Summary
Lam Research Corporation's (LRCX) fiscal second-quarter 2016 results, ending December 26, 2015, show a notable increase in revenue and net income compared to the prior year period. Revenue for the quarter reached $1.426 billion, a 16% increase year-over-year, while diluted earnings per share rose to $1.28 from $1.00 in the same period last year. This performance reflects strong demand for semiconductor fabrication equipment driven by technology inflections in the industry. The company also reported significant cash generation and maintained a strong liquidity position with approximately $4.7 billion in total cash and investments. Management highlighted the ongoing strategic investments in R&D to maintain a competitive edge and announced a significant development: the agreement to acquire KLA-Tencor Corporation. This acquisition, if completed, is expected to significantly reshape the company's market position and financial structure.
Financial Highlights
54 data points| Revenue | $1.43B |
| Cost of Revenue | $799.02M |
| Gross Profit | $626.51M |
| R&D Expenses | $220.75M |
| SG&A Expenses | $166.92M |
| Operating Expenses | $387.68M |
| Operating Income | $238.83M |
| Interest Expense | $38.58M |
| Net Income | $222.98M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 1.58B |
| Shares Outstanding (Diluted) | 1.74B |
Key Highlights
- 1Revenue for the quarter ended December 27, 2015, was $1.426 billion, an increase of 16% compared to $1.232 billion for the quarter ended December 28, 2014.
- 2Net income for the quarter increased to $223.0 million, or $1.28 per diluted share, from $176.9 million, or $1.00 per diluted share, in the prior year period.
- 3Gross margin improved to 43.9% from 43.6% in the prior year quarter, indicating better cost management or product mix.
- 4The company reported a strong cash position, with total cash, cash equivalents, investments, and restricted cash totaling $4.7 billion as of December 27, 2015.
- 5Research and Development (R&D) expenses increased to $220.8 million, reflecting continued investment in innovation and new technologies.
- 6The company announced an agreement to acquire KLA-Tencor Corporation, a significant strategic move that could reshape its competitive landscape.
- 7The company's stock repurchase program had $229.1 million remaining as of December 27, 2015, and dividends paid during the six months were $95.6 million.