01—Abstract
Summary
Summary of the 10-Q filed April 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Lam Research Corporation reported solid financial results for the third quarter of fiscal year 2024, with revenue at $3.79 billiona, a slight increase of 1% sequentially, driven by strong performance in the China region.
Net income also saw a sequential increase to $965.8 millionb. The company highlighted a robust gross margin of 47.5%, an improvement from the prior quarter, attributed to favorable product and customer mix and improved factory efficiencies. Looking at the year-to-date performance, revenue for the nine months ended March 31, 2024, was $11.03 billion, a decrease from the prior year, primarily due to reduced spending in NAND, Foundry, and Logic markets, partially offset by increased DRAM spending.
Despite the year-over-year revenue decline, the company maintained strong operational execution, supported by significant investments in research and development to drive future innovation in semiconductor manufacturing technologies. Lam Research also continued its capital return program, with substantial share repurchases and dividend payments.
02—Key points
Key Highlights
- Revenue for the third quarter of fiscal 2024 was $3.79 billion, a slight 1% increase sequentially, with China being a key contributor.
- Net income for the quarter was $965.8 million, leading to diluted EPS of $7.34.
- Gross margin improved sequentially to 47.5% from 46.8% in the prior quarter, driven by favorable mix and operational efficiencies.
- Year-to-date revenue for the nine months ended March 31, 2024, was $11.03 billion, down from $14.22 billion in the prior year, reflecting market shifts in NAND, Foundry, and Logic.
- The company continued significant R&D investment, with R&D expenses at 13.5% of revenue for the quarter.
- Lam Research returned substantial capital to shareholders, with $860.1 million in share repurchases and $262.7 million in dividends paid during the quarter.
- Cash and cash equivalents, investments, and restricted cash stood at $5.7 billion as of March 31, 2024, providing strong liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Lam Research Corp kept $0.25.
- Revenue$3.79B100.0%
- Cost of revenue−$1.99B52.5%
- Gross profit$1.80B47.5%
- Operating costs−$743.4M19.6%
- Operating income$1.06B27.9%
- Interest, other & tax−$91.3M2.4%
- Net income$965.8M25.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed April 29, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $3.79B$3.87B | −2.0% |
| Cost of Revenue | $1.99B$2.26B | −12.0% |
| Gross Profit | $1.80B$1.61B | +12.1% |
| R&D Expenses | $512.27M$429.45M | +19.3% |
| SG&A Expenses | $215.90M$193.50M | +11.6% |
| Operating Expenses | $743.42M$663.36M | +12.1% |
| Operating Income | $1.06B$942.25M | +12.2% |
| Interest Expense | $47.15M$47.22M | −0.1% |
| Net Income | $965.83M$814.01M | +18.7% |
| EPS (Basic) | $0.74$0.60 | +22.7% |
| EPS (Diluted) | $0.73$0.60 | +21.5% |
| Shares Outstanding (Basic) | 1.31B1.35B | −3.0% |
| Shares Outstanding (Diluted) | 1.32B1.35B | −2.9% |
05—Questions
Frequently Asked Questions
What was the primary driver for the sequential revenue increase in the March 2024 quarter?
The sequential revenue increase of 1% was primarily driven by an increase in revenue generated in the China region.
How has the company's revenue trended year-over-year for the first nine months of fiscal 2024?
For the nine months ended March 31, 2024, revenue was $11.03 billion, a decrease compared to $14.22 billion in the same period of the prior year. This decline was primarily attributed to reduced customer spending in NAND, Foundry, and Logic markets, partially offset by increased spending in DRAM.
What is the company's strategy regarding capital allocation?
Lam Research is committed to returning capital to shareholders through share repurchases and dividends. In the third quarter, the company repurchased $860.1 million of stock and paid $262.7 million in dividends. They also continue to invest in R&D to drive future growth and innovation.
What is the current liquidity position of Lam Research?
The company maintains a strong liquidity position, with $5.7 billion in cash, cash equivalents, investments, and restricted cash as of March 31, 2024, which is expected to be sufficient to support anticipated operations and investments over the next twelve months.
06—Continue