10-QPeriod: Q3 FY2022

LAM RESEARCH CORP Quarterly Report for Q3 Ended Mar 27, 2022

Filed April 26, 2022For Securities:LRCX

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 Statements
Beta
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.

Frequently Asked Questions

Lam Research's revenue growth and strong market position are driven by increasing device complexity and the secular demand for semiconductors across memory, foundry, and logic markets. The company's expertise in deposition, etch, and clean technologies positions it to capitalize on technological inflections such as 3D device scaling and advanced packaging.

The primary near-term challenges identified by Lam Research are ongoing supply chain constraints that are impacting its ability to fulfill customer demand, and inflationary cost pressures. These factors are expected to persist in the near future.

Lam Research is actively returning capital to shareholders through its stock repurchase program and by paying quarterly dividends. For the nine months ended March 27, 2022, the company repurchased approximately $3.0 billion of its common stock and paid $607.2 million in dividends.

Lam Research maintains a strong liquidity position with $4.6 billion in cash, cash equivalents, and restricted cash and investments as of March 27, 2022. The company generated $2.66 billion in operating cash flow for the first nine months of fiscal year 2022 and anticipates its current resources to be sufficient to support operations, investments, and debt service requirements for at least the next twelve months.