Summary
Lam Research Corporation reported a significant year-over-year decline in revenue for the first quarter of fiscal year 2024, with revenues falling to $3.48 billion from $5.07 billion in the prior year's quarter. This decrease was attributed to a weakening semiconductor market, particularly in memory, and ongoing U.S. government restrictions on sales to China. Despite the revenue drop, the company demonstrated resilience by increasing its gross margin percentage to 47.5% from 45.5% in the previous quarter, driven by a favorable customer mix, and maintaining a strong focus on research and development. The company also continued its capital return program, repurchasing $843.2 million in treasury stock and paying $230.3 million in dividends, while generating $951.2 million in operating cash flow. Management highlighted that while overall customer demand weakened in calendar year 2023, long-term secular demand for semiconductors and technology inflections are expected to drive sustainable growth. The company has initiated a restructuring plan to align costs with the current business outlook, expecting to incur approximately $7 million in additional charges in the next quarter.
Financial Highlights
52 data points| Revenue | $3.48B |
| Cost of Revenue | $1.83B |
| Gross Profit | $1.65B |
| R&D Expenses | $422.63M |
| SG&A Expenses | $207.02M |
| Operating Expenses | $631.67M |
| Operating Income | $1.02B |
| Interest Expense | $45.33M |
| Net Income | $887.40M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.33B |
Key Highlights
- 1Revenue for the quarter ended September 24, 2023, was $3.48 billion, a decrease of 31.4% compared to $5.07 billion in the same period last year.
- 2Gross margin improved to 47.5% from 46.1% in the prior year's quarter, indicating improved operational efficiency or product mix.
- 3Net income decreased to $887.4 million ($6.66 per diluted share) from $1.43 billion ($10.39 per diluted share) year-over-year.
- 4The company repurchased $843.2 million of treasury stock and paid $230.3 million in dividends, demonstrating a commitment to returning capital to shareholders.
- 5Operating cash flow remained robust at $951.2 million.
- 6Revenue from China represented 48% of total revenue for the quarter, a significant increase from 30% in the prior year, reflecting increased spending by Chinese customers for mature node equipment and potentially indicating a shift in geographic revenue concentration.
- 7Restructuring charges of $9.96 million were incurred, part of a plan to align costs with the business outlook, with an estimated $7 million expected in the next quarter.