01—Abstract
Summary
Summary of the 10-K filed August 23, 2010. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb 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.
02—Key points
Key Highlights
- Revenue 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.
- The 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.
- Gross 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.
- Research and development expenses remained substantial at $320.9 million, underscoring the company's commitment to innovation in a technology-driven industry.
- International sales are dominant, with Taiwan and Korea representing 33% and 25% of revenue respectively in fiscal year 2010.
- The company's backlog increased to $667 million from $391 million, signaling strong future demand.
- Cash and cash equivalents increased to $991.7 million, providing ample liquidity and financial flexibility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Lam Research Corp kept $0.16.
- Revenue$2.13B100.0%
- Cost of revenue−$1.16B54.5%
- Gross profit$969.9M45.5%
- Operating costs−$544.5M25.5%
- Operating income$425.4M19.9%
- Interest, other & tax−$78.7M3.7%
- Net income$346.7M16.2%
Where FY2010 revenue went
$2.13B- Cost of revenue: $1.16B, 55% of revenue
- Net income: $346.7M, 16% of revenue
- R&D: $320.9M, 15% of revenue
- SG&A: $240.9M, 11% of revenue
- Interest, other & tax: $78.7M, 3.7% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2010filed August 23, 2010Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $2.13B$1.12B | +91.2% |
| Cost of Revenue | $1.16B$727.21M | +60.0% |
| Gross Profit | $969.93M$388.73M | +149.5% |
| R&D Expenses | $320.86M$288.27M | +11.3% |
| SG&A Expenses | $240.94M$233.06M | +3.4% |
| Operating Expenses | $544.52M$669.98M | −18.7% |
| Operating Income | $425.41M-$281.24M | +251.3% |
| Interest Expense | $994K$6.50M | −84.7% |
| Net Income | $346.67M-$302.15M | +214.7% |
| EPS (Basic) | $0.27$-0.24 | +213.3% |
| EPS (Diluted) | $0.27$-0.24 | +212.4% |
| Shares Outstanding (Basic) | 1.27B1.26B | +1.1% |
| Shares Outstanding (Diluted) | 1.28B1.26B | +2.0% |
05—Questions
Frequently Asked Questions
What was Lam Research's financial performance in fiscal year 2010 compared to fiscal year 2009?
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.
Where does Lam Research generate most of its revenue geographically?
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.
How has the company's investment in research and development (R&D) changed?
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.
What is the company's outlook for the semiconductor equipment industry?
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.
06—Continue