LAM RESEARCH CORP Quarterly Report for Q3 Ended Mar 29, 2015

Summary

Lam Research Corporation (LRCX) reported strong financial results for the quarter ended March 29, 2015. Revenue increased by 13% sequentially to $1.39 billion, driven by robust demand from memory customers. Net income also saw a significant rise to $206 million, resulting in diluted EPS of $1.16. The company demonstrated a healthy liquidity position with $4.1 billion in total cash and investments. During the quarter, LRCX successfully issued $1 billion in senior notes, bolstering its financial flexibility. Management expressed confidence in continued growth within the wafer fabrication equipment market for calendar year 2015, citing key technology inflections and increased customer capital expenditures. The balance sheet shows substantial growth in cash and investments, alongside an increase in inventories and accounts receivable, consistent with revenue growth. The company's debt profile saw changes with the new senior note issuance, while strategic investments in Research and Development continued, underscoring a commitment to innovation and future market positioning.

Key Highlights

• 1Revenue increased 13% sequentially to $1.39 billion.
• 2Net income rose to $206.3 million, with diluted EPS of $1.16.
• 3Total cash and investments reached $4.1 billion, up from $3.0 billion at the end of the prior quarter.
• 4The company successfully issued $1 billion in Senior Notes (500 million due 2020 and 500 million due 2025) in March 2015.
• 5Inventories increased by approximately 24% sequentially to $919.7 million.
• 6Research and Development expenses increased by 11% sequentially to $217.9 million, reflecting continued investment in technology.
• 7The company repurchased $125 million of its stock during the quarter.

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