Summary
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.
Financial Highlights
31 data points| Revenue | $1.12B |
| Cost of Revenue | $727.21M |
| Gross Profit | $388.73M |
| R&D Expenses | $288.27M |
| SG&A Expenses | $233.06M |
| Operating Expenses | $669.98M |
| Operating Income | -$281.24M |
| Interest Expense | $6.50M |
| Net Income | -$302.15M |
| EPS (Basic) | $-0.24 |
| EPS (Diluted) | $-0.24 |
| Shares Outstanding (Basic) | 1.26B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Revenue declined significantly by 55% to $1.116 billion in fiscal year 2009 compared to $2.475 billion in fiscal year 2008, driven by a severe downturn in the semiconductor industry and global economic conditions.
- 2The company reported a net loss of $302.1 million for fiscal year 2009, a substantial decrease from a net income of $439.3 million in fiscal year 2008.
- 3A goodwill impairment charge of $96.3 million was recorded in fiscal year 2009, impacting the Clean Product Group due to a decline in fair value below its carrying value.
- 4Restructuring and asset impairment charges totaled $65.5 million in fiscal year 2009, reflecting efforts to align costs with the challenging economic environment.
- 5Despite the downturn, R&D expenses remained significant at $288.3 million, representing 25.8% of revenue, as the company continued to invest in technology development, particularly in etch and single-wafer clean.
- 6The company ended the fiscal year with a cash, cash equivalents, short-term investments, and restricted cash and investments balance of $757.8 million, indicating a focus on maintaining liquidity.
- 7International sales constituted a significant portion of revenue, approximately 85% in fiscal year 2009, highlighting the global nature of the semiconductor industry.