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LRCX · LAM RESEARCH CORP

27 filings

10-K

LRCX 10-K Annual Reports

LAM RESEARCH CORP - 27 annual reports

Filing record · 2016–202610-K1110-Q328-K128

2026
LAM RESEARCH CORP Annual Report, Year Ended Jun 28, 2026
Lam Research Corporation reported a strong fiscal year 2026, with revenue increasing by 26.0% to $23.23 billion, driven by robust customer demand, particularly from the foundry segment. This growth was accompanied by an improved gross margin of 50.5%, up from 48.7% in the prior year, attributed to a favorable customer mix, though partially offset by tariff-related costs. The company continued its commitment to innovation with significant investments in research and development, which increased by 13.3% year-over-year, focusing on advanced semiconductor manufacturing processes essential for next-generation devices. Lam Research's financial health remains solid, with substantial cash reserves and strong operating cash flows, enabling continued returns to shareholders through dividends and significant share repurchases, including $3.85 billion in treasury stock purchases during fiscal year 2026. The company remains optimistic about long-term growth, driven by secular demand for semiconductors and technology inflections like 3D device scaling and AI advancements, despite acknowledging short-term volatility from trade restrictions and geopolitical factors.
Aug 7, 2026
2025
LAM RESEARCH CORP Annual Report, Year Ended Jun 29, 2025
Lam Research Corporation (LRCX) reported robust revenue growth of 23.7% in fiscal year 2025, reaching $18.4 billion, driven by strong demand across both memory and non-memory semiconductor markets. This growth was complemented by an improvement in gross margin to 48.7%, up from 47.3% in the prior year, attributed to enhanced factory efficiencies and a favorable product mix. The company also saw a significant increase in net income by 40.0% to $5.4 billion. Operationally, Lam Research continues to invest heavily in research and development, which increased by 10.2% to $2.1 billion, underscoring its commitment to innovation in deposition, etch, and clean technologies. The company's strong financial position is further evidenced by its substantial cash and cash equivalents of $6.4 billion and an active share repurchase program, with $7.5 billion remaining under authorization. The company is well-positioned to capitalize on secular demand for semiconductors and technology inflections like 3D device scaling and advanced packaging.
Aug 11, 2025
2024
LAM RESEARCH CORP Annual Report, Year Ended Jun 30, 2024
Lam Research Corporation (LRCX) reported its fiscal year 2024 results, showcasing resilience in a dynamic semiconductor industry. While overall revenue saw a decrease of 14.5% to $14.9 billion compared to the prior year, this was largely attributed to softer demand in the non-volatile memory market, partially offset by strength in DRAM and increased revenue from the China region. The company demonstrated improved profitability with a gross margin of 47.3%, up 270 basis points from fiscal year 2023, driven by a favorable customer mix and cost efficiencies. Lam Research continues to prioritize innovation and customer support, investing heavily in R&D, which increased by 10.1% to $1.9 billion. The company also maintained a strong financial position with cash and cash equivalents totaling $5.9 billion, and actively returned capital to shareholders through significant share repurchases and dividends. The company's strategic focus remains on addressing key technology inflections in the semiconductor industry, such as 3D device scaling and advanced packaging, positioning itself for long-term growth. Despite industry cyclicality and geopolitical risks, particularly concerning sales to China, Lam Research highlights its robust installed base and collaborative approach with customers as key differentiators. The company's commitment to operational efficiency and strategic resource allocation underscores its efforts to navigate market fluctuations and capitalize on future opportunities in the ever-evolving semiconductor landscape.
Aug 29, 2024
2023
LAM RESEARCH CORP Annual Report, Year Ended Jun 25, 2023
Lam Research Corporation's 2023 10-K filing reveals a company navigating a dynamic semiconductor market. While fiscal year 2023 revenue saw a slight increase of 1.2% to $17.43 billion, this was primarily driven by customer support services, as system sales experienced a decline due to weakening demand, particularly in the memory market. This slowdown was exacerbated by U.S. government restrictions impacting sales to China, a significant market for Lam Research. Despite these headwinds, the company maintained its strong focus on research and development, a key differentiator. Lam Research also implemented a restructuring plan in fiscal year 2023 to align its cost structure with the evolving business environment, incurring charges of approximately $107 million related to workforce reductions. Looking ahead, the company anticipates long-term growth driven by secular demand for semiconductors and technological advancements in areas like 3D device scaling and advanced packaging.
Aug 15, 2023
2022
LAM RESEARCH CORP Annual Report, Year Ended Jun 26, 2022
Lam Research Corporation reported strong revenue growth for fiscal year 2022, a 17.8% increase over fiscal year 2021, driven by robust demand for semiconductor manufacturing equipment across memory, foundry, and logic markets. Despite this top-line growth, the company experienced a slight decrease in gross margin percentage due to inflationary pressures on material, freight, and labor costs. Research and development expenses increased, reflecting continued investment in innovation. The company's financial position remains solid, with significant cash reserves and a consistent dividend payment history. Share repurchases were also a key focus, with substantial amounts returned to shareholders through buybacks and dividends.
Aug 24, 2022
2021
LAM RESEARCH CORP Annual Report, Year Ended Jun 27, 2021
Lam Research Corporation (LRCX) reported a strong fiscal year 2021, with revenue increasing by 45.6% to $14.63 billion, driven by robust demand for semiconductor equipment across various markets including high-performance computing, PCs, and 5G networks. The company demonstrated significant operational execution, increasing production output while adhering to COVID-19 safety protocols, though it did experience higher freight and logistics costs. Net income saw a substantial increase of 73.6% to $3.91 billion, leading to diluted earnings per share of $26.90. The company continues to invest heavily in research and development, focusing on innovations in deposition, etch, and clean technologies to address technological inflections like 3D device scaling and multiple patterning. Lam Research's strong global presence and collaborative approach with ecosystem partners position it well to capitalize on the long-term secular growth trend in the semiconductor industry, driven by demand from cloud computing, IoT, and other advanced markets. The company also actively manages its capital through share repurchases and dividends, indicating a commitment to shareholder returns.
Aug 17, 2021
2020
LAM RESEARCH CORP Annual Report, Year Ended Jun 28, 2020
Lam Research Corporation (LRCX) reported robust financial performance for the fiscal year ending June 28, 2020, with revenues reaching $10.04 billion, a 4.1% increase over the prior year. This growth was primarily driven by strong customer demand in the semiconductor industry, particularly for advanced wafer fabrication equipment. The company maintained a healthy gross margin of 45.9%, demonstrating its ability to manage costs effectively despite some COVID-19 related disruptions impacting factory and field utilization. Looking ahead, Lam Research is well-positioned to capitalize on secular demand trends in semiconductors, including the growing importance of 3D device scaling and advanced packaging. The company continues to invest heavily in research and development to maintain its technological leadership in deposition, etch, and clean processes. Key risks include the cyclical nature of the semiconductor industry, potential impacts from global economic conditions, supply chain disruptions, and geopolitical tensions, particularly concerning sales in China. However, the company's strong product portfolio, customer relationships, and strategic focus on innovation provide a solid foundation for future growth.
Aug 18, 2020
2019
LAM RESEARCH CORP Annual Report, Year Ended Jun 30, 2019
Lam Research Corporation (LRCX) reported its fiscal year 2019 results, showcasing resilience in a dynamic semiconductor capital equipment market. The company experienced a revenue decrease of 12.9% to $9.65 billion compared to fiscal year 2018, primarily due to lower customer demand. Despite this, Lam Research maintained a strong gross margin of 45.1%. The company continues to invest significantly in research and development, focusing on critical wafer fabrication technologies such as deposition, etch, and clean, which are essential for enabling next-generation semiconductor devices. Lam Research's strategic focus remains on increasing its relevance with key customers by providing innovative solutions that address the evolving challenges in semiconductor manufacturing, particularly with advancements like 3D architectures and multiple patterning. The company's robust balance sheet, with approximately $5.7 billion in cash, cash equivalents, and investments as of June 30, 2019, provides a solid foundation for continued investment and operational flexibility. Management is confident in the company's long-term positioning driven by technology inflections in the industry.
Aug 20, 2019
2018
LAM RESEARCH CORP Annual Report, Year Ended Jun 24, 2018
Lam Research Corporation's (LRCX) 2018 10-K filing highlights a robust fiscal year characterized by significant revenue growth, driven by increased customer investments in semiconductor technology and capacity. The company demonstrated strong performance with revenue reaching $11.08 billion, a 38% increase year-over-year, and net income soaring by 40% to $2.38 billion. This growth is attributed to the company's strategic position in key technology inflections within the semiconductor industry, such as 3D device scaling and advanced packaging. Lam Research's operational efficiency also improved, with gross margin as a percentage of revenue increasing to 46.6%. The company continued its commitment to innovation and customer support, as evidenced by a substantial increase in R&D spending. Furthermore, Lam Research actively returned capital to shareholders through a significant share repurchase program and an increasing quarterly dividend, underscoring its financial strength and confidence in future prospects.
Aug 14, 2018
2017
LAM RESEARCH CORP Annual Report, Year Ended Jun 25, 2017
Lam Research Corporation's 2017 10-K report showcases a significant year of growth and operational strength, driven by robust demand in the semiconductor industry. Revenue surged by 36% to $8.01 billion, indicating strong customer investment in wafer fabrication equipment. This increase was bolstered by technological advancements and capacity expansions, particularly from memory, foundry, and integrated device manufacturers. The company's strategic focus on deposition, etch, and single-wafer clean technologies positions it to capitalize on industry inflections like 3D architectures and multi-patterning. The company demonstrated improved profitability, with gross margin increasing to 45.0% due to higher volumes and better factory utilization. Operating expenses grew modestly, reflecting continued investment in R&D to maintain a competitive edge. Lam Research also actively managed its capital structure, evidenced by significant share repurchases and debt management activities. The company's strong financial position, supported by substantial cash reserves and operating cash flow, allows for continued investment in innovation and shareholder returns.
Aug 15, 2017
2016
LAM RESEARCH CORP Annual Report, Year Ended Jun 26, 2016
Lam Research Corporation's 2016 10-K filing details a strong year of growth, with revenues increasing by 11.9% to $5.89 billion, driven by increased customer investment in technology and capacity, particularly from memory customers. The company is strategically positioned to benefit from industry technology inflections like 3D NAND and FinFET, which are expanding its addressable market. Lam Research also announced a significant proposed acquisition of KLA-Tencor, aimed at strengthening its market position, though details on financing and integration risks are highlighted. The company's robust R&D investment of $913.7 million underscores its commitment to innovation and maintaining a competitive edge in the dynamic semiconductor equipment industry. Fiscal year 2016 demonstrated solid financial performance with a significant increase in net income and improved gross margins.
Aug 17, 2016
2015
LAM RESEARCH CORP Annual Report, Year Ended Jun 28, 2015
Lam Research's fiscal 2015 (ended June 28, 2015) was a strong year on the top line and in profitability, with revenue rising 14% to $5.26 billion from $4.61 billion and GAAP diluted EPS climbing 2% to $3.70 (net income of $655.6 million). Growth was driven by customer technology inflections (FinFET, 3D NAND, multiple patterning, advanced packaging) and share gains in deposition and etch. Gross margin was essentially flat at 43.4% versus 43.6% a year earlier, as less favorable product mix offset better factory utilization. Operating income rose 16% to $788 million, but was held back by an $79.4 million goodwill impairment on the single-wafer clean unit and $9.8 million of intangible impairment. Net income growth was modest relative to operating income growth because of higher interest expense after the March 2015 issuance of $1 billion in senior notes. The balance sheet grew more levered but remains liquid. Cash, short-term investments and restricted cash totaled roughly $4.2 billion, though about $2.2 billion of that sits offshore and would face U.S. tax if repatriated. Total debt principal is about $3.6 billion, and roughly $1.6 billion of convertible notes (2016 and 2018 notes) became current because their conversion options are currently exercisable, which pushes current liabilities up sharply. Management returned capital through $573 million of buybacks and $116 million of dividends, and it raised the quarterly dividend from $0.18 to $0.30 per share starting in fiscal 2016. Cash from operations was $786 million, which covered capex of $198 million with room to spare. Risk factors centre on customer concentration and cyclicality. Three customers (Micron, Samsung and TSMC) accounted for 51% of fiscal 2015 revenue, non-U.S. sales were about 83%, and the company faces China-related trade and political exposure. Backlog was $880 million, up modestly from $866 million. Investors should weigh the strong earnings momentum and capital returns against this concentration, the higher leverage and the potential for dilution from the convertible notes.
Aug 13, 2015
2014
LAM RESEARCH CORP Annual Report, Year Ended Jun 29, 2014
Lam Research's fiscal 2014 10-K (year ended June 29, 2014) shows a strong year of growth and profitability. Revenue rose 28% to $4.61 billion from $3.60 billion, driven by technology inflections in FinFET, 3D NAND, and multiple patterning, along with market share gains. Gross margin expanded to 43.6% from 39.0%, largely because Novellus acquisition-related inventory adjustments fell by about $78 million. Operating income rose to $677.7 million from $118.1 million, and diluted EPS reached $3.62 versus $0.66. Memory customers were a larger share of shipments (60%, up from 36%), and backlog grew to about $866 million from $764 million. Cash generation and capital returns were also prominent. Operating cash flow was $717 million, and cash, short-term investments, and restricted cash totaled about $3.2 billion at year-end. The company repurchased $245 million of stock, authorized a new $850 million buyback, and initiated a quarterly dividend of $0.18 per share. A $83 million pre-tax gain on the sale of Palo Alto real estate also boosted results, and the company sold Peter Wolters after year-end. Investors should weigh several risks. Debt is significant, with about $1.6 billion in convertible notes and a 2041 note that is convertible and classified as current, which creates dilution and refinancing considerations. Customer concentration is high, with three customers each above 10% of revenue, and the semiconductor equipment industry is cyclical. Gross unrecognized tax benefits total $352 million, and about $2.2 billion of cash is held offshore, with repatriation carrying potential U.S. tax costs.
Aug 26, 2014
2013
LAM RESEARCH CORP Annual Report, Year Ended Jun 30, 2013
Lam Research Corporation's fiscal year 2013 10-K filing reveals a company in a recovery phase, with revenues rebounding after a dip in the previous year, largely driven by the full-year inclusion of the Novellus Systems acquisition. The company's core business remains strong in providing essential wafer fabrication equipment for the semiconductor industry, with a particular emphasis on plasma etch and thin film deposition technologies. Despite a slight decrease in gross margin percentage due to acquisition-related adjustments and amortization, the overall financial picture shows top-line growth and continued investment in research and development to stay ahead in a rapidly evolving technological landscape. Investors should note the significant international revenue concentration, with Asia, particularly Taiwan and Korea, being key markets. The company also highlights its reliance on a few major customers, which presents both an opportunity for strong partnerships and a potential risk factor. Management is focused on navigating the cyclical nature of the semiconductor industry, managing expenses, and continuing to innovate to meet customer demands for smaller, faster, and more efficient integrated circuits.
Aug 27, 2013
2012
LAM RESEARCH CORP Annual Report, Year Ended Jun 24, 2012
Lam Research Corporation's 2012 10-K filing reveals a company in transition, marked by the significant acquisition of Novellus Systems, Inc. This strategic move aimed to broaden Lam's product portfolio and market reach within the critical semiconductor equipment industry. Despite a challenging market environment in fiscal year 2012, characterized by decreased customer capacity investments due to macroeconomic headwinds, Lam Research maintained a strong focus on innovation, evidenced by continued substantial investments in Research and Development. The company navigated a revenue decline year-over-year but managed its operations effectively, with a focus on maintaining customer relationships and technological leadership.
Aug 22, 2012
2011
LAM RESEARCH CORP Annual Report, Year Ended Jun 26, 2011
Lam Research Corporation's (LRCX) 2011 10-K filing reveals a company experiencing a significant rebound in revenue and profitability, a substantial increase from the challenging fiscal year 2009. The company's core business in designing, manufacturing, and servicing semiconductor processing equipment, particularly in etch and single-wafer clean technologies, saw a robust 51.7% revenue increase to $3.24 billion in fiscal year 2011 compared to fiscal year 2010. This growth was driven by an improving global economy and the semiconductor industry's adoption of next-generation technologies. The company's gross margin also improved to 46.2% in FY11, up from 45.5% in FY10 and a significantly lower 34.8% in FY09, indicating improved operational efficiency and absorption. Financially, Lam Research bolstered its liquidity, ending fiscal year 2011 with $2.3 billion in cash, cash equivalents, and short-term investments. This was partly due to a successful $900 million convertible note offering. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. However, investors should note the cyclical nature of the semiconductor equipment industry, with potential for significant quarterly fluctuations. The company's substantial international revenue, particularly from Asia, also exposes it to foreign currency exchange rate risks.
Aug 19, 2011
2010
LAM RESEARCH CORP Annual Report, Year Ended Jun 27, 2010
Lam Research Corporation's 2010 10-K filing details a significant recovery in the fiscal year ended June 27, 2010, following a challenging 2009 impacted by the global economic downturn. The company reported a substantial increase in revenue, up 91.2% to $2.13 billion, and returned to profitability with a net income of $346.7 million, a significant turnaround from the $302.1 million net loss in the prior year. This recovery was driven by improved demand in the semiconductor industry and increased capital expenditures by customers. Lam Research's core business remains focused on providing wafer fabrication equipment and services, with a strong market position in plasma etch and single-wafer wet clean technologies. The company continued to invest heavily in research and development, allocating $320.9 million to innovation to maintain its competitive edge in a rapidly evolving industry. Key markets are concentrated in Asia, particularly Taiwan and Korea, which represent over half of the company's revenue.
Aug 23, 2010
2009
LAM RESEARCH CORP Annual Report, Year Ended Jun 28, 2009
Lam Research Corporation (LRCX) reported a challenging fiscal year 2009, marked by a significant downturn in the semiconductor industry and global economic conditions. Total revenue decreased by 55% year-over-year to $1.116 billion, reflecting reduced customer demand. The company experienced a net loss of $302.1 million, a stark contrast to the prior year's profit, primarily due to the industry-wide slowdown, a $96.3 million goodwill impairment charge related to its Clean Product Group, and substantial restructuring costs. Despite the downturn, Lam Research continued to invest in research and development, focusing on its core etch technology and expanding into single-wafer clean markets. The company is positioning itself for a future upturn, anticipating opportunities in equipment refurbishment and upgrades. The financial results highlight the cyclical nature of the semiconductor equipment industry and the company's vulnerability to macroeconomic factors and customer spending fluctuations. Lam Research ended the fiscal year with a solid cash position of $757.8 million, providing some liquidity buffer during this period.
Aug 27, 2009
2008
LAM RESEARCH CORP Annual Report, Year Ended Jun 29, 2008
Lam Research's fiscal 2008 (ended June 29, 2008) was a year of strong profitability but clearly weakening demand. Revenue fell 4% to $2.47 billion from $2.57 billion, and gross margin compressed to 47.4% from 50.8%, driven by lower factory utilization, customer concentration, and product mix. Operating margin dropped to 20.6% from 30.3%, and net income declined about 36% to $439.3 million, or $3.47 per diluted share. Management flagged reduced customer spending in the latter part of the year, and backlog fell to roughly $410 million from $643 million, a signal that near-term revenue pressure is likely to continue. The year's major strategic event was the March 2008 acquisition of SEZ Holding AG, a single-wafer wet clean company, for about $482.6 million net of cash acquired. The deal expands Lam beyond etch into the adjacent clean market and added roughly $221.6 million of non-tax-deductible goodwill. It also brought integration costs, including a $19.0 million restructuring charge that the company expects to save about $25 million annually. Shareholders should note that the 409A tax liability on misdated stock options, roughly $50.2 million, is now a company obligation, and that the stock option review produced restatements of $95.2 million in additional non-cash compensation. Balance sheet and cash generation remain solid. Operating cash flow was $590.3 million, cash and short-term investments totaled about $1.2 billion, and the company repurchased only $14.6 million of stock after $1.1 billion in fiscal 2007. Debt rose to about $306 million after a $250 million term loan replaced the prior $250 million LRI facility. Investors should weigh strong liquidity and a dominant etch franchise against cyclical exposure, customer concentration (Samsung 19%, Toshiba 13%), and the company's recent loss of timely SEC filing status, which constrains its ability to use Form S-3.
Aug 28, 2008
2007
LAM RESEARCH CORP Annual Report, Year Ended Jun 24, 2007
Lam Research's fiscal 2007 Form 10-K (filed March 31, 2008) is dominated by a restatement of historical stock option accounting, not by the operating story. The company's operating performance was very strong: revenue rose 56% to $2.57 billion, gross margin held above 50% for a third consecutive year at 50.8%, and operating margin expanded to 30.3% from 24.6%. Net income reached $685.8 million, or $4.85 per diluted share, and operating cash flow more than doubled to $823.6 million. Customer concentration was notable, with Hynix and Samsung each representing about 14% of revenue, and roughly 84% of revenue came from outside the United States. The central investor concern is the stock option review. An independent committee examined grants from fiscal 1997 to 2005 and concluded that measurement dates for many grants differed from recorded grant dates. The company recorded $96.4 million in pre-tax incremental stock-based compensation and payroll tax expense ($65.8 million after tax), and it will also make employees whole for an estimated $50 to $55 million in potential Section 409A tax liabilities. Management and the committee found no intentional misconduct. The filing also discloses a NASDAQ listing non-compliance issue arising from the late filings, shareholder demand letters, and loss of Form S-3 eligibility for one year, all of which add legal, financial, and governance risk. Balance sheet and capital allocation changed meaningfully during the year. The company repurchased $1.08 billion of stock, completing all authorizations, and its cash and short-term investments declined. It then took on a $250 million term loan in March 2008 and agreed to acquire roughly 94% of SEZ Holding AG for about $584 million, which was completed in March 2008. Operating leases of roughly $165 million were also entered into for Fremont and Livermore facilities. Taken together, these items mean that future results will reflect the integration of SEZ, higher interest and lease obligations, and the outcome of the remaining governance and legal matters.
Mar 31, 2008
2006
LAM RESEARCH CORP Annual Report, Year Ended Jun 25, 2006
Lam Research (LRCX) closed fiscal 2006 (ended June 25, 2006) with a strong year: revenue rose 9% to $1.642 billion, gross margin held above 50% for a second straight year at 50.4%, and net income reached $335.8 million, or $2.34 diluted EPS, up from $2.10. Operating income grew about 4% to $406.3 million, though operating expenses rose 13%, driven mainly by R&D (up 18% to $228.9 million, or 13.9% of revenue), SG&A, and the first full year of expensing equity-based compensation under SFAS 123R ($22.8 million). Order momentum was the most forward-looking positive: new orders rose 31% year over year and backlog climbed to roughly $521 million from $351 million, and management guided September-quarter revenue to $580–600 million with gross margin near 51.5%. The balance sheet changed meaningfully. Cash, short-term investments and restricted cash reached about $1.5 billion, helped by a $350 million five-year credit facility that funded a $500 million repatriation of foreign earnings under the American Jobs Creation Act. That repatriation cost a $24.2 million tax provision, and the effective tax rate was 23.9% (18.4% excluding the discrete item). The company also repurchased about $251 million of stock during the year and has $331.7 million left under its authorizations. Accounts receivable rose sharply to $407 million, and working capital ran about $1.14 billion. Key risks remain typical for capital equipment: revenue depends on a small number of high-priced systems and on a few large customers (Samsung about 15% and Toshiba about 12% of revenue), roughly 86% of sales are outside the U.S., and the business is cyclical and concentrated in etch, with competition from Tokyo Electron and Applied Materials. Management also disclosed a $75 million residual value guarantee on Fremont facility leases due in fiscal 2008. The company said its internal control over financial reporting was effective, and a $15.8 million California court judgment in its favor is expected to be recorded in the September 2006 quarter.
Aug 17, 2006
2005
LAM RESEARCH CORP Annual Report, Year Ended Jun 26, 2005
Lam Research (LRCX) reported a blockbuster fiscal 2005 (year ended June 26, 2005), with total revenue rising 61% to $1.50 billion from $935.9 million and net income more than tripling to $299.3 million, or $2.10 per diluted share, versus $83.0 million in fiscal 2004. Gross margin expanded roughly five percentage points to 50.9%, driven by higher volume, improved product mix, and effective asset management. Management attributes the growth to a strong market upturn in semiconductor capital spending and to share gains in both dielectric and conductor etch, with particularly strong performance in Asia, where Asia Pacific and Korea together accounted for a large share of sales. Operating income reached $391.0 million, and the tax rate was about 25%, aided by R&D credits and lower-taxed foreign income. The balance sheet and cash generation are strong. Cash, cash equivalents, short-term investments and restricted cash totaled $894.3 million, up from $541.9 million, and operating cash flow was $425.9 million. The company repurchased 5.9 million shares for $167.1 million under a $250 million authorization, leaving $82.9 million available through September 2007. The valuation allowance on deferred tax assets rose to $106.0 million, and the company retired its 4% convertible notes in June 2004. Forward-looking indicators are more cautious. New orders in the March and June 2005 quarters declined and stabilized after peaking in the September 2004 quarter, and management guided September 2005 quarter new orders to be flat to down 5% and revenue to $310 million to $330 million. Gross margin is expected near 47%, and quarterly operating expenses near $100 million, both including stock-based compensation expense from SFAS 123(R) that begins in the coming quarter. Backlog fell to $351 million from $403 million, and customer concentration remains meaningful, with Samsung at about 13% of revenue. Investors should weigh the strong FY2005 results against a demand plateau and a clear step-down in expected near-term revenue.
Aug 18, 2005
2004
LAM RESEARCH CORP Annual Report, Year Ended Jun 27, 2004
Lam Research's fiscal 2004 (ended June 27, 2004) was a sharp recovery year. Revenue rose 23.9% to $935.9 million from $755.2 million, and gross margin expanded to 46.1% of revenue from 40.2%, driven by higher volumes, better factory and field utilization, and expense management. Operating income swung to $106.2 million from a $5.4 million loss, and net income reached $83.0 million, or $0.59 per diluted share, versus a $7.7 million loss the prior year. Management attributed the improvement to a recovering semiconductor capital equipment market, with Asia Pacific rising to 52% of revenue, and to gains in market share it believes it is capturing. The balance sheet was strengthened by repaying the $300 million 4% convertible notes two years early in June 2004, at a cash outlay of $303.0 million including a $3.0 million premium. Stockholders' equity rose to $812.5 million from $649.1 million, and long-term debt fell to $9.6 million from $332.2 million. Cash, short-term investments and restricted cash totaled $541.9 million at year-end. Operating cash flow was a solid $157.1 million, though accounts receivable grew $138.4 million, reflecting higher sales volumes. Investors should weigh several risks. The company remains highly cyclical and dependent on a few large customers; ST Microelectronics accounted for about 15% of revenue in fiscal 2004. Management guided September 2004 quarter revenue to $400-415 million and gross margin near 50%. The company also ceased CMP (chemical mechanical polishing) development, taking a $2.4 million asset impairment charge, and still carries $13.9 million in restructuring reserves plus a $98.7 million residual value guarantee on Fremont facility leases. Sarbanes-Oxley Section 404 compliance begins with fiscal 2005.
Sep 10, 2004
2003
LAM RESEARCH CORP Annual Report, Year Ended Jun 29, 2003
Lam Research's fiscal 2003 (year ended June 29, 2003) was a difficult year marked by a steep revenue decline. Total revenue fell 19.9% to $755.2 million from $943.1 million, and the company posted a net loss of $7.7 million, or $0.06 per share, compared with a $90.1 million loss in fiscal 2002. The semiconductor capital equipment downturn continued, with customers remaining cautious on capital spending, though demand was roughly flat through the year. Management's outlook for the September 2003 quarter called for revenue at roughly June-quarter levels and essentially flat gross margin percentage. Profitability improved meaningfully on a cost basis. Gross margin rose to 40.2% from 28.2%, helped by outsourcing of manufacturing, lower excess inventory charges, and the absence of the prior year's $38.8 million Varian patent settlement charge. Management said the breakeven point had fallen to roughly $180 million in quarterly revenue. Operating expenses also declined, with R&D down 10.4% and SG&A down 17.9%, though R&D rose to 21.3% of revenue. Restructuring charges were $15.9 million net for the year, and the company continued to cut headcount and vacate facilities. The balance sheet remains strong but shrinking. Cash, equivalents, short-term investments and restricted cash totaled $625.9 million, down from $945.2 million, largely because the company repaid its $309.8 million 5% convertible notes in September 2002. The remaining $300 million 4% convertible notes due 2006 are hedged with a $300 million interest rate swap. Operating cash flow was positive at $69.2 million. Investors should also note off-balance-sheet lease guarantees of up to $98.7 million tied to Fremont campus facilities, and about 47% export sales with Samsung accounting for roughly 15% of revenue.
Sep 25, 2003
2002
LAM RESEARCH CORP Annual Report, Year Ended Jun 30, 2002
Lam Research Corporation (LRCX) reported revenues of $943.1 million for fiscal year 2002, a significant decrease from $1,519.8 million in fiscal year 2001. This downturn is attributed to a global decline in demand for integrated circuits, leading to excess capacity in the semiconductor industry and a severe contraction in the semiconductor manufacturing equipment market. The company experienced a net loss of $90.1 million in fiscal year 2002, a reversal from the net income of $52.1 million in fiscal year 2001. This performance was impacted by substantial restructuring charges, an asset impairment charge, and a patent litigation settlement. Despite the challenging market conditions, Lam Research continued to invest in research and development, allocating 19% of its revenue to R&D to support customers' transition to smaller device feature sizes, new materials, and 300mm wafers. The company is focused on managing its cost structure and enhancing operational flexibility through outsourcing initiatives. Management expressed optimism for a modest recovery in the first fiscal quarter of 2003, with expectations for slightly higher revenues compared to the prior quarter.
Sep 12, 2002
1996
LAM RESEARCH CORP Annual Report, Year Ended Jun 30, 1996
Lam Research's fiscal 1996 (year ended June 30, 1996) was a record year on the top line but a sign of a turning market. Total revenue rose 58% to $1,276.9 million from $810.6 million, net income climbed 58% to $141.1 million, and fully diluted EPS was $4.67. Growth was driven by strong demand for its TCP etch systems, Rainbow etch systems and the Alliance cluster platform, along with a rapidly growing installed base that boosted spares and service revenue. Foreign sales rose to 64% of revenue, with Asia Pacific and Japan contributing heavily. Operating margin improved to 16.7% from 14.6%, though gross margin edged down to 48.1% due to a mix shift toward lower-margin TCP and Alliance products. The outlook is considerably more cautious. Management said the semiconductor market had entered a period of volatility in demand and pricing, with some customers rescheduling or canceling equipment purchases. The company stated that fiscal 1997 revenue could be lower than fiscal 1996, and it announced an August 1996 restructuring that cut about 11% of the workforce and carries a $11.0 to $12.0 million charge in the first quarter of fiscal 1997. Backlog stood at $328.0 million at June 30, 1996, up from $252.6 million a year earlier, which provides some near-term visibility. Management expects lower dollar operating expenses in fiscal 1997, though gross margins may come under pressure from overcapacity and slower industry conditions. The balance sheet strengthened over the year. Stockholders' equity reached $609.8 million, up from $395.3 million, largely because the $64.3 million convertible subordinated debentures were converted into common stock in May 1996. Long-term debt fell to $52.9 million. Operating cash flow was modest at $26.6 million because of heavy growth in receivables and inventories, which rose to $322.4 million. Management believes existing cash, short-term investments and its $210 million credit line will support operations through at least June 30, 1997. Key risks include the cyclical semiconductor market, competition from Applied Materials and Tokyo Electron, the pending Varian patent lawsuit, and reliance on Japanese licensing arrangements, with the TEL royalty rate set to drop substantially in January 1997.
Sep 23, 1996
1995
LAM RESEARCH CORP Annual Report, Year Ended Jun 30, 1995
Lam Research Corporation's fiscal 1995 (year ended June 30, 1995) was a breakout year. Total revenue rose 64% to $810.6 million from $493.7 million, and net income more than doubled to $89.2 million, or $3.27 per primary share. Operating margin expanded to 14.6% from 12.2%, driven by higher volumes of its Rainbow and TCP etch systems, first volume shipments of the Alliance cluster tool, and a 3.6-point improvement in gross margin to 48.3%. Results also include a $10.4 million pre-tax gain from the sale of Brooks Automation shares, which lifted fourth-quarter earnings. Etch systems still generated about 77% of revenue, so the company remains concentrated in one product family. The balance sheet strengthened considerably. Stockholders' equity nearly doubled to $395.3 million after a $115 million public offering in the first quarter, and cash, equivalents and short-term investments reached $101.0 million. Backlog grew to $252.6 million from $145.9 million, supporting expectations for continued growth. Investors should note that working capital absorbed heavy investment: operating cash flow was only $19.1 million, with receivables and inventories rising sharply, and capital expenditures were $63.4 million. Customer concentration is notable, with Intel accounting for 11% of revenue, and export sales (mostly to Asia) make up 38% of net sales. Key risks disclosed include a pending patent infringement lawsuit brought by Varian Associates, which management believes will not have a material adverse effect, plus exposure to semiconductor capital-spending cycles, yen-denominated sales and currency hedging, and the execution risk of new facilities in Korea and expanded Fremont operations. The company also has $66 million of 6% convertible subordinated debentures due 2003, which are convertible at $25 per share and are now deep in the money given the stock's trading range.
Sep 26, 1995