Summary
Lam Research Corporation (LRCX) reported its quarterly results for the period ending September 23, 2018, showing a year-over-year decrease in revenue and net income. Revenue for the three months ended September 23, 2018, was $2.33 billion, down from $2.48 billion in the same period of the prior year. Net income also declined to $533.4 million, compared to $590.7 million in the prior year's quarter. Diluted earnings per share were $3.23, a slight increase from $3.21 in the prior year, though this was influenced by a lower share count due to significant share repurchases. The company's gross margin percentage saw a decrease both sequentially and year-over-year, primarily attributed to lower factory utilization and shifts in customer and product mix. Research and development expenses increased year-over-year, reflecting higher headcount and investments in leading-edge technologies, while selling, general, and administrative expenses saw a decrease. The company's cash and investments position decreased significantly due to substantial share repurchases and dividend payments, partially offset by cash generated from operations.
Financial Highlights
56 data points| Revenue | $2.33B |
| Cost of Revenue | $1.27B |
| Gross Profit | $1.06B |
| R&D Expenses | $291.67M |
| SG&A Expenses | $174.78M |
| Operating Expenses | $466.45M |
| Operating Income | $591.75M |
| Interest Expense | $21.79M |
| Net Income | $533.36M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.65B |
Key Highlights
- 1Revenue for the quarter was $2.33 billion, a decrease of 6% compared to the prior year's quarter ($2.48 billion).
- 2Net income decreased to $533.4 million from $590.7 million in the prior year's quarter.
- 3Diluted EPS was $3.23, a slight increase from $3.21 in the prior year, reflecting a lower share count due to share repurchases.
- 4Gross margin percentage declined to 45.4% from 46.4% in the prior year's quarter, driven by lower factory utilization.
- 5The company repurchased approximately $1.73 billion of its common stock during the quarter, significantly impacting its cash and investments.
- 6Revenue from the Memory market represented 77% of system revenues for the quarter, highlighting a concentration in this segment.
- 7The company adopted ASC 606 (Revenue from Contracts with Customers) during the period, which impacted revenue recognition timing and resulted in a cumulative adjustment to retained earnings.