Summary
Lam Research Corporation (LRCX) reported solid financial results for the fiscal third quarter ending March 27, 2022, despite facing ongoing supply chain constraints. Revenue for the quarter was $4.06 billion, a slight decrease from the previous quarter but an increase of 5.5% year-over-year. Net income was $1.02 billion, or $7.30 per diluted share. The company highlighted strong customer demand driven by increasing device complexity and the secular demand for semiconductors across memory, foundry, and logic markets. However, persistent supply chain issues impacted the company's ability to fulfill this demand, a trend expected to continue in the near term alongside inflationary cost pressures. Despite these challenges, Lam Research demonstrated resilience. The company generated $2.66 billion in operating cash flow for the nine months ended March 27, 2022, and maintained a healthy cash position of $4.6 billion. Significant capital was returned to shareholders through share repurchases totaling $3.0 billion and $607.2 million in dividends paid during the nine-month period. Management remains optimistic about long-term growth, driven by technological inflections in semiconductor manufacturing and a strong competitive position.
Financial Highlights
54 data points| Revenue | $4.06B |
| Cost of Revenue | $2.24B |
| Gross Profit | $1.82B |
| R&D Expenses | $407.12M |
| SG&A Expenses | $217.41M |
| Operating Expenses | $624.53M |
| Operating Income | $1.19B |
| Interest Expense | $45.43M |
| Net Income | $1.02B |
| EPS (Basic) | $0.73 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 1.39B |
| Shares Outstanding (Diluted) | 1.40B |
Key Highlights
- 1Revenue of $4.06 billion for the quarter, up 5.5% year-over-year, reflecting strong market demand for semiconductor equipment.
- 2Net income of $1.02 billion, translating to $7.30 in diluted earnings per share.
- 3Operating cash flow remains robust at $2.66 billion for the nine months ended March 27, 2022.
- 4Sizable capital return to shareholders, with $3.0 billion in share repurchases and $607.2 million in dividends paid year-to-date.
- 5Supply chain constraints and inflationary pressures are noted as near-term challenges impacting the ability to meet demand.
- 6Company remains well-positioned for long-term growth driven by technological advancements in semiconductor manufacturing.
- 7Geographic revenue breakdown shows significant contributions from China (31%), Korea (24%), and Taiwan (16%) for the nine months ended March 27, 2022.