01—Abstract
Summary
Summary of the 10-K filed August 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Lam Research Corporation (LRCX) reported its fiscal year 2024 results, showcasing resilience in a dynamic semiconductor industry.
While overall revenue saw a decrease of 14.5% to $14.9 billiona compared to the prior year, this was largely attributed to softer demand in the non-volatile memory market, partially offset by strength in DRAM and increased revenue from the China region. The company demonstrated improved profitability with a gross margin of 47.3%, up 270 basis points from fiscal year 2023, driven by a favorable customer mix and cost efficiencies. Lam Research continues to prioritize innovation and customer support, investing heavily in R&D, which increased by 10.1% to $1.9 billion.
The company also maintained a strong financial position with cash and cash equivalents totaling $5.9 billionb, and actively returned capital to shareholders through significant share repurchases and dividends. The company's strategic focus remains on addressing key technology inflections in the semiconductor industry, such as 3D device scaling and advanced packaging, positioning itself for long-term growth.
Despite industry cyclicality and geopolitical risks, particularly concerning sales to China, Lam Research highlights its robust installed base and collaborative approach with customers as key differentiators. The company's commitment to operational efficiency and strategic resource allocation underscores its efforts to navigate market fluctuations and capitalize on future opportunities in the ever-evolving semiconductor landscape.
02—Key points
Key Highlights
- Revenue for fiscal year 2024 decreased by 14.5% to $14.9 billion, primarily due to weakness in the non-volatile memory market, partially offset by strength in DRAM and increased revenue from customers in China.
- Gross margin improved significantly to 47.3% of revenue, a 270 basis point increase from fiscal year 2023, attributed to a favorable customer mix and lower material costs.
- Research and Development (R&D) spending increased by 10.1% to $1.9 billion, reflecting the company's commitment to innovation and addressing technology inflections in the semiconductor industry.
- The company ended fiscal year 2024 with a strong liquidity position, reporting $5.9 billion in cash and cash equivalents.
- Lam Research actively returned capital to shareholders, repurchasing $2.8 billion in common stock and paying $1.0 billion in dividends during fiscal year 2024.
- China represented the largest geographic region for revenue, accounting for 42% of total revenue in fiscal year 2024.
- The company is focused on addressing industry trends like 3D device scaling, multiple patterning, and advanced packaging.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Lam Research Corp kept $0.26.
- Revenue$14.91B100.0%
- Cost of revenue−$7.85B52.7%
- Gross profit$7.05B47.3%
- Operating costs−$2.79B18.7%
- Operating income$4.26B28.6%
- Interest, other & tax−$436.1M2.9%
- Net income$3.83B25.7%
Where FY2024 revenue went
$14.91B- Cost of revenue: $7.85B, 53% of revenue
- Net income: $3.83B, 26% of revenue
- R&D: $1.90B, 13% of revenue
- SG&A: $868.2M, 5.8% of revenue
- Interest, other & tax: $436.1M, 2.9% of revenue
Kept 26% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 29, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $14.91B$17.43B | −14.5% |
| Cost of Revenue | $7.85B$9.65B | −18.6% |
| Gross Profit | $7.05B$7.78B | −9.3% |
| R&D Expenses | $1.90B$1.73B | +10.1% |
| SG&A Expenses | $868.25M$832.75M | +4.3% |
| Operating Expenses | $2.79B$2.60B | +7.2% |
| Operating Income | $4.26B$5.17B | −17.6% |
| Interest Expense | $183.03M$186.46M | −1.8% |
| Net Income | $3.83B$4.51B | −15.1% |
| EPS (Basic) | $2.91$3.33 | −12.6% |
| EPS (Diluted) | $2.90$3.32 | −12.7% |
| Shares Outstanding (Basic) | 1.31B1.35B | −3.0% |
| Shares Outstanding (Diluted) | 1.32B1.36B | −2.8% |
05—Questions
Frequently Asked Questions
What was Lam Research's revenue performance in fiscal year 2024?
Lam Research's revenue for fiscal year 2024 was $14.9 billion, a decrease of 14.5% compared to fiscal year 2023. This decline was primarily driven by weaker demand in the non-volatile memory market, though this was partially offset by strength in the DRAM market and increased revenue from customers in China.
How did Lam Research manage its profitability in fiscal year 2024?
Lam Research demonstrated improved profitability, with its gross margin increasing to 47.3% of revenue, up 270 basis points from the prior year. This improvement was attributed to a more favorable customer mix, reduced material costs, and higher field resource utilization.
What is Lam Research's strategy for future growth?
Lam Research's strategy focuses on addressing key technology inflections in the semiconductor industry, such as 3D device scaling, multiple patterning, and advanced packaging. The company plans to continue significant investments in research and development to support these initiatives and maintain its competitive position.
What is Lam Research's exposure to the Chinese market, and what are the associated risks?
China is a significant market for Lam Research, representing 42% of its revenue in fiscal year 2024. However, the company's sales to China are subject to risks related to U.S. export control regulations and evolving trade policies between the U.S. and China, which could materially affect its operations and financial results.
06—Continue