Lam Research Corporation's (NASDAQ: LRCX) highlights for the
December 2011 quarter were:
Lam Research Corporation
Financial Highlights for the Quarter Ended December 25, 2011
(in thousands, except per share data and percentages)
U.S. GAAP Non-GAAP
------------- -------------
Revenue: $ 583,981 $ 583,981
Operating Margin: 8.1% 9.2%
Net Income: $ 33,212 $ 41,013
Diluted EPS: $ 0.27 $ 0.34
Lam Research Corporation today announced financial results for
the quarter ended December 25, 2011. Revenue for the period was
$584.0 million, gross margin was $234.8 million, or 40.2%,
operating expenses were $187.3 million, and net income was $33.2
million, or $0.27 per diluted share, compared to revenue of $680.4
million, gross margin of $283.9 million, or 41.7%, operating
expenses of $184.5 million, and net income of $71.8 million, or
$0.58 per diluted share, for the September 2011 quarter. Shipments
for the December 2011 quarter were $563 million compared to $580
million during the September 2011 quarter.
In addition to U.S. Generally Accepted Accounting Principles
(GAAP) results, this commentary contains non-GAAP financial
measures. The Company's non-GAAP results for both the December 2011
and September 2011 quarters exclude the amortization of convertible
note discounts and certain costs for restructuring and impairments.
Additionally, the Company's non-GAAP results for the December 2011
quarter exclude certain acquisition related costs. Management uses
non-GAAP gross margin, operating income, operating expenses,
operating margin, net income, and net income per diluted share to
evaluate the Company's operating and financial results. The Company
believes the presentation of non-GAAP results is useful to
investors for analyzing business trends and comparing performance
to prior periods, along with enhancing the investors' ability to
view the Company's results from management's perspective. Tables
presenting reconciliations of non-GAAP results to U.S. GAAP results
are included at the end of this press release and on the Company's
web site at http://investor.lamresearch.com.
Non-GAAP net income was $41.0 million, or $0.34 per diluted
share, in the December 2011 quarter compared to non-GAAP net income
of $78.3 million, or $0.63 per diluted share, for the September
2011 quarter. Non-GAAP gross margin for the December 2011 quarter
was $234.0 million, or 40.1%, compared to non-GAAP gross margin of
$283.9 million, or 41.7%, for the September 2011 quarter. The
sequential decrease in gross margin was due to both lower factory
and field utilization as a result of the decline in business
volumes and product mix. Non-GAAP operating expenses for the
December 2011 quarter decreased to $180.4 million compared with the
September 2011 quarter of $182.8 million as a result of reductions
in variable compensation associated with the operating income
level.
The geographic distribution of shipments and revenue during the
December 2011 quarter is shown in the following table:
Region Shipments Revenue
--------------- ------------ ------------
North America 19% 18%
Europe 8% 9%
Japan 10% 14%
Korea 37% 34%
Taiwan 18% 17%
Asia Pacific 8% 8%
Cash and cash equivalents, short-term investments and restricted
cash and investments balances were $2.4 billion at the end of the
December 2011 quarter, compared to $2.2 billion at the end of the
September 2011 quarter. The increase in cash and cash equivalents,
short-term investments and restricted cash and investments balances
during the quarter was primarily due to operating activities and
the cash settlement of a stock repurchase agreement. Cash flows
from operating activities were approximately $169.0 million or 29%
of revenue during the December 2011 quarter. Deferred revenue and
deferred profit balances at the end of the December 2011 quarter
increased to $191.8 million and $117.3 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 $15.5 million as of December 25, 2011.
"Lam delivered solid financial results in the December quarter
consistent with expectations, supported by initial leading edge
capacity shipments across all segments," said Martin Anstice, Lam's
president and chief executive officer. "Throughout 2011, we
executed on our long-term growth strategy by investing in the
technology and productivity solutions that address our customers'
most critical needs and position Lam to solidify and grow its
position in etch and single-wafer clean. In addition, as announced
in December, we plan to extend our product and services portfolio
and leadership in wafer fab equipment via the acquisition of
Novellus Systems. We believe that the complementary market
positions, technologies, product capabilities and leadership of
both companies will provide more comprehensive and faster solutions
to our customers and provide improved financial performance for our
shareholders," Anstice concluded.
Participants in the Solicitation
The directors and executive officers of Lam Research and
Novellus Systems, Inc. ("Novellus," and together with Lam Research
and their subsidiaries, the "Merged Company") may be deemed to be
participants in the solicitation of proxies in connection with the
approval of the proposed merger of Lam Research and Novellus (the
"Merger"). Lam Research plans to file the registration statement
that includes the joint proxy statement/prospectus with the
Securities and Exchange Commission ("SEC") in connection with the
solicitation of proxies to approve the proposed transaction.
Information regarding Lam Research's directors and executive
officers and their respective interests in Lam Research by security
holdings or otherwise is available in its Annual Report on Form
10-K filed with the SEC on August 19, 2011 and its Proxy Statement
on Schedule 14A filed with the SEC on September 19, 2011.
Information regarding Novellus Systems' directors and executive
officers and their respective interests in Novellus Systems by
security holdings or otherwise is available in its Annual Report on
Form 10-K filed with the SEC on February 25, 2011 and its Proxy
Statement on Schedule 14A filed with the SEC on April 8, 2011.
Additional information regarding the interests of such potential
participants is or will be included in the joint proxy
statement/prospectus and registration statement, and other relevant
materials to be filed with the SEC, when they become available,
including in connection with the solicitation of proxies to approve
the proposed transaction and to elect directors.
How to Find Further Information
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities, or a solicitation
of any vote or approval, nor shall there be any sale of securities
in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. In connection with the
proposed merger, Lam Research intends to file with the SEC a
registration statement on Form S-4 that will include a joint proxy
statement of Lam Research and Novellus Systems that also
constitutes a prospectus of Lam Research. Lam Research and Novellus
Systems will furnish the joint proxy statement/prospectus and other
relevant documents to their respective security holders in
connection with the proposed merger of Lam Research and Novellus
Systems. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, WE URGE
SECURITY HOLDERS AND INVESTORS TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS
THERETO) AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN
THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT LAM RESEARCH AND NOVELLUS
SYSTEMS AND THE PROPOSED MERGER. The proposals for the merger will
be made solely through the joint proxy statement/prospectus. In
addition, a copy of the joint proxy statement/prospectus (when it
becomes available) may be obtained free of charge from Lam Research
Corporation, Investor Relations, 4650 Cushing Parkway, Fremont, CA
94538-6401, or from Novellus Systems, Investor Relations, 4000
North First Street, San Jose, CA 95134. Security holders will be
able to obtain, free of charge, copies of the joint proxy
statement/prospectus and S-4 Registration Statement and any other
documents filed by Lam Research or Novellus Systems with the SEC in
connection with the proposed Merger at the SEC's website at
http://www.sec.gov, and at the companies' websites at
www.LamResearch.com and www.Novellus.com, respectively.
Caution Regarding Forward-Looking
Statements
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 of 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, the closure of our acquisition of Novellus Systems and
the benefits of that acquisition, such as faster customer solutions
and better financial performance for our shareholders. Some factors
that may affect these forward-looking statements include: the
shareholder votes on the planned Novellus acquisition, business
conditions in the consumer electronics industry, the semiconductor
industry and the overall economy; the strength of the financial
performance of our existing and prospective customers; the
introduction of new and innovative technologies; the occurrence and
pace of technology transitions and conversions; the actions of our
competitors, consumers, semiconductor companies and key suppliers
and subcontractors; and the success of research and development and
sales and marketing programs. 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 by us with the Securities
and Exchange Commission, including specifically our report on Form
10-K for the year ended June 26, 2011 and the report on Form 10-Q
for the three months ended September 25, 2011. 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.
Nothing contained herein shall be deemed to be a forecast,
projection or estimate of the future financial performance of Lam
Research, Novellus Systems, or the Merged Company, following the
implementation of the Merger or otherwise. No statement in this
announcement should be interpreted to mean that the earnings per
share, profits, margins or cash flows of Lam Research or the Merged
Company for the current or future financial years would necessarily
match or exceed the historical published figures.
Lam Research Corporation is a major supplier of wafer
fabrication equipment and services to the world's semiconductor
industry, where the company has been advancing semiconductor
manufacturing for more than 30 years. As a technology and market
share leader in plasma etch and single-wafer clean, Lam Research is
leveraging its combined expertise to address some of today's most
advanced semiconductor processing challenges. Headquartered in
Fremont, Calif., Lam Research maintains a global network of service
facilities throughout North America, Asia, and Europe to meet the
complex and changing needs of its global customer base. Lam's
common stock trades on The NASDAQ Global Select MarketSM under the
symbol LRCX. Lam is a NASDAQ-100® company. For more information,
visit http://www.lamresearch.com.
Consolidated Financial Tables Follow
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)
Three Months Ended Six Months Ended
-------------------------------- ----------------------
December September December December December
25, 25, 26, 25, 26,
2011 2011 2010 2011 2010
--------- ---------- --------- ---------- ----------
Revenue $ 583,981 $ 680,436 $ 870,714 $1,264,417 $1,676,588
Cost of goods
sold 350,014 396,553 463,281 746,567 891,829
Cost of goods
sold -
restructuring
and asset
impairments (859) - - (859) -
--------- ---------- --------- ---------- ----------
Total costs of
goods sold 349,155 396,553 463,281 745,708 891,829
--------- ---------- --------- ---------- ----------
Gross margin 234,826 283,883 407,433 518,709 784,759
Gross margin
as a percent
of revenue 40.2% 41.7% 46.8% 41.0% 46.8%
Research and
development 104,024 102,559 90,477 206,583 176,830
Selling, general
and
administrative 83,256 80,200 75,852 163,456 147,994
Restructuring and
impairments - 1,725 - 1,725 (5,163)
--------- ---------- --------- ---------- ----------
Total
operating
expenses 187,280 184,484 166,329 371,764 319,661
--------- ---------- --------- ---------- ----------
Operating
income 47,546 99,399 241,104 146,945 465,098
Operating
margin as a
percent of
revenue 8.1% 14.6% 27.7% 11.6% 27.7%
Other income
(expense), net (7,785) (12,073) 1,038 (19,858) 59
--------- ---------- --------- ---------- ----------
Income before
income taxes 39,761 87,326 242,142 127,087 465,157
Income tax expense 6,549 15,488 20,286 22,037 49,577
--------- ---------- --------- ---------- ----------
Net income $ 33,212 $ 71,838 $ 221,856 $ 105,050 $ 415,580
========= ========== ========= ========== ==========
Net income per
share:
Basic net income
per share $ 0.28 $ 0.58 $ 1.80 $ 0.87 $ 3.37
========= ========== ========= ========== ==========
Diluted net
income per
share $ 0.27 $ 0.58 $ 1.78 $ 0.86 $ 3.32
========= ========== ========= ========== ==========
Number of shares
used in per share
calculations:
Basic 119,739 123,130 123,101 121,435 123,384
========= ========== ========= ========== ==========
Diluted 120,873 124,049 124,786 122,382 124,999
========= ========== ========= ========== ==========
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 25, September 25, June 26,
2011 2011 2011
------------- ------------- -------------
(unaudited) (unaudited) (1)
ASSETS
Cash and cash equivalents $ 1,506,928 $ 1,339,318 $ 1,492,132
Short-term investments 712,856 713,087 630,115
Accounts receivable, net 462,243 523,240 590,568
Inventories 373,130 396,301 396,607
Deferred income taxes 78,479 78,330 78,435
Other current assets 79,215 81,740 85,408
------------- ------------- -------------
Total current assets 3,212,851 3,132,016 3,273,265
Property and equipment, net 272,409 266,411 270,458
Restricted cash and investments 165,217 165,239 165,256
Deferred income taxes 4,184 4,718 3,892
Goodwill and intangible assets 207,568 212,087 216,616
Other assets 115,918 117,870 124,380
------------- ------------- -------------
Total assets $ 3,978,147 $ 3,898,341 $ 4,053,867
============= ============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities $ 593,605 $ 591,981 $ 680,759
------------- ------------- -------------
Long-term debt, convertible notes,
and capital leases $ 749,078 $ 743,252 $ 738,488
Income taxes payable 115,616 116,509 113,582
Other long-term liabilities 57,104 56,717 51,193
Stockholders' equity 2,462,744 2,389,882 2,469,845
------------- ------------- -------------
Total liabilities and
stockholders' equity $ 3,978,147 $ 3,898,341 $ 4,053,867
============= ============= =============
(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 September December December December
25, 25, 26, 25, 26,
2011 2011 2010 2011 2010
---------- ---------- --------- ---------- ---------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income $ 33,212 $ 71,838 $ 221,856 $ 105,050 $ 415,580
Adjustments to
reconcile net
income to net
cash provided by
(used for)
operating
activities:
Depreciation and
amortization 22,372 21,360 18,663 43,732 36,611
Deferred income
taxes (633) - (3,039) (633) (3,822)
Restructuring
and impairment
charges, net (859) 1,725 - 866 (5,163)
Equity-based
compensation
expense 18,224 17,744 12,759 35,968 25,768
Income tax
benefit on
equity-based
compensation
plans 470 659 (918) 1,129 4,165
Excess tax
benefit on
equity-based
compensation
plans (204) (1,951) 711 (2,155) (3,228)
Amortization of
convertible
note discount 6,671 6,593 - 13,264 -
Impairment of
investment - 1,724 - 1,724 -
Loss on equity
method
investment 202 - - 202 -
Other, net 881 1,423 (1,600) 2,304 (3,564)
Changes in
operating
assets and
liabilities: 88,680 (34,215) (62,849) 54,465 (25,020)
---------- ---------- --------- ---------- ---------
Net cash
provided by
operating
activities 169,016 86,900 185,583 255,916 441,327
---------- ---------- --------- ---------- ---------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Capital
expenditures and
intangible assets (26,682) (15,732) (38,025) (42,414) (57,155)
Net
sales/maturities
(purchases) of
available-for-
sale securities (4,194) (85,259) (1,160) (89,453) (25,666)
Purchase of equity
method investment (10,740) - - (10,740) -
Receipt of loan
payments 8,375 - - 8,375 -
Proceeds from sale
of assets 2,677 - 1,544 2,677 1,544
Transfer of
restricted cash
and investments 3 17 - 20 (10)
---------- ---------- --------- ---------- ---------
Net cash used
for investing
activities (30,561) (100,974) (37,641) (131,535) (81,287)
---------- ---------- --------- ---------- ---------
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Principal payments
on long-term debt
and capital lease
obligations (1,576) (1,564) (78) (3,140) (3,411)
Excess tax benefit
on equity-based
compensation
plans 204 1,951 (711) 2,155 3,228
Net cash received
in settlement
(paid in advance
for) stock
repurchase
contracts 51,005 (75,000) (50,000) (23,995) (50,000)
Treasury stock
purchases (20,642) (72,053) (4,151) (92,695) (148,946)
Reissuances of
treasury stock
related to
employee stock
purchase plan - 8,858 - 8,858 7,155
Proceeds from
issuance of
common stock 1,311 164 3,407 1,475 4,242
---------- ---------- --------- ---------- ---------
Net cash
provided by
(used for)
financing
activities 30,302 (137,644) (51,533) (107,342) (187,732)
---------- ---------- --------- ---------- ---------
Effect of exchange
rate changes on
cash (1,147) (1,096) 4,370 (2,243) 10,985
Net increase
(decrease) in
cash and cash
equivalents 167,610 (152,814) 100,779 14,796 183,293
Cash and cash
equivalents at
beginning of
period 1,339,318 1,492,132 628,281 1,492,132 545,767
---------- ---------- --------- ---------- ---------
Cash and cash
equivalents at
end of period $1,506,928 $1,339,318 $ 729,060 $1,506,928 $ 729,060
========== ========== ========= ========== =========
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited)
Three Months Three Months
Ended Ended
------------- -------------
December 25, September 25,
2011 2011
------------- -------------
U.S. GAAP net income $ 33,212 $ 71,838
Pre-tax non-GAAP items:
Restructuring and impairments - cost of
goods sold (859) -
Restructuring and impairments - operating
expenses - 1,725
Acquisition costs - operating expenses 6,860 -
Amortization of convertible note discount -
other income (expense), net 6,671 6,593
Impairment of investment - other income
(expense), net - 1,724
Net tax benefit on non-GAAP items (4,871) (3,615)
------------- -------------
Non-GAAP net income $ 41,013 $ 78,265
============= =============
Non-GAAP net income per diluted share $ 0.34 $ 0.63
============= =============
Number of shares used for diluted per share
calculation 120,873 124,049
Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating
Income to Non-GAAP Gross Margin,
Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited)
Three Months Three Months
Ended Ended
------------- -------------
December 25, September 25,
2011 2011
------------- -------------
U.S. GAAP gross margin $ 234,826 $ 283,883
Pre-tax non-GAAP items:
Restructuring and impairments - cost of
goods sold (859) -
------------- -------------
Non-GAAP gross margin $ 233,967 $ 283,883
============= =============
U.S. GAAP gross margin as a percentage of
revenue 40.2% 41.7%
Non-GAAP gross margin as a percentage of
revenue 40.1% 41.7%
U.S. GAAP operating expenses $ 187,280 $ 184,484
Pre-tax non-GAAP items:
Restructuring and impairments - operating
expenses - (1,725)
Acquisition costs - operating expenses (6,860) -
------------- -------------
Non-GAAP operating expenses $ 180,420 $ 182,759
============= =============
Non-GAAP operating income $ 53,547 $ 101,124
============= =============
Non-GAAP operating margin as a percent of
revenue 9.2% 14.9%
Lam Research Corporation Contact: Shanye Hudson Director,
Investor Relations Phone: 510-572-4589 e-mail:
shanye.hudson@lamresearch.com
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
