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LAM RESEARCH CORP 8-K Report, Financial Results (Jul 31, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 31, 2024
Period End
July 31, 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 July 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Lam Research (LRCX) reported fiscal June 2024 quarter results (13 weeks) that came in above the midpoint of its guidance.

Revenue was $3.87 billiona, up 2.1% quarter-over-quarter but down from $3.21 billion a year earlier. U.S. GAAP operating margin expanded 120 bps sequentially to 29.1%, and U.S. GAAP diluted EPS was $7.78 (up 6.0% Q/Q). Non-GAAP diluted EPS was $8.14.

Growth was driven by the customer support business group, with systems revenue falling sequentially to $2.17 billionb from $2.40 billion while customer support and other revenue rose to $1.70 billion from $1.40 billion. Management said it is investing in R&D and operations to position the company for what it believes will be a multi-year period of strong wafer fab equipment spending. Cash generation was solid, with $862 million of operating cash flow in the quarter.

Lam returned capital through $374 millionc of share repurchases and $262 million of dividends. Cash and restricted cash rose to $5.9 billion, and total debt was roughly $5.0 billion. Deferred revenue declined to $1.55 billion from $1.75 billion, a sequential decrease that merits monitoring as a leading indicator of future system shipments.

For the September 2024 quarter, Lam guided to revenue of $4.05 billiond (±$300 million), U.S. GAAP gross margin of 46.9% (±1%), and non-GAAP gross margin of 47.0% (±1%). Guidance implies non-GAAP EPS of $8.00 (±$0.75) on 131 million diluted shares. China represented 39% of June-quarter revenue, which is a key exposure to export controls and geopolitical risk.

02—Key points

Key Highlights

  1. Revenue of $3.87B, up 2.1% sequentially and 20.7% year over year versus $3.21B in the June 2023 quarter
  2. U.S. GAAP operating margin of 29.1%, up 120 bps sequentially; non-GAAP operating margin of 30.7%
  3. U.S. GAAP diluted EPS of $7.78 (up 6.0% Q/Q); non-GAAP diluted EPS of $8.14 (up 4.5% Q/Q)
  4. Customer support-related revenue rose to $1.70B (up 22% Q/Q) while systems revenue fell 9% Q/Q to $2.17B
  5. Deferred revenue declined to $1.55B from $1.75B, and the Japan-related unrecognized revenue backlog fell to $98M from $107M
  6. Q/Q guidance for September 2024 quarter: revenue of $4.05B ±$300M, non-GAAP EPS of $8.00 ±$0.75
  7. China accounted for 39% of revenue, highlighting concentration and export-control exposure; capital returned via $374M of buybacks and $262M of dividends

03—Questions

Frequently Asked Questions

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

    Lam reported revenue of $3.87 billion, U.S. GAAP operating margin of 29.1%, and U.S. GAAP diluted EPS of $7.78. Results came in above the midpoint of company guidance. Note that the June quarter had 13 weeks versus 14 weeks in the March quarter, so sequential comparisons are affected by the calendar difference.

  2. What is Lam guiding to for the September 2024 quarter?

    Lam guided to revenue of $4.05 billion (±$300 million), U.S. GAAP gross margin of 46.9% (±1%), U.S. GAAP operating margin of 29.4% (±1%), and U.S. GAAP diluted EPS of $7.97 (±$0.75). On a non-GAAP basis, guidance is 47.0% gross margin, 29.5% operating margin, and $8.00 EPS (±$0.75), on 131 million diluted shares.

  3. Why did systems revenue decline while overall revenue grew?

    Systems revenue fell to $2.17B from $2.40B sequentially, reflecting lumpiness in new leading-edge deposition, etch, and clean equipment shipments. Customer support-related revenue (services, spares, upgrades, and Reliant non-leading-edge equipment) rose to $1.70B from $1.40B, offsetting that decline. Investors should note that support revenue is typically more recurring and less cyclical than system sales.

  4. What does the decline in deferred revenue signal?

    Deferred revenue fell to $1.55B from $1.75B. Because this balance reflects customer payments for undelivered products, a decline can indicate fewer advance payments or more shipments recognized as revenue. It is a useful forward indicator for future system revenue, so investors should watch whether it stabilizes in coming quarters.

  5. How is Lam returning capital to shareholders and managing its balance sheet?

    In the June quarter, Lam generated $862M of operating cash flow and spent $374M on share repurchases (including net share settlement) and $262M on dividends. Cash and restricted cash ended at $5.9B, and total debt and finance lease obligations were about $5.0B. Shares outstanding declined to 130.4 million from 130.7 million. Quarterly dividends were $2.00 per share.

04—Continue

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