LAM RESEARCH CORP Quarterly Report for Q1 Ended Sep 28, 2014

Summary

Lam Research Corporation (LRCX) reported its financial results for the quarter ending September 28, 2014. The company demonstrated strong revenue growth compared to the prior year, with a 14% increase year-over-year, driven by increased customer capital spending and market share gains in technology inflection areas like FinFET transistors and 3D NAND. Diluted earnings per share also saw significant improvement, rising to $0.80 from $0.50 in the same period last year. Despite a sequential decrease in revenue and gross margin percentage compared to the June 2014 quarter, primarily due to a less favorable product mix and lower factory utilization, the company maintained a healthy financial position. Operating expenses were well-managed, decreasing slightly quarter-over-quarter. Lam Research continued to return capital to shareholders through share repurchases and dividends, indicating confidence in its future cash flow generation and financial stability.

Key Highlights

• 1Revenue increased by 14% to $1.15 billion for the three months ended September 28, 2014, compared to $1.01 billion for the same period in 2013.
• 2Diluted EPS rose to $0.80 for the quarter, a significant increase from $0.50 in the prior year's comparable quarter.
• 3Gross margin percentage improved to 43.9% from 42.5% in the prior year's comparable quarter, despite a sequential decrease from the previous quarter.
• 4Operating expenses were managed effectively, showing a slight decrease quarter-over-quarter and remaining relatively consistent year-over-year as a percentage of revenue.
• 5The company actively returned capital to shareholders, with $308 million used for treasury stock purchases and $29.2 million paid in dividends during the quarter.
• 6Lam Research maintained a strong liquidity position with approximately $3.0 billion in total cash and investments as of September 28, 2014.

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