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Lam Research Corporation
Financial Highlights for the Quarter
Ended September 25, 2011
(in thousands, except per share data and
percentages)
U.S. GAAP Non-GAAP
--------- ---------
Revenue: $ 680,436 $ 680,436
Operating Margin: 14.6% 14.9%
Net Income: $ 71,838 $ 78,265
Diluted EPS: $ 0.58 $ 0.63
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
Non-GAAP net income was
The geographic distribution of shipments and revenue during the
Region Shipments Revenue
----------------- ------------ ------------
North America 22% 19%
Europe 10% 11%
Japan 16% 18%
Korea 27% 25%
Taiwan 10% 13%
Asia Pacific 15% 14%
Cash and cash equivalents, short-term investments and restricted cash and investments balances were
"As expected, our September quarter results reflect the impact of ongoing macroeconomic uncertainty on wafer fab equipment spending," said
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, our future commitment to our current strategic priorities, future wafer fab spending, customer investment decisions, and our ability to sustain technical leadership, strengthen our customer relationships and drive long term growth. Some factors that may affect these forward-looking statements include: 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
Consolidated Financial Tables Follow
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)
Three Months Ended
-------------------------------------------
September 25, June 26, September 26,
2011 2011 2010
------------- ------------- -------------
Revenue $ 680,436 $ 752,018 $ 805,874
Cost of goods sold 396,553 413,564 428,548
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Gross margin 283,883 338,454 377,326
Gross margin as a percent of
revenue 41.7% 45.0% 46.8%
Research and development 102,559 99,583 86,353
Selling, general and
administrative 80,200 79,938 72,142
Restructuring and impairments 1,725 16,742 (5,163)
------------- ------------- -------------
Total operating expenses 184,484 196,263 153,332
------------- ------------- -------------
Operating income 99,399 142,191 223,994
Operating margin as a percent
of revenue 14.6% 18.9% 27.8%
Other expense, net (12,073) (5,131) (979)
------------- ------------- -------------
Income before income taxes 87,326 137,060 223,015
Income tax expense 15,488 11,132 29,291
------------- ------------- -------------
Net income $ 71,838 $ 125,928 $ 193,724
============= ============= =============
Net income per share:
Basic net income per share $ 0.58 $ 1.02 $ 1.57
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Diluted net income per share $ 0.58 $ 1.01 $ 1.55
============= ============= =============
Number of shares used in per
share calculations:
Basic 123,130 123,863 123,665
============= ============= =============
Diluted 124,049 125,086 125,202
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LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 25, June 26,
2011 2011
------------- -------------
(unaudited) (1)
ASSETS
Cash and cash equivalents $ 1,339,318 $ 1,492,132
Short-term investments 713,087 630,115
Accounts receivable, net 523,240 590,568
Inventories 396,301 396,607
Deferred income taxes 78,330 78,435
Other current assets 84,353 88,935
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Total current assets 3,134,629 3,276,792
Property and equipment, net 266,411 270,458
Restricted cash and investments 165,239 165,256
Deferred income taxes 4,718 3,892
Goodwill and intangible assets 212,087 216,616
Other assets 117,870 124,380
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Total assets $ 3,900,954 $ 4,057,394
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 594,594 $ 684,286
------------- -------------
Long-term debt, convertible notes, and capital
leases $ 743,252 $ 738,488
Income taxes payable 116,509 113,582
Other long-term liabilities 56,717 51,193
Stockholders' equity 2,389,882 2,469,845
------------- -------------
Total liabilities and stockholders' equity $ 3,900,954 $ 4,057,394
============= =============
(1) Derived from audited financial statements
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
-------------------------------------------
September 25, June, 26 September 26,
2011 2011 2010
------------- ------------- -------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 71,838 $ 125,928 $ 193,724
Adjustments to reconcile net
income to net cash provided by
(used for) operating
activities:
Depreciation and amortization 21,360 19,972 17,948
Deferred income taxes - (6,166) (783)
Restructuring and impairment
charges, net 1,725 16,742 (5,163)
Equity-based compensation
expense 17,744 14,788 13,009
Income tax benefit on equity-
based compensation plans 659 9,283 5,083
Excess tax benefit on equity-
based compensation plans (1,951) (8,184) (3,939)
Amortization of convertible
note discount 6,593 3,554 -
Impairment of investment 1,724 - -
Other, net 1,423 477 (1,964)
Changes in operating assets
and liabilities: (34,215) 21,714 37,829
------------- ------------- -------------
Net cash provided by
operating activities 86,900 198,108 255,744
------------- ------------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures and
intangible assets (15,732) (34,571) (19,130)
Net sales/maturities
(purchases) of available-for-
sale securities (85,259) (316,789) (24,506)
Transfer of restricted cash and
investments 17 (8) (10)
------------- ------------- -------------
Net cash used for investing
activities (100,974) (351,368) (43,646)
------------- ------------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal payments on long-term
debt and capital lease
obligations (1,564) (81) (3,333)
Net proceeds from issuance of
long-term debt & convertible
notes - 882,831 -
Proceeds from sale of warrants - 133,830 -
Purchase of convertible note
hedge - (181,125) -
Excess tax benefit on equity-
based compensation plans 1,951 8,184 3,939
Net cash received in settlement
(paid in advance for) stock
repurchase contracts (75,000) (99,589) -
Treasury stock purchases (72,053) (53,753) (144,795)
Reissuances of treasury stock
related to employee stock
purchase plan 8,858 7,518 7,155
Proceeds from issuance of
common stock 164 2,179 835
------------- ------------- -------------
Net cash provided by (used
for) financing activities (137,644) 699,994 (136,199)
------------- ------------- -------------
Effect of exchange rate changes
on cash (1,096) 2,688 6,615
Net increase (decrease) in cash
and cash equivalents (152,814) 549,422 82,514
Cash and cash equivalents at
beginning of period 1,492,132 942,710 545,767
------------- ------------- -------------
Cash and cash equivalents at
end of period $ 1,339,318 $ 1,492,132 $ 628,281
============= ============= =============
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
------------- -------------
September 25, June 26,
2011 2011
------------- -------------
U.S. GAAP net income $ 71,838 $ 125,928
Pre-tax non-GAAP items:
Restructuring and impairments - operating
expenses 1,725 16,742
Amortization of convertible note discount -
other income (expense), net 6,593 3,554
Impairment of investment - other
income(expense), net 1,724 -
Net tax benefit on non-GAAP items (3,615) (8,224)
Tax expense associated with legal entity
restructuring - 4,289
------------- -------------
Non-GAAP net income $ 78,265 $ 142,289
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Non-GAAP net income per diluted share $ 0.63 $ 1.14
============= =============
Number of shares used for diluted per share
calculation 124,049 125,086
Reconciliation of U.S. GAAP Operating Expenses and Operating Income to Non-
GAAP Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited)
Three Months Three Months
Ended Ended
------------- -------------
September 25, June 26,
2011 2011
------------- -------------
U.S. GAAP gross margin $ 283,883 $ 338,454
U.S. GAAP operating expenses $ 184,484 $ 196,263
Pre-tax non-GAAP items:
Restructuring and impairments - operating
expenses (1,725) (16,742)
------------- -------------
Non-GAAP operating expenses $ 182,759 $ 179,521
============= =============
Non-GAAP operating income $ 101,124 $ 158,933
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Non-GAAP operating margin as a percent of
revenue 14.9% 21.1%
Lam Research Corporation Contact:Shanye Hudson Director, Investor Relations phone: 510-572-4589 e-mail: Email Contact
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