Highlights for the
- Revenue of
$4.15 billion . U.S. GAAP gross margin of 46.2%,U.S. GAAP operating income as a percentage of revenue of 31.7%, andU.S. GAAP diluted EPS of$7.98 .- Non-GAAP gross margin of 46.5%, non-GAAP operating income as a percentage of revenue of 32.6%, and non-GAAP diluted EPS of
$8.09 .
Key Financial Data for the Quarters Ended
(in thousands, except per-share data, percentages, and basis points)
June 2021 | March 2021 | Change Q/Q | |||||||||
Revenue | $ | 4,145,179 | $ | 3,847,654 | +8% | ||||||
Gross margin as percentage of revenue | 46.2 | % | 46.3 | % | - 10 bps | ||||||
Operating income as percentage of revenue | 31.7 | % | 31.1 | % | + 60 bps | ||||||
Diluted EPS | $ | 7.98 | $ | 7.41 | +8% | ||||||
Non-GAAP | |||||||||||
June 2021 | March 2021 | Change Q/Q | |||||||||
Revenue | $ | 4,145,179 | $ | 3,847,654 | +8% | ||||||
Gross margin as percentage of revenue | 46.5 | % | 46.3 | % | + 20 bps | ||||||
Operating income as percentage of revenue | 32.6 | % | 31.6 | % | + 100 bps | ||||||
Diluted EPS | $ | 8.09 | $ | 7.49 | +8% |
For the
Non-GAAP Financial Results
For the
“Lam continued its record performance in the June quarter, capping a fiscal 2021 with more than 45% revenue growth and an increase of over 70% in earnings per share,” said
Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances remained flat at
Revenue
The geographic distribution of revenue during the
Region | Revenue |
37% | |
30% | |
13% | |
9% | |
5% | |
3% | |
3% |
The following table presents revenue disaggregated between system and customer support-related revenue:
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2021 |
2021 |
2020 |
2021 |
2020 |
|||||||||||||||
(In thousands) | |||||||||||||||||||
Systems revenue | $ | 2,763,877 | $ | 2,545,306 | $ | 1,865,249 | $ | 9,764,845 | $ | 6,625,130 | |||||||||
Customer support-related revenue and other | 1,381,302 | 1,302,348 | 926,615 | 4,861,305 | 3,419,606 | ||||||||||||||
$ | 4,145,179 | $ | 3,847,654 | $ | 2,791,864 | $ | 14,626,150 | $ | 10,044,736 |
System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.
Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ended
Reconciling Items | Non-GAAP | |||||||||||||||||||
Revenue | +/- | — | +/- | |||||||||||||||||
Gross margin as a percentage of revenue | 46.0% | +/- | 1% | $ | 1 | Million | 46.0% | +/- | 1% | |||||||||||
Operating income as a percentage of revenue | 31.7% | +/- | 1% | $ | 13 | Million | 32.0% | +/- | 1% | |||||||||||
Net income per diluted share | +/- | $ | 12 | Million | +/- | |||||||||||||||
Diluted share count | 143 Million | — | 143 Million |
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, gains or losses on equity investments, other investments, or other significant arrangements that may be completed or realized after the date of this release.
- Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations,
$1 million . - Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations,
$13 million . - Net income per diluted share - amortization related to intangible assets acquired though business combinations,
$13 million ; amortization of note discounts,$1 million ; and associated tax benefit for non-GAAP items ($2 million ); totaling$12 million .
Use of Non-GAAP Financial Results
In addition to
Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, 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 investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not 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 to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margins, operating income and net income; the factors affecting wafer fabrication equipment investment or the future levels of such investment; the extent to which our technology is differentiated and the extent to which we will collaborate with customers; and our ability to maintain or extend our leadership across any or all market segments. Some factors that may affect these forward-looking statements include: the severity, magnitude and duration of the COVID–19 pandemic (and the related governmental, public health, business and community responses to it), and their impacts on our business, results of operations and financial condition, are evolving and are highly uncertain and unpredictable; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; the actions of our customers and competitors may be inconsistent with our expectations; trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; and widespread outbreaks of illness may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the
Consolidated Financial Tables Follow.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
2021 |
2021 |
2020 |
2021 |
2020 |
|||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (1) | |||||||||||||||||||||
Revenue | $ | 4,145,179 | $ | 3,847,654 | $ | 2,791,864 | $ | 14,626,150 | $ | 10,044,736 | |||||||||||||||
Cost of goods sold | 2,229,978 | 2,067,523 | 1,511,532 | 7,820,844 | 5,436,043 | ||||||||||||||||||||
Gross margin | 1,915,201 | 1,780,131 | 1,280,332 | 6,805,306 | 4,608,693 | ||||||||||||||||||||
Gross margin as a percent of revenue | 46.2 | % | 46.3 | % | 45.9 | % | 46.5 | % | 45.9 | % | |||||||||||||||
Research and development | 381,749 | 381,120 | 338,810 | 1,493,408 | 1,252,412 | ||||||||||||||||||||
Selling, general and administrative | 217,525 | 203,703 | 185,800 | 829,875 | 682,479 | ||||||||||||||||||||
Total operating expenses | 599,274 | 584,823 | 524,610 | 2,323,283 | 1,934,891 | ||||||||||||||||||||
Operating income | 1,315,927 | 1,195,308 | 755,722 | 4,482,023 | 2,673,802 | ||||||||||||||||||||
Operating income as a percent of revenue | 31.7 | % | 31.1 | % | 27.1 | % | 30.6 | % | 26.6 | % | |||||||||||||||
Other expense, net | (7,166 | ) | (35,320 | ) | (7,553 | ) | (111,219 | ) | (98,824 | ) | |||||||||||||||
Income before income taxes | 1,308,761 | 1,159,988 | 748,169 | 4,370,804 | 2,574,978 | ||||||||||||||||||||
Income tax expense | (164,104 | ) | (88,867 | ) | (51,496 | ) | (462,346 | ) | (323,225 | ) | |||||||||||||||
Net income | $ | 1,144,657 | $ | 1,071,121 | $ | 696,673 | $ | 3,908,458 | $ | 2,251,753 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | $ | 8.02 | $ | 7.51 | $ | 4.79 | $ | 27.22 | $ | 15.55 | |||||||||||||||
Diluted | $ | 7.98 | $ | 7.41 | $ | 4.73 | $ | 26.90 | $ | 15.10 | |||||||||||||||
Number of shares used in per share calculations: | |||||||||||||||||||||||||
Basic | 142,662 | 142,676 | 145,295 | 143,609 | 144,814 | ||||||||||||||||||||
Diluted | 143,514 | 144,609 | 147,416 | 145,320 | 149,090 | ||||||||||||||||||||
Cash dividend declared per common share | $ | 1.30 | $ | 1.30 | $ | 1.15 | $ | 5.20 | $ | 4.60 | |||||||||||||||
(1) Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
2021 |
2021 |
2020 |
||||||||||
(unaudited) | (unaudited) | (1) | ||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 4,418,263 | $ | 3,673,366 | $ | 4,915,172 | ||||||
Investments | 1,310,872 | 2,116,101 | 1,795,080 | |||||||||
Accounts receivable, net | 3,026,430 | 2,809,068 | 2,097,099 | |||||||||
Inventories | 2,689,294 | 2,552,032 | 1,900,024 | |||||||||
Prepaid expenses and other current assets | 207,528 | 171,703 | 146,160 | |||||||||
Total current assets | 11,652,387 | 11,322,270 | 10,853,535 | |||||||||
Property and equipment, net | 1,303,479 | 1,279,836 | 1,071,499 | |||||||||
Restricted cash and investments | 252,487 | 253,460 | 253,911 | |||||||||
1,622,499 | 1,633,254 | 1,652,968 | ||||||||||
Other assets | 1,061,300 | 796,093 | 727,134 | |||||||||
Total assets | $ | 15,892,152 | $ | 15,284,913 | $ | 14,559,047 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current portion of long-term debt and finance lease obligations | $ | 11,349 | $ | 825,434 | $ | 839,877 | ||||||
Other current liabilities | 3,516,518 | 2,786,899 | 2,322,565 | |||||||||
Total current liabilities | 3,527,867 | 3,612,333 | 3,162,442 | |||||||||
Long-term debt and finance lease obligations | 4,990,333 | 4,991,613 | 4,970,848 | |||||||||
Income taxes payable | 948,037 | 924,629 | 909,709 | |||||||||
Other long-term liabilities | 398,727 | 381,505 | 332,559 | |||||||||
Total liabilities | 9,864,964 | 9,910,080 | 9,375,558 | |||||||||
Temporary equity, convertible notes | — | 3,217 | 10,995 | |||||||||
Stockholders’ equity (2) | 6,027,188 | 5,371,616 | 5,172,494 | |||||||||
Total liabilities and stockholders’ equity | $ | 15,892,152 | $ | 15,284,913 | $ | 14,559,047 | ||||||
(1) Derived from audited financial statements. | ||||||||||||
(2) Common shares issued and outstanding were 142,501 as of |
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
2021 |
2021 |
2020 |
2021 |
2020 |
|||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (1) | |||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||
Net income | 1,144,657 | 1,071,121 | 696,673 | 3,908,458 | 2,251,753 | ||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||
Depreciation and amortization | 78,397 | 79,453 | 71,083 | 307,151 | 268,525 | ||||||||||||||||||||
Deferred income taxes | (146,029 | ) | (1,136 | ) | (92,293 | ) | (151,477 | ) | (17,777 | ) | |||||||||||||||
Equity-based compensation expense | 56,321 | 55,746 | 53,153 | 220,164 | 189,197 | ||||||||||||||||||||
Other, net | (27,786 | ) | (635 | ) | (9,493 | ) | (17,392 | ) | 6,628 | ||||||||||||||||
Changes in operating assets and liabilities | 330,375 | (39,469 | ) | 93,925 | (678,741 | ) | (571,875 | ) | |||||||||||||||||
Net cash provided by operating activities | 1,435,935 | 1,165,080 | 813,048 | 3,588,163 | 2,126,451 | ||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||
Capital expenditures and intangible assets | (104,622 | ) | (89,596 | ) | (50,554 | ) | (349,096 | ) | (203,239 | ) | |||||||||||||||
Net sale (purchase) of available-for-sale securities | 799,965 | 233,529 | (354,350 | ) | 464,522 | (15,000 | ) | ||||||||||||||||||
Other, net | (6,282 | ) | (27,997 | ) | (25,305 | ) | (42,155 | ) | (25,845 | ) | |||||||||||||||
Net cash provided by (used for) investing activities | 689,061 | 115,936 | (430,209 | ) | 73,271 | (244,084 | ) | ||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||
Proceeds from issuance of long-term debt, net of issuance costs | — | — | 1,974,651 | — | 1,974,651 | ||||||||||||||||||||
Principal payments on debt | (822,046 | ) | (16,245 | ) | (2,948 | ) | (862,060 | ) | (667,537 | ) | |||||||||||||||
Proceeds from borrowings on revolving credit facility | — | — | — | — | 1,250,000 | ||||||||||||||||||||
Repayments of borrowings on revolving credit facility | — | — | (1,250,000 | ) | — | (1,250,000 | ) | ||||||||||||||||||
(431,255 | ) | (1,094,571 | ) | (41,017 | ) | (2,697,704 | ) | (1,369,649 | ) | ||||||||||||||||
Dividends paid | (185,385 | ) | (186,551 | ) | (167,739 | ) | (726,992 | ) | (656,838 | ) | |||||||||||||||
Reissuance of treasury stock related to employee stock purchase plan | 56,330 | — | 46,992 | 97,764 | 85,439 | ||||||||||||||||||||
Proceeds from issuance of common stock | 851 | 9,626 | 1,869 | 24,123 | 8,084 | ||||||||||||||||||||
Other, net | (269 | ) | (665 | ) | 1,592 | (2,113 | ) | 1,920 | |||||||||||||||||
Net cash (used for) provided by financing activities | (1,381,774 | ) | (1,288,406 | ) | 563,400 | (4,166,982 | ) | (623,930 | ) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 702 | (5,756 | ) | 7,103 | 7,215 | (2,750 | ) | ||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 743,924 | (13,146 | ) | 953,342 | (498,333 | ) | 1,255,687 | ||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 3,926,826 | 3,939,972 | 4,215,741 | 5,169,083 | 3,913,396 | ||||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 4,670,750 | $ | 3,926,826 | $ | 5,169,083 | $ | 4,670,750 | $ | 5,169,083 | |||||||||||||||
(1) Derived from audited financial statements. |
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended | |||||||
2021 |
2021 |
||||||
Revenue | $ | 4,145,179 | $ | 3,847,654 | |||
Gross margin | $ | 1,926,323 | $ | 1,783,209 | |||
Gross margin as percentage of revenue | 46.5 | % | 46.3 | % | |||
Operating expenses | $ | 573,707 | $ | 566,507 | |||
Operating income | $ | 1,352,616 | $ | 1,216,702 | |||
Operating income as a percentage of revenue | 32.6 | % | 31.6 | % | |||
Net income | $ | 1,161,211 | $ | 1,083,532 | |||
Net income per diluted share | $ | 8.09 | $ | 7.49 | |||
Shares used in per share calculation - diluted | 143,514 | 144,609 |
Reconciliation of
(in thousands, except per share data)
(unaudited)
Three Months Ended | |||||||||
2021 |
2021 |
||||||||
$ | 1,144,657 | $ | 1,071,121 | ||||||
Pre-tax non-GAAP items: | |||||||||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 1,092 | 1,092 | |||||||
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold | 4,256 | 1,986 | |||||||
Product rationalization - cost of goods sold | 5,774 | — | |||||||
EDC related liability valuation increase - research and development | 7,661 | 3,575 | |||||||
Product rationalization - research and development | 426 | — | |||||||
Amortization related to intangible assets acquired through certain business combinations -selling, general and administrative | 12,357 | 12,357 | |||||||
EDC related liability valuation increase - selling, general and administrative | 5,123 | 2,384 | |||||||
Amortization of note discounts - other expense, net | 923 | 998 | |||||||
Gain on EDC related asset - other expense, net | (17,184 | ) | (7,520 | ) | |||||
Net income tax benefit on non-GAAP items | (3,874 | ) | (2,461 | ) | |||||
Non-GAAP net income | $ | 1,161,211 | $ | 1,083,532 | |||||
Non-GAAP net income per diluted share | $ | 8.09 | $ | 7.49 | |||||
$ | 7.98 | $ | 7.41 | ||||||
143,514 | 144,609 |
Reconciliation of
Expenses and Operating Income
(in thousands, except percentages)
(unaudited)
Three Months Ended | |||||||||
2021 |
2021 |
||||||||
$ | 1,915,201 | $ | 1,780,131 | ||||||
Pre-tax non-GAAP items: | |||||||||
Amortization related to intangible assets acquired through certain business combinations | 1,092 | 1,092 | |||||||
EDC related liability valuation increase | 4,256 | 1,986 | |||||||
Product rationalization | 5,774 | — | |||||||
Non-GAAP gross margin | $ | 1,926,323 | $ | 1,783,209 | |||||
46.2 | % | 46.3 | % | ||||||
Non-GAAP gross margin as a percentage of revenue | 46.5 | % | 46.3 | % | |||||
$ | 599,274 | $ | 584,823 | ||||||
Pre-tax non-GAAP items: | |||||||||
Amortization related to intangible assets acquired through certain business combinations | (12,357 | ) | (12,357 | ) | |||||
EDC related liability valuation increase | (12,784 | ) | (5,959 | ) | |||||
Product rationalization | (426 | ) | — | ||||||
Non-GAAP operating expenses | $ | 573,707 | $ | 566,507 | |||||
$ | 1,315,927 | $ | 1,195,308 | ||||||
Non-GAAP operating income | $ | 1,352,616 | $ | 1,216,702 | |||||
31.7 | % | 31.1 | % | ||||||
Non-GAAP operating income as a percent of revenue | 32.6 | % | 31.6 | % |
Lam Research Corporation Contact:
Source: Lam Research Corporation