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LAM RESEARCH CORP 8-K Report, Financial Results (Apr 24, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 24, 2024
Period End
April 24, 2024
Security
LRCX
In the record · 2016–202610-K1110-Q328-K128

LRCX filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 128 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’17Nov ’17
  2. Leadership change8-K · Dec ’20Dec ’20
  3. Restructuring8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Lam Research (LRCX) reported fiscal Q3 2024 results (quarter ended March 31, 2024, a 14-week quarter) that came in ahead of the prior quarter on most measures.

Revenue rose 0.9% sequentially to $3.79 billiona, while U.S. GAAP gross margin expanded 70 basis points to 47.5% and non-GAAP gross margin rose 110 basis points to 48.7%. U.S. GAAP diluted EPS was $7.34 (up 1.7% Q/Q) and non-GAAP diluted EPS was $7.79 (up 3.6% Q/Q). Operating margin was broadly flat, with GAAP operating margin of 27.9% (down 20 bps) and non-GAAP operating margin of 30.3% (up 30 bps).

Year-over-year, revenue was down from $3.87 billionb in the March 2023 quarter, and GAAP gross margin improved sharply from 41.5%, reflecting a more favorable mix and cost profile. Cash generation remained strong, with $1.39 billion of operating cash flow in the quarter. Lam returned significant capital to shareholders, spending $981 million on share repurchases and $263 million on dividends.

Cash, short-term investments and restricted cash rose slightly to $5.7 billionc. Total debt fell in the quarter as the current portion of long-term debt rose to $505 million, with total long-term debt and finance lease obligations at about $4.98 billion, and deferred revenue declined to $1.75 billion from $1.93 billion. Inventory and receivables both decreased, with receivables down roughly 19% sequentially, which supported the operating cash flow figure.

Management guided to June 2024 quarter revenue of $3.8 billiond (±$300 million), U.S. GAAP diluted EPS of $7.20 (±$0.75) and non-GAAP diluted EPS of $7.50 (±$0.75), on 131 million diluted shares. CEO Tim Archer characterized the start to calendar 2024 as strong and tied the outlook to AI-driven demand for advanced semiconductor scaling. The guidance implies that revenue and earnings are expected to hold near current levels, so investors will likely focus on whether AI-related wafer fabrication demand can drive growth in subsequent quarters, as well as on China exposure, which accounted for 42% of revenue.

02—Key points

Key Highlights

  1. Revenue of $3.79 billion, up 0.9% sequentially but down about 2% from $3.87 billion a year earlier.
  2. U.S. GAAP gross margin of 47.5% (+70 bps Q/Q) and non-GAAP gross margin of 48.7% (+110 bps Q/Q), indicating improving profitability at the gross level.
  3. U.S. GAAP diluted EPS of $7.34 (+1.7% Q/Q) and non-GAAP diluted EPS of $7.79 (+3.6% Q/Q).
  4. Operating cash flow of $1.39 billion in the quarter, with $981 million in share repurchases and $263 million in dividends returned to shareholders.
  5. Guidance for June 2024 quarter: revenue of $3.8 billion ±$300 million, non-GAAP EPS of $7.50 ±$0.75, and 131 million diluted shares.
  6. Heavy geographic concentration, with China accounting for 42% of revenue, followed by Korea at 24%, creating exposure to export controls and trade tensions.
  7. Deferred revenue decreased to $1.75 billion from $1.93 billion, and the 14-week quarter length should be considered when comparing against the 13-week prior quarter.

03—Questions

Frequently Asked Questions

  1. How did Lam Research perform in the March 2024 quarter?

    Lam reported revenue of $3.79 billion, up 0.9% from the prior quarter. U.S. GAAP diluted EPS was $7.34 and non-GAAP diluted EPS was $7.79. Gross margins improved while operating margins were roughly flat. Note that this was a 14-week quarter versus 13 weeks in the prior period.

  2. What is Lam Research's guidance for the June 2024 quarter?

    Management expects revenue of $3.8 billion (±$300 million), U.S. GAAP gross margin of 46.7% (±1%) and non-GAAP gross margin of 47.5% (±1%), and U.S. GAAP diluted EPS of $7.20 (±$0.75) versus non-GAAP EPS of $7.50 (±$0.75). The company assumes 131 million diluted shares. The guidance implies a broadly flat outlook from the March quarter.

  3. How much cash did Lam generate and return to shareholders?

    Operating cash flow was $1.39 billion for the quarter. Lam spent $981 million on share repurchases (including net share settlement of employee equity awards) and paid $263 million in dividends, which is $2.00 per share. Cash and equivalents plus short-term and restricted investments ended the quarter at $5.7 billion.

  4. What are the main risks to Lam's outlook?

    The company cites export controls and trade tensions, which could limit sales, especially given that China represents 42% of revenue. Other risks include changes in customer and competitor behavior, supply chain cost inflation, supply chain disruptions or capacity constraints, and geopolitical or natural events. Investors should also monitor the timing of AI-related demand, since the company's growth narrative depends on it.

  5. Why did revenue from customer support decline?

    Customer support-related revenue and other fell to $1.40 billion from $1.46 billion sequentially and $1.61 billion a year earlier. The filing does not give a detailed explanation, but this line includes services, spares, upgrades and non-leading-edge Reliant products. Systems revenue rose to $2.40 billion from $2.30 billion, so the mix shifted toward new equipment sales.

04—Continue

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