Summary
Lam Research Corporation (LRCX) filed an 8-K on July 30, 2008, primarily to disclose its unshipped orders backlog as of June 29, 2008. This disclosure was prompted by investor interest following the company's earnings announcement for the fiscal quarter ended June 29, 2008. The company clarified its definition of backlog, which includes accepted orders for systems, spares, and services anticipated within the next 12 months. Importantly, the backlog as of June 29, 2008, approximated $400 million. While this 8-K provides a specific backlog figure, investors should note Lam Research's cautionary statements regarding backlog's predictive value. The company highlighted that its backlog is not necessarily indicative of future business volumes or actual revenue levels due to factors like potential customer order cancellations, changes in delivery dates, and the possibility of orders being received for shipment in the same quarter. Nevertheless, the $400 million backlog figure offers a snapshot of committed business for the near term.
Key Highlights
- 1Disclosure of unshipped orders backlog as of June 29, 2008, approximating $400 million.
- 2Backlog definition includes systems, spares, and services with accepted written customer requests and delivery expected within 12 months.
- 3Production scheduling is generally based on backlog orders and customer delivery requirements.
- 4Backlog includes orders with agreed-upon prices and product specifications for systems expected to ship within one year.
- 5Spares and services backlog calculation uses volume estimates for contracts without discrete delivery dates.
- 6Company cautions that backlog is not necessarily indicative of future business volumes or actual revenue due to potential cancellations and delivery date changes.
- 7Information furnished under Regulation FD, not deemed 'filed' for Section 18 of the Securities Exchange Act of 1934.