8,873
Net income (loss) per share: Basic net income (loss) per share $
0.13 $ (0.70 ) $ 0.07 Diluted net income (loss) per
share $ 0.13 $ (0.70 ) $ 0.07 Number of shares used
in per share calculations: Basic 126,774
126,273 125,527 Diluted 127,890
126,273 126,819
LAM RESEARCH
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands) September 27, June 28,
2009 2009 (unaudited)
(1)
ASSETS Cash and cash equivalents $ 361,163 $ 374,167 Short-term
investments 215,031 205,221 Accounts receivable, net 325,756
253,585 Inventories 220,083 233,410 Deferred income taxes 49,140
69,043 Other current assets 61,128 60,401 Total
current assets 1,232,301 1,195,827 Property and equipment, net
211,348 215,666 Restricted cash and investments 185,010 178,439
Deferred income taxes 24,451 17,007 Goodwill and intangible assets
254,847 260,787 Other assets 87,148 84,145 Total
assets $ 1,995,105 $ 1,951,871 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities $ 336,911 $ 340,763 Long-term
debt and capital leases $ 35,787 $ 40,886 Income taxes payable
105,925 102,999 Other long-term liabilities 12,722 14,134
Stockholders' equity 1,503,760 1,453,089 Total
liabilities and stockholders' equity $ 1,995,105 $ 1,951,871
1 Derived from audited financial statements
LAM RESEARCH
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands) (unaudited)
Three Months Ended September 27, June
28, September 28, 2009
2009 2008 CASH FLOWS FROM
OPERATING ACTIVITIES: Net income (loss) $ 16,797 $ (88,490 ) $
8,873
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities:
Depreciation and amortization 17,681 17,694 17,896 Deferred income
taxes 12,482 19,913 (12,407 ) Equity-based compensation expense
13,958 13,358 15,408 Income tax benefit on equity-based
compensation plans (89 ) (1,173 ) 5,039 Excess tax benefit on
equity-based compensation plans (368 ) (237 ) (4,269 ) Goodwill
impairment - 7,179 - Restructuring and asset impairments 2,093
5,396 19,016 Other, net 1,159 2,535 2,665 Changes in operating
asset accounts (61,009 ) (34,295 ) (9,089 )
Net cash provided by (used for) operating activities 2,704
(58,120 ) 43,132 CASH FLOWS FROM
INVESTING ACTIVITIES: Capital expenditures and intangible assets
(5,832 ) (5,848 ) (15,151 ) Acquisitions of businesses, net of cash
acquired - - (2,427 ) Net sales (purchases) of available-for-sale
securities (9,775 ) 93,056 6,980 Purchase of other investments (961
) - - Transfer of restricted cash and investments (6,571 ) (44,458
) (16,128 ) Other - 2,000 -
Net cash provided by (used for) investing activities
(23,139 ) 44,750 (26,726 ) CASH FLOWS
FROM FINANCING ACTIVITIES: Principal payments on long-term debt and
capital lease obligations (1,915 ) (911 ) (2,390 ) Net proceeds
from issuance of long-term debt 284 - 127 Excess tax benefit on
equity-based compensation plans 368 237 4,269 Treasury stock
purchases (2,356 ) (3,197 ) (2,755 ) Reissuances of treasury stock
5,761 6,271 7,584 Proceeds from issuance of common stock
2,256 6,287 3,150 Net cash
provided by financing activities 4,398 8,687
9,985 Effect of exchange rate changes on cash
3,033 4,202 (13,496 ) Net increase (decrease) in cash and cash
equivalents (13,004 ) (481 ) 12,895 Cash and cash equivalents at
beginning of period 374,167 374,648
732,537 Cash and cash equivalents at end of period $
361,163 $ 374,167 $ 745,432
Reconciliation
of U.S. GAAP Net Income (Loss) to Ongoing Net Income (Loss)
(in thousands, except per share data) (unaudited)
Three Months Ended Three Months Ended
September 27, June 28, 2009
2009 U.S. GAAP net income (loss) $ 16,797 $
(88,490 ) Pre-tax non-ongoing items: Goodwill impairment -
operating expenses - 7,179 Legal judgment - operating expenses -
4,647 Restructuring and asset impairments - operating expenses
2,093 5,396 409A expense - cost of goods sold (5,455 ) - 409A
expense - operating expenses (17,893 ) 982 One-time contract
termination costs - operating expenses - 413 Net tax expense
(benefit) on non-ongoing items 8,639 (4,556 ) Net tax expense on
resolution of certain tax matters - 3,637 Net tax expense for
valuation allowance - 13,787 Ongoing
net income (loss) $ 4,181 $ (57,005 ) Ongoing net income
(loss) per diluted share $ 0.03 $ (0.45 ) Number of shares
used for diluted per share calculation 127,890 126,273
Reconciliation of U.S. GAAP Gross Margin, Operating
Expenses and Operating Income (Loss) to Ongoing Gross Margin,
Operating Expenses and Operating Income (Loss) (in
thousands, except percentages) (unaudited)
Three Months Ended Three Months Ended September
27, June 28, 2009
2009 U.S. GAAP gross margin $ 136,770 $ 67,757
Pre-tax non-ongoing items: Pre-tax 409A expense - cost of goods
sold (5,455 ) - Ongoing gross margin $ 131,315
$ 67,757 U.S. GAAP gross margin as a percent of
revenue 42.9 % 31.1 % Ongoing gross margin as a percent of revenue
41.2 % 31.1 % U.S. GAAP operating expenses $ 107,518 $ 132,943
Pre-tax non-ongoing items: Goodwill impairment - operating expenses
- (7,179 ) Legal judgment - operating expenses - (4,647 )
Restructuring and asset impairments - operating expenses (2,093 )
(5,396 ) One-time contract termination costs - operating expenses -
(413 ) 409A expense - operating expenses 17,893
(982 ) Ongoing operating expenses $ 123,318 $ 114,326
Ongoing operating income (loss) $ 7,997 $ (46,569 )
Ongoing operating margin as a percent of revenue 2.5 % -21.4 %
Lam Research (NASDAQ:LRCX)
Historical Stock Chart
From May 2024 to Jun 2024
Lam Research (NASDAQ:LRCX)
Historical Stock Chart
From Jun 2023 to Jun 2024