Lam Research Corporation (NASDAQ: LRCX) highlights for the
December 2009 quarter were:
(in thousands, except per share data and percentages)
● Revenue: $ 487,176
U.S. GAAP
Ongoing ● Operating Margin: 18.8 % 15.6 % ● Net
Income: $ 69,574 $ 60,714 ● Diluted EPS: $ 0.54 $ 0.47
Lam Research Corporation today announced financial results for
the quarter ended December 27, 2009. Revenue for the period
was $487.2 million, gross margin was $223.2 million and
net income was $69.6 million, or $0.54 per diluted share, compared
to revenue of $318.5 million, gross margin of
$136.8 million and net income of $16.8 million, or $0.13
per diluted share, for the September 2009 quarter. Shipments for
the December 2009 quarter were $519 million compared to
$355 million during the September 2009 quarter.
The Company’s ongoing results for the December 2009 quarter
exclude certain costs for previously announced restructuring
activities, the reversal of accrued liabilities due to final
settlement of the remaining liabilities for Internal Revenue Code
Section 409A related expenses, and the impairment of an
investment. The Company’s ongoing results for the September 2009
quarter excluded certain costs for previously announced
restructuring activities and the reversal of accrued liabilities
due to settlement of a portion of certain liabilities for Internal
Revenue Code Section 409A related expenses. Management uses
the presentation of ongoing gross margin, ongoing operating
expenses, ongoing operating income, ongoing operating margin,
ongoing net income, and ongoing net income 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 $60.7 million, or $0.47 per diluted share
in the December 2009 quarter compared to ongoing net income of
$4.2 million, or $0.03 per diluted share, for the September
2009 quarter. Ongoing gross margin for the December 2009 quarter
was $218.5 million or 44.8%, compared to ongoing gross margin
of $131.3 million, or 41.2%, for the September 2009 quarter.
The sequential increase in gross margin was primarily due to
improved factory utilization as a result of increased business
volume and a more favorable product mix. Ongoing operating expenses
for the December 2009 quarter increased to $142.3 million
compared with the September 2009 quarter of
$123.3 million. This increase was a function of higher
variable compensation expense associated with our improvement in
profitability, new product material spending to support additional
market opportunities arising from an improved business outlook, and
the restoration of employee salaries and accompanying benefits
(excluding executive management) to levels prior to the actions to
reduce base compensation in the March 2009 quarter.
The geographic distribution of shipments and revenue during the
December 2009 quarter is shown in the following table:
Region Shipments Revenue North
America 7 % 8 % Europe 6 % 6 % Japan 12 % 15 % Korea 26 % 25 %
Taiwan 37 % 35 % Asia Pacific 12 % 11 %
Cash and cash equivalents, short-term investments and restricted
cash and investments balances were $830.6 million at the end
of the December 2009 quarter, compared to $761.2 million at the end
of the September 2009 quarter. Cash flows from operating activities
were approximately $73.3 million during the December 2009 quarter.
Deferred revenue and deferred profit balances at the end of the
December 2009 quarter were $134.4 million and
$73.9 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 $11 million as of
December 27, 2009.
“In the December 2009 quarter we saw significant growth in
shipments, revenue and earnings for Lam Research. As we move into
2010 we will continue to focus on delivering market share gains in
our etch and clean businesses to expand revenues, earnings per
share and cash generation from cycle to cycle,” said Steve
Newberry, Lam’s president and chief executive officer. “I would
like to thank our employees, suppliers and shareholders for their
continued commitment to our success,” Newberry concluded.
Statements made in this press release that 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, and Lam’s focus on delivering
market share gains in its etch and clean businesses to expand
revenues, earnings per share and cash generation from cycle to
cycle. 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 and the
report on Form 10-Q for the three months ended September 27, 2009.
These uncertainties and changes 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 CONSOLIDATED STATEMENTS
OF OPERATIONS (in thousands, except per share data)
(unaudited) Three
Months Ended Six Months Ended December 27,
September 27, December 28, December 27,
December 28, 2009 2009
2008 2009
2008 Total revenue $ 487,176 $ 318,548 $ 283,409 $
805,724 $ 723,770 Cost of goods sold 268,685 187,233 174,329
455,918 428,532 Cost of goods sold - restructuring and asset
impairments - - 7,728 - 10,776 Cost of goods sold - 409A expense
(4,713 ) (5,455 ) - (10,168 )
- Total costs of goods sold 263,972
181,778 182,057 445,750
439,308 Gross margin 223,204 136,770 101,352 359,974
284,462 Gross margin as a percent of revenue 45.8 % 42.9 % 35.8 %
44.7 % 39.3 % Research and development 82,171 71,199 68,781 153,370
150,344 Selling, general and administrative 60,111 52,119 57,699
112,230 125,998 Restructuring and asset impairments 5,919 2,093
10,121 8,012 26,089 409A expense (16,345 ) (17,893 )
2,143 (34,238 ) 2,904 Total
operating expenses 131,856 107,518
138,744 239,374 305,335
Operating income (loss) 91,348 29,252 (37,392 ) 120,600 (20,873 )
Operating margin as a percent of revenue 18.8 % 9.2 % -13.2 % 15.0
% -2.9 % Other income (expense), net (58 ) (368 )
(7,233 ) (426 ) 1,784 Income (loss)
before income taxes 91,290 28,884 (44,625 ) 120,174 (19,089 )
Income tax expense (benefit) 21,716 12,087
(20,453 ) 33,803 (3,790 ) Net
income (loss) $ 69,574 $ 16,797 $ (24,172 ) $ 86,371
$ (15,299 ) Net income (loss) per share: Basic net income
(loss) per share $ 0.55 $ 0.13 $ (0.19 ) $ 0.68
$ (0.12 ) Diluted net income (loss) per share $ 0.54
$ 0.13 $ (0.19 ) $ 0.67 $ (0.12 ) Number of shares
used in per share calculations: Basic 127,296
126,774 125,084 127,035
125,266 Diluted 128,829 127,890
125,084 128,389 125,266
See Notes to Condensed Consolidated Financial Statements
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands) December
27, September 27, June 28, 2009
2009 2009 (unaudited)
(unaudited)
(1)
ASSETS Cash and cash equivalents $ 430,166 $ 361,163 $ 374,167
Short-term investments 215,567 215,031 205,221 Accounts receivable,
net 420,486 325,756 253,585 Inventories 241,296 220,083 233,410
Deferred income taxes 47,984 57,293 69,043 Other current assets
79,482 61,128 60,401 Total current
assets 1,434,981 1,240,454 1,195,827 Property and equipment, net
205,089 211,348 215,666 Restricted cash and investments 184,913
185,010 178,439 Deferred income taxes 16,399 16,298 17,007 Goodwill
and intangible assets 248,838 254,816 260,787 Other assets
94,622 87,179 84,145 Total assets $ 2,184,842
$ 1,995,105 $ 1,951,871 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities $ 445,243 $ 336,911 $ 340,763
Long-term debt and capital leases $ 35,145 $ 35,787 $ 40,886
Income taxes payable 107,273 105,925 102,999 Other long-term
liabilities 12,397 12,722 14,134 Stockholders' equity
1,584,784 1,503,760 1,453,089 Total
liabilities and stockholders' equity $ 2,184,842 $ 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 Six Months Ended December 27,
September 27, December 28, December 27,
December 28, 2009 2009
2008 2009
2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net income
(loss) $ 69,574 $ 16,797 $ (24,172 ) $ 86,371 $ (15,299 )
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities:
Depreciation and amortization 18,184 17,681 17,177 35,865 35,073
Deferred income taxes 9,229 12,482 10,110 21,711 (2,297 )
Restructuring charges, net 5,919 2,093 17,849 8,012 36,865
Equity-based compensation expense 13,259 13,958 14,049 27,217
29,457 Income tax benefit on equity-based compensation plans 303
(89 ) (7,045 ) 214 (2,006 ) Excess tax benefit on equity-based
compensation plans (235 ) (368 ) 3,752 (603 ) (517 ) Other, net 173
1,159 3,200 1,332 5,865 Changes in operating asset and liabilities:
(43,096 ) (61,009 ) (73,909 ) (104,105
) (82,998 ) Net cash provided by (used for) operating
activities 73,310 2,704 (38,989
) 76,014 4,143 CASH FLOWS FROM
INVESTING ACTIVITIES: Capital expenditures and intangible assets
(6,893 ) (5,832 ) (12,417 ) (12,725 ) (27,568 ) Acquisitions of
businesses, net of cash acquired - - (8,763 ) - (11,190 ) Net
sales/maturities (purchases) of available-for-sale securities
(1,016 ) (9,775 ) 39,767 (10,791 ) 46,747 Purchase of other
investments - (961 ) - (961 ) - Transfer of restricted cash and
investments 97 (6,571 ) (32,178 ) (6,474 ) (48,306 ) Other -
- (2,000 ) -
(2,000 ) Net cash used for investing activities (7,812 )
(23,139 ) (15,591 ) (30,951 ) (42,317 )
CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on
long-term debt and capital lease obligations (689 ) (1,915 )
(13,060 ) (2,604 ) (15,433 ) Net proceeds from issuance of
long-term debt 52 284 515 336 625 Excess tax benefit on
equity-based compensation plans 235 368 (3,752 ) 603 517 Treasury
stock purchases (576 ) (2,356 ) (24,448 ) (2,932 ) (27,203 )
Reissuances of treasury stock - 5,761 - 5,761 7,584 Proceeds from
issuance of common stock 4,126 2,256
1,294 6,382 4,444 Net
cash provided by (used for) financing activities 3,148
4,398 (39,451 ) 7,546
(29,466 ) Effect of exchange rate changes on cash 357 3,033
1,512 3,390 (11,984 ) Net increase (decrease) in cash and cash
equivalents 69,003 (13,004 ) (92,519 ) 55,999 (79,624 ) Cash and
cash equivalents at beginning of period 361,163
374,167 745,432 374,167
732,537 Cash and cash equivalents at end of period $
430,166 $ 361,163 $ 652,913 $ 430,166 $
652,913 See Notes to Condensed Consolidated
Financial Statements
Reconciliation of U.S. GAAP Net Income to
Ongoing Net Income (in thousands, except per share data)
(unaudited) Three Months Ended Three
Months Ended December 27, September 27,
2009 2009 U.S. GAAP net income $
69,574 $ 16,797 Pre-tax non-ongoing items: Restructuring and asset
impairments - operating expenses 5,919 2,093 409A expense - cost of
goods sold (4,713 ) (5,455 ) 409A expense - operating expenses
(16,345 ) (17,893 ) Impairment of investment - other income
(expense), net 927 - Net tax expense on non-ongoing items
5,352 8,639 Ongoing net income $ 60,714
$ 4,181 Ongoing net income per diluted share $ 0.47 $
0.03 Number of shares used for diluted per share calculation
128,829 127,890
Reconciliation of U.S. GAAP Gross
Margin, Operating Expenses and Operating Income to Ongoing Gross
Margin, Operating Expenses and Operating Income (in
thousands, except percentages) (unaudited)
Three Months Ended Three Months Ended December
27, September 27, 2009
2009 U.S. GAAP gross margin $ 223,204 $ 136,770
Pre-tax non-ongoing items: Pre-tax 409A expense - cost of goods
sold (4,713 ) (5,455 ) Ongoing gross margin $ 218,491
$ 131,315 U.S. GAAP gross margin as a percent of
revenue 45.8 % 42.9 % Ongoing gross margin as a percent of revenue
44.8 % 41.2 % U.S. GAAP operating expenses $ 131,856 $
107,518 Pre-tax non-ongoing items: Restructuring and asset
impairments - operating expenses (5,919 ) (2,093 ) 409A expense -
operating expenses 16,345 17,893
Ongoing operating expenses $ 142,282 $ 123,318
Ongoing operating income $ 76,209 $ 7,997 Ongoing
operating margin as a percent of revenue 15.6 % 2.5 %
Lam Research (NASDAQ:LRCX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lam Research (NASDAQ:LRCX)
Historical Stock Chart
From Sep 2023 to Sep 2024