10-QPeriod: Q1 FY2025

LAM RESEARCH CORP Quarterly Report for Q1 Ended Sep 29, 2024

Filed October 28, 2024For Securities:LRCX

Summary

Lam Research Corporation reported a strong performance for the fiscal first quarter of 2025, with revenue increasing by 19.7% year-over-year to $4.17 billion. This growth was primarily driven by increased customer investments in the Foundry and DRAM market segments, partially offset by a decrease in non-volatile memory spending. The company's operational efficiency and strategic focus on leading-edge semiconductor manufacturing equipment have resulted in a notable improvement in profitability. Net income saw a significant rise of 25.8% to $1.12 billion, with diluted earnings per share increasing from $0.67 to $0.86. The company also demonstrated robust cash flow generation, with net cash provided by operating activities at $1.57 billion. Lam Research continues to prioritize shareholder returns through its active share repurchase program and dividend payments, while maintaining a strong liquidity position with cash, cash equivalents, and restricted cash totaling $6.1 billion.

Financial Highlights

51 data points
Beta

Revenue

$4.17B

48.0% Gross Margin

Net Income

$1.12B

26.8% Net Margin

EPS (Diluted)

$0.86

Total Assets

$19.53B

Cash & Equivalents

$6.07B

Free Cash Flow

$1.57B

Financial Statements
Beta
Revenue$4.17B
Cost of Revenue$2.17B
Gross Profit$2.00B
R&D Expenses$495.36M
SG&A Expenses$243.13M
Operating Expenses$738.49M
Operating Income$1.26B
Net Income$1.12B
EPS (Basic)$0.86
EPS (Diluted)$0.86
Shares Outstanding (Basic)1.30B
Shares Outstanding (Diluted)1.30B

Key Highlights

  • 1Revenue increased by 19.7% to $4.17 billion compared to the prior year's quarter, driven by strong customer demand in Foundry and DRAM markets.
  • 2Net income grew by 25.8% year-over-year to $1.12 billion, showcasing improved profitability.
  • 3Diluted earnings per share rose from $0.67 to $0.86, reflecting enhanced shareholder value.
  • 4Operating cash flow was robust at $1.57 billion, indicating strong cash generation capabilities.
  • 5The company continued its share repurchase program, spending $1.0 billion on treasury stock purchases during the quarter.
  • 6Gross margin improved to 48.0% from 47.5% in the previous quarter, driven by factory efficiencies.
  • 7The company maintained a strong liquidity position with $6.1 billion in cash, cash equivalents, and restricted cash.

Frequently Asked Questions

Revenue growth was primarily driven by increased customer investments in the Foundry and DRAM market segments. While non-volatile memory spending decreased, the overall increase in demand for semiconductor manufacturing equipment supported the strong top-line performance.

Profitability improved significantly, with net income increasing by 25.8% to $1.12 billion. This was supported by revenue growth and improved gross margins, indicating effective operational management.

Lam Research actively returns capital to shareholders through its share repurchase program and by paying dividends. In this quarter, the company spent approximately $1.0 billion on share repurchases and also paid dividends.

The company maintains a strong liquidity position, with cash, cash equivalents, and restricted cash totaling $6.1 billion as of September 29, 2024. This provides financial flexibility for operations, investments, and shareholder returns.