Summary
Lam Research Corporation (LRCX) reported a significant recovery in its financial performance for the quarter ending December 27, 2009, compared to the previous periods. Revenue increased by 53% sequentially to $487.2 million, driven by a rebound in demand for wafer fabrication equipment, supported by improving global economic conditions and a recovery in the semiconductor industry. This strong top-line growth translated into a substantial increase in profitability, with net income rising to $69.6 million, or $0.54 per diluted share, a significant improvement from the loss reported in the same quarter of the prior year. The company's gross margin also saw a healthy expansion, reaching 45.8% from 42.9% in the prior quarter, attributed to higher revenues, a better product mix, and improved factory absorption. While operating expenses increased due to the restoration of employee salaries and variable compensation, the overall profitability surged, reflecting a successful return to growth for Lam Research after a challenging period. The company ended the quarter with a strong cash position of approximately $831 million, indicating robust liquidity.
Financial Highlights
27 data points| Revenue | $487.18M |
| Cost of Revenue | $265.99M |
| Gross Profit | $221.19M |
| R&D Expenses | $82.17M |
| SG&A Expenses | $60.11M |
| Operating Expenses | $129.84M |
| Operating Income | $91.35M |
| Net Income | $69.57M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 1.27B |
| Shares Outstanding (Diluted) | 1.29B |
Key Highlights
- 1Revenue surged by 53% sequentially to $487.2 million for the quarter ended December 27, 2009, signaling a strong recovery.
- 2Net income rebounded to $69.6 million ($0.54 per diluted share) from a loss in the prior year period, indicating improved profitability.
- 3Gross margin improved to 45.8% from 42.9% sequentially, driven by higher revenue, favorable product mix, and factory absorption.
- 4The company experienced a significant increase in operating income to $91.3 million from a loss in the prior year.
- 5Cash and investments totaled $830.6 million, demonstrating a strong liquidity position.
- 6Shipments increased by 46% sequentially, driven by strong demand for etch and clean systems.
- 7Investments in R&D remained substantial at 16.9% of revenue, highlighting continued focus on innovation despite economic recovery.