What was the primary driver of revenue growth in the quarter?

Revenue growth was primarily driven by strong customer demand for wafer fabrication equipment in the memory and foundry markets, coupled with an increase in customer support-related revenue. Key geographic regions like China, Korea, and Taiwan showed particularly robust performance.

How did the company manage its gross margin amidst supply chain challenges?

Lam Research improved its gross margin to 46.8% through a combination of a favorable customer and product mix, manufacturing cost reductions, and better factory absorption. These factors helped offset some of the impacts of increased variable compensation and broader industry supply chain constraints.

What is the company's outlook regarding supply chain constraints?

The company acknowledged that industry-wide supply chain constraints are expected to continue in the near term and are impacting sequential revenue growth. Management indicated these challenges are primarily related to supplier delays of critical parts.

How is the company managing its liquidity and capital resources?

Lam Research maintains a strong liquidity position, with cash, cash equivalents, investments, and restricted cash and investments totaling $5.6 billion. The company generated substantial cash flow from operations, which, combined with existing balances, is expected to be sufficient to support operations, investments, debt service, and capital expenditures for at least the next twelve months.

LRCX 10-Q Quarterly Report Q2 FY2022 — Revenue, Net Income, EPS

Summary

Lam Research Corporation (LRCX) reported strong financial results for the quarter ended December 26, 2021, with revenue increasing by 22% year-over-year to $4.23 billion and net income rising by 37% to $1.19 billion. The company experienced robust demand across its product lines, particularly in the memory and foundry segments, with significant contributions from its key geographic markets including China, Korea, and Taiwan. Despite facing ongoing industry-wide supply chain constraints that impacted sequential revenue growth, Lam Research demonstrated effective cost management and product mix optimization, leading to an improved gross margin of 46.8%.

Financial Highlights

54 data points

Beta

Revenue

$4.23B

0.5% Gross Margin

Net Income

$1.19B

0.3% Net Margin

EPS (Diluted)

$0.84

Total Assets

$16.69B

Cash & Equivalents

$5.09B

Free Cash Flow

$1.44B

Financial Statements

Beta

Revenue	$4.23B
Cost of Revenue	$2.25B
Gross Profit	$1.98B
R&D Expenses	$403.64M
SG&A Expenses	$236.13M
Operating Expenses	$639.78M
Operating Income	$1.34B
Interest Expense	$45.42M
Net Income	$1.19B
EPS (Basic)	$0.85
EPS (Diluted)	$0.84
Shares Outstanding (Basic)	1.41B
Shares Outstanding (Diluted)	1.42B

Key Highlights

1Revenue for the quarter ended December 26, 2021, was $4.23 billion, a 22% increase compared to the same period last year.
2Net income for the quarter reached $1.19 billion, a 37% increase year-over-year.
3Diluted earnings per share (EPS) was $8.44, up from $5.96 in the prior year's comparable quarter.
4Gross margin improved to 46.8% from 45.9% in the previous quarter, indicating effective cost management and favorable product mix.
5The company's customer support revenue showed strength, contributing significantly alongside system revenue.
6Despite supply chain constraints impacting sequential growth, the company generated strong operating cash flow, reflecting underlying business resilience.
7Cash and cash equivalents, investments, and restricted cash and investments increased to $5.6 billion, demonstrating a healthy liquidity position.

LAM RESEARCH CORP Quarterly Report for Q2 Ended Dec 26, 2021

Summary

Financial Highlights

Key Highlights

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