01—Abstract
Summary
Summary of the 10-K filed August 22, 2012. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- The acquisition of Novellus Systems, Inc. on June 4, 2012, significantly expanded Lam Research's product offerings into thin-film deposition and surface preparation, aiming for revenue and cost synergies.
- Revenue decreased by 17.7% to $2.67 billion in fiscal year 2012 compared to $3.24 billion in fiscal year 2011, reflecting a slowdown in the semiconductor capital equipment market.
- Research and Development expenses increased by 19.1% to $444.6 million in fiscal year 2012, underscoring the company's commitment to innovation and new product development.
- The company repurchased a significant amount of its common stock, with $575 million invested in accelerated share repurchase programs during fiscal year 2012, reflecting a commitment to shareholder returns.
- Backlog orders increased to $870 million as of June 24, 2012, from $641 million at the end of the prior fiscal year, indicating a positive outlook for future shipments.
- Geographically, Korea and Taiwan remained significant revenue contributors, while North America showed strong growth, highlighting the global nature of the semiconductor industry.
- The company maintained a strong balance sheet with $3.0 billion in cash, cash equivalents, and short-term investments as of June 24, 2012, providing liquidity for operations and strategic initiatives.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Lam Research Corp kept $0.06.
- Revenue$2.67B100.0%
- Cost of revenue−$1.58B59.3%
- Gross profit$1.08B40.7%
- Operating costs−$846.3M31.8%
- Operating income$237.7M8.9%
- Interest, other & tax−$69.0M2.6%
- Net income$168.7M6.3%
Where FY2012 revenue went
$2.67B- Cost of revenue: $1.58B, 59% of revenue
- R&D: $444.6M, 17% of revenue
- SG&A: $401.8M, 15% of revenue
- Net income: $168.7M, 6.3% of revenue
- Interest, other & tax: $69.0M, 2.6% of revenue
Kept 6.3% as net incomeNet income $168.7M · 6.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed August 22, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $2.67B$3.24B | −17.7% |
| Cost of Revenue | $1.58B$1.74B | −9.2% |
| Gross Profit | $1.08B$1.50B | −27.6% |
| R&D Expenses | $444.56M$373.29M | +19.1% |
| SG&A Expenses | $401.78M$308.07M | +30.4% |
| Operating Expenses | $846.34M$692.95M | +22.1% |
| Operating Income | $237.73M$804.28M | −70.4% |
| Interest Expense | $38.96M$5.38M | +624.2% |
| Net Income | $168.72M$723.75M | −76.7% |
| EPS (Basic) | $0.14$0.59 | −76.8% |
| EPS (Diluted) | $0.14$0.58 | −76.7% |
| Shares Outstanding (Basic) | 1.24B1.24B | +0.5% |
| Shares Outstanding (Diluted) | 1.25B1.25B | +0.2% |
05—Questions
Frequently Asked Questions
What was the most significant event impacting Lam Research in fiscal year 2012?
The most significant event was the acquisition of Novellus Systems, Inc. on June 4, 2012. This acquisition aimed to enhance Lam Research's product portfolio and market position within the semiconductor equipment industry.
How did the company's revenue perform in fiscal year 2012 compared to fiscal year 2011?
Revenue decreased by approximately 17.7% in fiscal year 2012, falling to $2.67 billion from $3.24 billion in fiscal year 2011. This decline was attributed to a general slowdown in customer capacity investments within the semiconductor industry due to prevailing macroeconomic conditions.
What is the company's outlook on Research and Development investments?
Lam Research continued to prioritize R&D, increasing its investment by 19.1% to $444.6 million in fiscal year 2012. This reflects a strategic commitment to developing leading-edge technologies and maintaining a competitive advantage in the rapidly evolving semiconductor equipment market.
How is Lam Research addressing shareholder returns and capital allocation?
The company demonstrated a commitment to shareholder returns through significant share repurchases, including substantial investments in accelerated share repurchase programs during fiscal year 2012. The company also maintained a strong liquidity position with $3.0 billion in cash, cash equivalents, and short-term investments, providing flexibility for strategic initiatives and potential future returns.
06—Continue