Summary
Lam Research Corporation (LRCX) reported its financial results for the quarter ended March 31, 2013, presenting a mixed financial picture with revenue holding steady sequentially but showing significant year-over-year growth due to the acquisition of Novellus. While revenue performance was stable, the company experienced a net loss in the quarter, a stark contrast to the net income reported in the same period of the previous year. This downturn is attributed, in part, to increased operating expenses, particularly in research and development and selling, general, and administrative functions, as well as acquisition-related costs. Despite these short-term challenges, the company maintains a strong liquidity position with substantial cash and investments, indicating a focus on future growth and operational stability.
Financial Highlights
53 data points| Revenue | $844.93M |
| Cost of Revenue | $505.10M |
| Gross Profit | $339.83M |
| R&D Expenses | $174.21M |
| SG&A Expenses | $154.81M |
| Operating Expenses | $329.01M |
| Operating Income | $10.82M |
| Interest Expense | $15.18M |
| Net Income | $19.00M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 1.63B |
| Shares Outstanding (Diluted) | 1.69B |
Key Highlights
- 1Revenue for the quarter ended March 31, 2013, was $844.9 million, relatively flat compared to the prior quarter ($860.9 million) but a significant increase of 28% from $658.9 million in the same quarter of the previous year, largely due to the Novellus acquisition.
- 2The company reported a net loss of $5.0 million for the three months ended March 31, 2013, compared to a net income of $45.6 million in the prior year's comparable quarter. For the nine months ended March 31, 2013, the net loss was $7.6 million, compared to a net income of $181.6 million in the prior year's nine-month period.
- 3Operating expenses increased substantially, with R&D expenses rising to $174.2 million from $113.4 million year-over-year, and SG&A expenses increasing to $154.8 million from $95.6 million year-over-year, reflecting the combined operations post-Novellus acquisition.
- 4Gross margin as a percentage of revenue was 40.2% for the quarter, a slight decrease from 40.5% in the prior year's quarter, impacted by acquisition-related inventory fair value adjustments and amortization of acquired intangible assets.
- 5The company's cash and cash equivalents, short-term investments, and restricted cash and investments totaled approximately $2.5 billion as of March 31, 2013, providing a strong liquidity position.
- 6Lam Research completed its $1.6 billion share repurchase program during the quarter and announced a new $250 million authorization, indicating confidence and a commitment to returning capital to shareholders.
- 7The company continues to invest heavily in R&D, with a significant portion of revenue allocated to developing leading-edge plasma etch, single-wafer clean, and deposition technologies.