01—Abstract
Summary
Summary of the 10-K filed August 15, 2023. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb 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.
02—Key points
Key Highlights
- Lam Research reported fiscal year 2023 revenue of $17.43 billion, a modest 1.2% increase year-over-year, primarily driven by customer support services, while systems revenue declined.
- The company experienced weakening customer demand in the second half of fiscal year 2023, largely due to spending reductions in the memory segment of the semiconductor market.
- U.S. government restrictions on sales of equipment, parts, and services to specific customers and technologies in China impacted overall equipment demand.
- A restructuring plan was initiated in fiscal year 2023, resulting in workforce reductions and approximately $107 million in charges, aimed at aligning costs with the current business outlook.
- Research and Development (R&D) expenses increased by 7.7% to $1.73 billion, underscoring the company's commitment to innovation and technological advancement.
- The company's international sales accounted for approximately 91% of total revenue in fiscal year 2023, highlighting its global operational footprint.
- Lam Research repurchased $2.02 billion of its common stock during fiscal year 2023, demonstrating a commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Lam Research Corp kept $0.26.
- Revenue$17.43B100.0%
- Cost of revenue−$9.65B55.4%
- Gross profit$7.78B44.6%
- Operating costs−$2.60B14.9%
- Operating income$5.17B29.7%
- Interest, other & tax−$663.9M3.8%
- Net income$4.51B25.9%
Where FY2023 revenue went
$17.43B- Cost of revenue: $9.65B, 55% of revenue
- Net income: $4.51B, 26% of revenue
- R&D: $1.73B, 9.9% of revenue
- SG&A: $832.8M, 4.8% of revenue
- Interest, other & tax: $663.9M, 3.8% of revenue
Kept 26% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed August 15, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $17.43B$17.23B | +1.2% |
| Cost of Revenue | $9.65B$9.36B | +3.2% |
| Gross Profit | $7.78B$7.87B | −1.2% |
| R&D Expenses | $1.73B$1.60B | +7.7% |
| SG&A Expenses | $832.75M$885.74M | −6.0% |
| Operating Expenses | $2.60B$2.49B | +4.5% |
| Operating Income | $5.17B$5.38B | −3.8% |
| Interest Expense | $186.46M$181.70M | +2.6% |
| Net Income | $4.51B$4.61B | −2.0% |
| EPS (Basic) | $3.33$3.29 | +1.2% |
| EPS (Diluted) | $3.32$3.27 | +1.4% |
| Shares Outstanding (Basic) | 1.35B1.40B | −3.2% |
| Shares Outstanding (Diluted) | 1.36B1.41B | −3.4% |
05—Questions
Frequently Asked Questions
What were the main drivers of Lam Research's revenue in fiscal year 2023?
Lam Research's revenue in fiscal year 2023 was primarily driven by its Customer Support Business Group (CSBG), which includes services, spares, and upgrades. While systems revenue saw a decrease due to weakening semiconductor demand, particularly in the memory market, the support segment provided a stable revenue stream.
How did geopolitical factors and government regulations impact Lam Research?
The U.S. government's restrictions on sales to China, including expanded export license requirements, significantly impacted the company's equipment demand and sales in that key region. These regulations are noted as a material factor affecting revenue and increasing exposure to international competition.
What actions did Lam Research take in response to the changing market conditions?
In response to weakening demand and an evolving economic environment, Lam Research initiated a restructuring plan in fiscal year 2023. This plan involved workforce reductions, costing approximately $107 million in charges, aimed at realigning the company's cost structure with its business outlook.
What is the company's outlook for future growth?
Lam Research believes that long-term growth will be driven by secular demand for semiconductors, coupled with significant technology inflections in the industry. These include advancements in 3D device scaling, multiple patterning, process flow improvements, and advanced packaging, which are expected to expand the served available market for their deposition, etch, and clean businesses.
06—Continue