View PDF- Achieved revenue of
$906.9 million , up 22.3% from prior quarter, in first full quarter of consolidated results with Novellus - Reported GAAP gross margin of 36.8%, GAAP operating margin of 1.8% and GAAP EPS of
$0.02 - Exceeded earnings guidance across multiple non-GAAP metrics: gross margin of 44.4%, operating margin of 13.0%, EPS of
$0.53 - Delivered targeted progress toward integration and synergies
Lam Research Corporation
Financial Highlights for the Quarter Ended September 23, 2012
(in thousands, except per share data and percentages)
U.S. GAAP Non-GAAP
----------- -----------
Revenue: $ 906,888 $ 906,888
Operating Margin: 1.8% 13.0%
Net Income: $ 2,768 $ 97,013
Diluted EPS: $ 0.02 $ 0.53
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
"Despite a more uncertain industry environment,
Cash and cash equivalents, short-term investments and restricted cash and investments balances decreased to
The geographic distribution of shipments and revenue during the
Region Shipments Revenue
----------- -----------
North America 18% 18%
Europe 7% 7%
Japan 8% 8%
Korea 16% 24%
Taiwan 29% 28%
Asia Pacific 22% 15%
Use of Non-GAAP Financial Measures
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.
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, industry conditions, our ability to make progress towards our synergy targets for the Novellus transaction, our ability to achieve the appropriate balance between cost management and continued investment in next-generation solutions for our customers, and our ability to realize profitable growth for Lam. 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 23, June 24, September 25,
2012 2012 2011
------------ ------------ ------------
Revenue $ 906,888 $ 741,814 $ 680,436
Cost of goods sold 573,002 443,601 396,553
------------ ------------ ------------
Gross margin 333,886 298,213 283,883
Gross margin as a percent of
revenue 36.8% 40.2% 41.7%
Research and development 163,311 124,528 102,559
Selling, general and
administrative 153,863 141,015 80,200
Restructuring and impairments - - 1,725
------------ ------------ ------------
Total operating expenses 317,174 265,543 184,484
------------ ------------ ------------
Operating income 16,712 32,670 99,399
Operating margin as a percent
of revenue 1.8% 4.4% 14.6%
Other income (expense), net (9,938) (9,889) (12,073)
------------ ------------ ------------
Income before income taxes 6,774 22,781 87,326
Income tax expense 4,006 4,712 15,488
------------ ------------ ------------
Net income $ 2,768 $ 18,069 $ 71,838
============ ============ ============
Net income per share:
Basic net income per share $ 0.02 $ 0.13 $ 0.58
============ ============ ============
Diluted net income per share $ 0.02 $ 0.13 $ 0.58
============ ============ ============
Number of shares used in per share
calculations:
Basic 179,928 133,997 123,130
============ ============ ============
Diluted 181,926 135,842 124,049
============ ============ ============
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 23, June 24,
2012 2012
------------- -------------
(unaudited) (1)
ASSETS
Cash and cash equivalents $ 1,411,466 $ 1,564,752
Short-term investments 1,312,767 1,297,931
Accounts receivable, net 640,217 765,818
Inventories 567,920 632,853
Deferred income taxes 136,556 47,782
Other current assets 100,490 105,973
------------- -------------
Total current assets 4,169,416 4,415,109
Property and equipment, net 593,202 584,596
Restricted cash and investments 166,196 166,335
Goodwill and intangible assets 2,642,770 2,686,730
Other assets 152,762 151,882
------------- -------------
Total assets $ 7,724,346 $ 8,004,652
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 854,257 $ 1,426,928
------------- -------------
Long-term debt, convertible notes, and capital
leases $ 1,278,792 $ 761,783
Income taxes payable 282,844 274,240
Other long-term liabilities 296,807 219,577
------------- -------------
Total liabilities 2,712,700 2,682,528
============= =============
Senior convertible notes - 190,343
Stockholders' equity 5,011,646 5,131,781
------------- -------------
Total liabilities and stockholders' equity $ 7,724,346 $ 8,004,652
============= =============
(1) Derived from audited financial statements
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
----------------------------------------
September 23, June 24, September 25,
2012 2012 2011
------------ ------------ ------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 2,768 $ 18,069 $ 71,838
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 74,816 34,576 21,360
Deferred income taxes (12,017) 39,356 -
Restructuring and impairment
charges, net - - 1,725
Equity-based compensation
expense 24,414 29,174 17,744
Income tax benefit on equity-
based compensation plans - 1,429 659
Excess tax benefit on equity-
based compensation plans - (394) (1,951)
Amortization of convertible note
discount 7,752 7,014 6,593
Impairment of investment - - 1,724
Other, net 8,406 7,206 1,423
Changes in operating assets and
liabilities: 143,123 (39,715) (34,215)
------------ ------------ ------------
Net cash provided by operating
activities 249,262 96,715 86,900
------------ ------------ ------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures and
intangible assets (43,965) (36,880) (15,732)
Cash acquired in business
acquisition - 418,681 -
Net sales/maturities (purchases)
of available-for-sale securities (16,638) 329,689 (85,259)
Transfer of restricted cash and
investments 146 (29) 17
------------ ------------ ------------
Net cash provided by (used
for) investing activities (60,457) 711,461 (100,974)
------------ ------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal payments on long-term
debt and capital lease
obligations (665) (1,101) (1,564)
Excess tax benefit on equity-based
compensation plans - 394 1,951
Net cash received in settlement
(paid in advance for) stock
repurchase contracts - - (75,000)
Treasury stock purchases (355,079) (661,059) (72,053)
Reissuances of treasury stock
related to employee stock
purchase plan 9,925 8,765 8,858
Proceeds from issuance of common
stock 951 - 164
------------ ------------ ------------
Net cash used for financing
activities (344,868) (653,001) (137,644)
------------ ------------ ------------
Effect of exchange rate changes on
cash 2,777 (690) (1,096)
Net increase (decrease) in cash
and cash equivalents (153,286) 154,485 (152,814)
Cash and cash equivalents at
beginning of period 1,564,752 1,410,267 1,492,132
------------ ------------ ------------
Cash and cash equivalents at end
of period $ 1,411,466 $ 1,564,752 $ 1,339,318
============ ============ ============
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 23, June 24,
2012 2012
------------- -------------
U.S. GAAP net income $ 2,768 $ 18,069
Pre-tax non-GAAP items:
Costs associated with rationalization of
certain product configurations - cost of
goods sold 3,210 4,045
Amortization related to intangible assets
acquired in Novellus transaction - cost of
goods sold 20,715 4,540
Acquisition-related inventory fair value
impact - cost of goods sold 43,842 5,864
Integration costs - cost of goods sold 694 -
Acquisition-related costs - operating
expenses - 37,374
Integration costs - operating expenses 13,500 7,293
Amortization related to intangible assets
acquired in Novellus transaction -
operating expenses 19,418 4,256
Costs associated with rationalization of
certain product configurations - operating
expenses - 1,850
Amortization of convertible note discount,
Lam notes - other income (expense), net 6,910 6,830
Amortization of convertible note discount,
Novellus assumed notes - other income
(expense), net 842 184
Acquisition-related costs - other income
(expense), net - 2,300
Net tax benefit on non-GAAP items (14,886) (11,732)
------------- -------------
Non-GAAP net income $ 97,013 $ 80,873
============= =============
Non-GAAP net income per diluted share $ 0.53 $ 0.60
============= =============
Number of shares used for diluted per share
calculation 181,926 135,842
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
------------- -------------
September 23, June 24,
2012 2012
------------- -------------
U.S. GAAP gross margin $ 333,886 $ 298,213
Pre-tax non-GAAP items:
Costs associated with rationalization of
certain product configurations - cost of
goods sold 3,210 4,045
Amortization related to intangible assets
acquired in Novellus transaction - cost of
goods sold 20,715 4,540
Acquisition-related inventory fair value
impact - cost of goods sold 43,842 5,864
Integration costs - cost of goods sold 694 -
------------- -------------
Non-GAAP gross margin $ 402,347 $ 312,662
============= =============
U.S. GAAP gross margin as a percentage of
revenue 36.8% 40.2%
Non-GAAP gross margin as a percentage of
revenue 44.4% 42.1%
U.S. GAAP operating expenses $ 317,174 $ 265,543
Pre-tax non-GAAP items:
Acquisition-related costs - operating
expenses - (37,374)
Integration costs - operating expenses (13,500) (7,293)
Amortization related to intangible assets
acquired in Novellus transaction -
operating expenses (19,418) (4,256)
Costs associated with rationalization of
certain product configurations - operating
expenses - (1,850)
------------- -------------
Non-GAAP operating expenses $ 284,256 $ 214,770
============= =============
Non-GAAP operating income $ 118,091 $ 97,892
============= =============
Non-GAAP operating margin as a percent of
revenue 13.0% 13.2%
Lam Research Corporation Contact:Shanye Hudson Investor Relations phone: 510-572-4589 e-mail: shanye.hudson@lamresearch.comEd Rebello Corporate Communications phone: 510-572-6603 e-mail: edward.rebello@lamresearch.com
Source:
News Provided by Acquire Media