Summary
Lam Research Corporation (LRCX) reported robust financial results for the quarter ending September 26, 2021, demonstrating significant year-over-year growth. Revenue surged to $4.30 billion, a substantial increase from $3.18 billion in the same period last year, indicating strong demand for its wafer fabrication equipment and services. This top-line growth translated into a considerable rise in net income, reaching $1.18 billion, or $8.27 per diluted share, compared to $823.5 million, or $5.59 per diluted share, in the prior year's quarter. The company highlighted strong performance driven by increased customer spending on capital equipment, particularly in memory and foundry markets, with key geographic contributions from China, Korea, and Taiwan. Despite strong revenue growth, investors should note a slight compression in gross margin percentage to 45.9% from 47.4% year-over-year, attributed to higher manufacturing-related spending and an unfavorable product mix. Operating expenses also saw an increase, driven by higher R&D and SG&A investments, reflecting ongoing commitment to innovation and market expansion. The company also continued its capital return strategy, with significant share repurchases and dividend payments, while maintaining a strong liquidity position with $4.9 billion in cash and investments.
Financial Highlights
53 data points| Revenue | $4.30B |
| Cost of Revenue | $2.33B |
| Gross Profit | $1.98B |
| R&D Expenses | $382.33M |
| SG&A Expenses | $222.19M |
| Operating Expenses | $604.52M |
| Operating Income | $1.37B |
| Interest Expense | $45.41M |
| Net Income | $1.18B |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Basic) | 1.42B |
| Shares Outstanding (Diluted) | 1.43B |
Key Highlights
- 1Revenue increased by 35.5% year-over-year to $4.30 billion, driven by strong demand in the semiconductor equipment market.
- 2Net income grew by 43.3% year-over-year to $1.18 billion.
- 3Diluted earnings per share (EPS) increased by 48.0% year-over-year to $8.27.
- 4Gross margin decreased slightly to 45.9% from 47.4% year-over-year, impacted by higher manufacturing costs and product mix.
- 5The company returned significant capital to shareholders through $1.24 billion in share repurchases and $185.4 million in dividends paid during the quarter.
- 6Deferred revenue stands at $1.11 billion, indicating future revenue potential.
- 7Geographically, China, Korea, and Taiwan were the largest contributors to revenue, collectively representing 73% of total revenue.