Summary
Lam Research Corporation (LRCX) reported its quarterly results for the period ending September 23, 2012. The company experienced a significant increase in revenue compared to the prior year, largely driven by the full quarter inclusion of operations from the Novellus acquisition. However, this acquisition also impacted gross margins due to inventory fair value adjustments and amortization of acquired intangible assets. Operating expenses also rose due to combined operations and integration efforts. Despite the increased revenue, net income saw a substantial decrease year-over-year, resulting in a significantly lower diluted earnings per share. The company maintains a strong liquidity position with substantial cash and investments. Investors should note the impact of the Novellus acquisition on financial results, including increased revenues but also higher expenses and a reduced gross margin percentage. The semiconductor industry's cyclical nature and broader economic conditions remain significant risk factors. While the company is focused on integrating Novellus and realizing synergies, its future performance will depend on its ability to navigate industry cycles and technological advancements.
Financial Highlights
52 data points| Revenue | $906.89M |
| Cost of Revenue | $573.00M |
| Gross Profit | $333.89M |
| R&D Expenses | $163.31M |
| SG&A Expenses | $153.86M |
| Operating Expenses | $317.17M |
| Operating Income | $16.71M |
| Interest Expense | $15.14M |
| Net Income | $2.77M |
| EPS (Basic) | $0.00 |
| EPS (Diluted) | $0.00 |
| Shares Outstanding (Basic) | 1.80B |
| Shares Outstanding (Diluted) | 1.82B |
Key Highlights
- 1Revenue for the quarter increased significantly to $906.9 million, up 33% from $680.4 million in the same period last year, largely due to the inclusion of Novellus operations.
- 2Gross margin as a percentage of revenue decreased to 36.8% from 41.7% in the prior year's quarter, primarily due to acquisition-related inventory fair value adjustments and amortization of acquired intangible assets.
- 3Operating expenses rose substantially, with R&D increasing by 59% and SG&A by 92% year-over-year, reflecting the full quarter impact of combined operations and integration costs.
- 4Net income for the quarter was $2.8 million, a sharp decline from $71.8 million in the prior year's quarter, leading to diluted EPS of $0.02 compared to $0.58.
- 5The company maintained a strong liquidity position, with total cash and investments of $2.9 billion as of September 23, 2012.
- 6Significant share repurchases were made, with $355.1 million used for treasury stock purchases during the quarter under an authorized repurchase program.
- 7The company completed the acquisition of Novellus Systems, Inc. on June 4, 2012, valued at approximately $3.0 billion, which significantly impacted the current quarter's financial statements.