Summary
Lam Research Corporation (LRCX) reported its financial results for the quarter ended September 24, 2011. The company experienced a decline in revenue and profitability compared to the same period in the prior year and the preceding quarter, reflecting the cyclical nature of the semiconductor capital equipment industry. Revenue for the quarter was $680.4 million, down from $805.9 million in the prior year's comparable quarter and $752.0 million in the previous quarter. Despite the revenue decrease, Lam Research demonstrated strong cash flow generation from operations, providing $86.9 million in net cash. The company maintained a healthy liquidity position with approximately $2.2 billion in cash, cash equivalents, and short-term investments. Management expressed confidence in the company's ability to fund operations, investments, and debt service through at least the next 12 months, while also noting the potential need to access capital markets for longer-term funding. Significant financial activities during the quarter included the issuance of $900 million in convertible senior notes in May 2011, which impacted interest expense. The company also continued its share repurchase program, including a $75 million prepayment under a structured share repurchase arrangement.
Financial Highlights
51 data points| Revenue | $680.44M |
| Cost of Revenue | $396.55M |
| Gross Profit | $283.88M |
| R&D Expenses | $102.56M |
| SG&A Expenses | $80.20M |
| Operating Expenses | $184.48M |
| Operating Income | $99.40M |
| Interest Expense | $9.26M |
| Net Income | $71.84M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.06 |
| Shares Outstanding (Basic) | 1.23B |
| Shares Outstanding (Diluted) | 1.24B |
Key Highlights
- 1Revenue for the quarter ended September 24, 2011, was $680.4 million, a decrease of 16% year-over-year and 10% sequentially.
- 2Net income for the quarter was $71.8 million, resulting in diluted earnings per share of $0.58, a significant decrease compared to $193.7 million ($1.55 EPS) in the prior year's comparable quarter.
- 3Gross margin percentage declined to 41.7% from 46.8% in the prior year's comparable quarter, attributed to a less favorable product mix and lower factory utilization.
- 4Operating expenses increased year-over-year, primarily driven by higher Research and Development (R&D) investments, which represented 15.1% of revenue.
- 5The company generated $86.9 million in cash flow from operating activities.
- 6Lam Research maintained a strong liquidity position with $2.2 billion in cash, cash equivalents, and short-term investments as of September 25, 2011.
- 7The company issued $900 million in convertible senior notes in May 2011, contributing to increased interest expense in the current quarter.