View PDF
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
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 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
"Lam delivered solid financial results in the December quarter consistent with expectations, supported by initial leading edge capacity shipments across all segments," said
Participants in the Solicitation
The directors and executive officers of
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,
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
Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of
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
Source:
News Provided by Acquire Media