Summary
Lam Research Corporation (LRCX) reported its financial results for the quarter ending September 28, 2019, with a notable decrease in revenue and net income compared to the prior year's quarter. Revenue for the three months ended September 29, 2019, was $2.17 billion, down from $2.33 billion in the same period of 2018. Net income also saw a decline to $465.8 million, or $3.09 per diluted share, from $533.4 million, or $3.23 per diluted share, year-over-year. This performance reflects a slowdown in customer demand for semiconductor equipment. Despite the revenue dip, the company maintained a strong gross margin and managed operating expenses effectively, demonstrating operational resilience. The company's balance sheet remains robust with a significant cash and investments balance, indicating a solid liquidity position to navigate the industry's cyclical nature. Geographically, revenue distribution showed shifts, with a decrease in Japan's contribution while Taiwan and Korea showed growth. The company continues to invest in research and development, focusing on critical technology inflections in semiconductor manufacturing, such as 3D scaling and advanced packaging, positioning itself for future industry growth. The company also continued its share repurchase program, returning capital to shareholders. While short-term demand may be volatile, Lam Research expresses confidence in its long-term market position and its ability to benefit from ongoing technological advancements in the semiconductor industry.
Financial Highlights
55 data points| Revenue | $2.17B |
| Cost of Revenue | $1.18B |
| Gross Profit | $981.71M |
| R&D Expenses | $286.83M |
| SG&A Expenses | $157.43M |
| Operating Expenses | $444.25M |
| Operating Income | $537.46M |
| Interest Expense | $43.99M |
| Net Income | $465.79M |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.51B |
Key Highlights
- 1Revenue for the quarter was $2.17 billion, a decrease of 7% year-over-year.
- 2Net income for the quarter was $465.8 million, a decrease of 12.7% year-over-year.
- 3Diluted earnings per share (EPS) was $3.09, down from $3.23 in the prior year's quarter.
- 4Gross margin remained strong at 45.3%, though slightly down from 45.4% in the prior year's quarter.
- 5Operating income decreased by 9% year-over-year to $537.5 million.
- 6The company held approximately $5.8 billion in cash, cash equivalents, and investments as of September 29, 2019.
- 7Revenue from China, Taiwan, and Korea showed increases, while revenue from Japan decreased significantly.