10-KPeriod: FY2010

LAM RESEARCH CORP Annual Report, Year Ended Jun 27, 2010

Filed August 23, 2010For Securities:LRCX

Summary

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.

Financial Highlights

51 data points
Beta

Revenue

$2.13B

45.5% Gross Margin

Net Income

$346.67M

16.2% Net Margin

EPS (Diluted)

$0.27

Total Assets

$2.49B

Cash & Equivalents

$545.77M

Free Cash Flow

$350.71M

Financial Statements
Beta
Revenue$2.13B
Cost of Revenue$1.16B
Gross Profit$969.93M
R&D Expenses$320.86M
SG&A Expenses$240.94M
Operating Expenses$544.52M
Operating Income$425.41M
Interest Expense$994K
Net Income$346.67M
EPS (Basic)$0.27
EPS (Diluted)$0.27
Shares Outstanding (Basic)1.27B
Shares Outstanding (Diluted)1.28B

Key Highlights

  • 1Revenue surged by 91.2% year-over-year to $2.13 billion in fiscal year 2010, indicating a strong recovery from the previous year's downturn.
  • 2The company returned to profitability, reporting a net income of $346.7 million, a significant improvement from a net loss of $302.1 million in fiscal year 2009.
  • 3Gross margin improved significantly to 45.5% of revenue from 34.8% in the prior year, driven by increased revenue, factory utilization, and a favorable product mix.
  • 4Research and development expenses remained substantial at $320.9 million, underscoring the company's commitment to innovation in a technology-driven industry.
  • 5International sales are dominant, with Taiwan and Korea representing 33% and 25% of revenue respectively in fiscal year 2010.
  • 6The company's backlog increased to $667 million from $391 million, signaling strong future demand.
  • 7Cash and cash equivalents increased to $991.7 million, providing ample liquidity and financial flexibility.

Frequently Asked Questions

Lam Research experienced a significant turnaround in fiscal year 2010. Revenue increased by 91.2% to $2.13 billion from $1.12 billion in fiscal year 2009. The company also returned to profitability, reporting a net income of $346.7 million, a substantial improvement from a net loss of $302.1 million in the prior year. This recovery was driven by an increase in customer demand and capital expenditures within the semiconductor industry.

The company's revenue is heavily concentrated in Asia. In fiscal year 2010, Taiwan accounted for 33% of total revenue, followed by Korea at 25%, and Japan at 15%. These three regions alone represented approximately 73% of the company's total revenue.

Lam Research maintained a strong commitment to R&D, investing $320.9 million in fiscal year 2010, an increase from $288.3 million in fiscal year 2009. This investment is crucial for developing new products and enhancements to maintain its competitive advantage in the rapidly evolving semiconductor equipment market.

The company anticipates a substantial increase in the total market for wafer fabrication equipment in calendar year 2010 compared to 2009. Management expects year-on-year growth in customer shipments due to overall market expansion and anticipated gains in market share. However, they acknowledge the cyclical nature of the industry and the uncertainty surrounding the pace and robustness of any macroeconomic recovery.