8-KRegulation FD

LAM RESEARCH CORP 8-K Report, Regulation FD Disclosure (Jul 30, 2008)

Filed July 30, 2008For Securities:LRCX

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.

Frequently Asked Questions

As of June 29, 2008, Lam Research's unshipped orders backlog approximated $400 million.

Lam Research defines its backlog as orders for systems, spares, and services where written customer requests have been accepted and delivery of products or provision of services is anticipated within the next 12 months. For systems, this includes agreed-upon prices and product specifications with shipment expected within a year. For spares and services without discrete delivery dates, volume estimates over a contract period (not exceeding 12 months) are used.

The company explicitly states that its backlog at any particular date is not necessarily indicative of business volumes nor actual revenue levels for succeeding periods. This is due to factors such as orders received for same-quarter shipments, possible customer changes in delivery dates, and a general susceptibility of orders to cancellation by customers with limited penalties.

This information was disclosed in an 8-K filing on July 29, 2008, under Regulation FD Disclosure, following investor interest expressed after the company's earnings call for the fiscal quarter ended June 29, 2008. The company had initially planned to include this information in its upcoming Form 10-K.