Summary
Lam Research Corporation (LRCX) reported its Q3 2012 results with revenue of $659.0 million, a 13% increase from the prior quarter, driven by increased foundry customer investments. Despite revenue growth, year-over-year revenue for the three and nine months ended March 25, 2012, declined by 19% and 23% respectively, attributed to reduced macroeconomic activity impacting customer investments. Gross margin percentage saw a sequential improvement to 40.5% from 40.2% in the prior quarter, but a year-over-year decrease from 46.2%, mainly due to lower factory utilization and unfavorable customer mix. Operating expenses increased sequentially and year-over-year, impacted by investments in R&D, Novellus acquisition costs, and higher variable compensation. The company ended the quarter with a strong liquidity position, holding $2.6 billion in cash, cash equivalents, and short-term investments. During the nine months, net cash provided by operating activities was $402.3 million. The company is progressing with its planned acquisition of Novellus Systems, Inc., a significant all-stock deal valued at approximately $3.3 billion at announcement. This acquisition, along with a substantial share repurchase program of up to $1.6 billion, highlights the company's strategic focus and capital allocation plans.
Financial Highlights
52 data points| Revenue | $658.96M |
| Cost of Revenue | $391.81M |
| Gross Profit | $267.15M |
| R&D Expenses | $113.45M |
| SG&A Expenses | $95.58M |
| Operating Expenses | $209.03M |
| Operating Income | $58.12M |
| Interest Expense | $9.42M |
| Net Income | $45.60M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 1.20B |
| Shares Outstanding (Diluted) | 1.21B |
Key Highlights
- 1Revenue for the third quarter of fiscal year 2012 was $659.0 million, a 13% increase sequentially from the previous quarter.
- 2Gross margin as a percentage of revenue was 40.5%, showing a slight sequential increase from 40.2% in the prior quarter.
- 3Net income for the quarter was $45.6 million, resulting in diluted earnings per share of $0.38.
- 4The company held a robust liquidity position with $2.6 billion in cash, cash equivalents, and short-term investments as of March 25, 2012.
- 5Net cash provided by operating activities for the nine months ended March 25, 2012, was $402.3 million.
- 6Lam Research announced its plan to acquire Novellus Systems, Inc. in an all-stock deal valued at approximately $3.3 billion.
- 7The company has a significant share repurchase program in place, with a $1.6 billion authorization announced in December 2011.