lrcx-20231018
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
 Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 18, 2023
  LAM RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware 0-12933 94-2634797
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification Number)
4650 Cushing Parkway
Fremont, California 94538
(Address of principal executive offices including zip code)
(510) 572-0200
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, Par Value $0.001 Per ShareLRCXThe Nasdaq Stock Market
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company      ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                      ☐

Table of Contents
Table of Contents
 
Item 2.02.  Results of Operations and Financial Condition 
Item 9.01.  Financial Statements and Exhibits 
SIGNATURES 
EX-99.1

Table of Contents
 Item 2.02.Results of Operations and Financial Condition
On October 18, 2023, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 24, 2023, the text of which is attached hereto as Exhibit 99.1.
The information in this item of this Current Report on Form 8-K, including Exhibit 99.1, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section. Furthermore, the information in this item of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
 Item 9.01.Financial Statements and Exhibits
(d) Exhibits
99.1
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:October 18, 2023
LAM RESEARCH CORPORATION
(Registrant)
 /s/ Douglas R. Bettinger
 Douglas R. Bettinger
 Executive Vice President and Chief Financial Officer
 (Principal Financial Officer)
 



Exhibit 99.1
FOR IMMEDIATE RELEASE        
Lam Research Corporation Reports Financial Results for the Quarter Ended September 24, 2023
FREMONT, Calif., October 18, 2023 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 24, 2023 (the “September 2023 quarter”).
Highlights for the September 2023 quarter were as follows:
•Revenue of $3.48 billion.
•U.S. GAAP gross margin of 47.5%, U.S. GAAP operating income as a percentage of revenue of 29.4%, and U.S. GAAP diluted EPS of $6.66.
•Non-GAAP gross margin of 47.9%, non-GAAP operating income as a percentage of revenue of 30.1%, and non-GAAP diluted EPS of $6.85.
Key Financial Data for the Quarters Ended
September 24, 2023 and June 25, 2023
(in thousands, except per-share data, percentages, and basis points) 
U.S. GAAP
 September 2023June 2023Change Q/Q
Revenue$3,482,062 $3,207,257 + 8.6%
Gross margin as percentage of revenue47.5 %45.5 %+ 200 bps
Operating income as percentage of revenue29.4 %26.6 %+ 280 bps
Diluted EPS$6.66 $5.97 + 11.6%
Non-GAAP
 September 2023June 2023Change Q/Q
Revenue$3,482,062 $3,207,257 + 8.6%
Gross margin as percentage of revenue47.9 % 45.7 %+ 220 bps
Operating income as percentage of revenue30.1 % 27.3 %+ 280 bps
Diluted EPS$6.85  $5.98 + 14.5%

U.S. GAAP Financial Results
For the September 2023 quarter, revenue was $3,482 million, gross margin was $1,655 million, or 47.5% of revenue, operating expenses were $632 million, operating income was 29.4% of revenue, and net income was $887 million, or $6.66 per diluted share on a U.S. GAAP basis. This compares to revenue of $3,207 million, gross margin of $1,458 million, or 45.5% of revenue, operating expenses of $604 million, operating income of 26.6% of revenue, and net income of $803 million, or $5.97 per diluted share, for the quarter ended June 25, 2023 (the “June 2023 quarter”).
Non-GAAP Financial Results
For the September 2023 quarter, non-GAAP gross margin was $1,669 million, or 47.9% of revenue, non-GAAP operating expenses were $622 million, non-GAAP operating income was 30.1% of revenue, and non-GAAP net income was $912 million, or $6.85 per diluted share. This compares to non-GAAP gross margin of $1,465 million, or 45.7% of revenue, non-GAAP operating expenses of $590 million, non-GAAP operating income of 27.3% of revenue, and non-GAAP net income of $803 million, or $5.98 per diluted share, for the June 2023 quarter.

“Lam continues to deliver strong results despite a cyclically soft year for wafer fabrication equipment spending,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “There are tremendous growth vectors ahead for Lam, and we are investing strategically to drive long-term outperformance.”





Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances decreased to $5.2 billion at the end of the September 2023 quarter compared to $5.6 billion at the end of the June 2023 quarter. The decrease was primarily the result of $843 million of share repurchases, including net share settlement of employee stock-based compensation; $253 million of repayment of debt, largely associated with the purchase of certain properties under finance leases; and $230 million of dividends paid to stockholders, partially offset by $951 million of cash generated from operating activities.
Deferred revenue at the end of the September 2023 quarter decreased to $1,690 million compared to $1,838 million as of the end of the June 2023 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $261 million as of September 24, 2023 and $160 million as of June 25, 2023.
Revenue
The geographic distribution of revenue during the September 2023 quarter is shown in the following table:
RegionRevenue
China48%
Korea16%
Japan9%
United States8%
Taiwan7%
Europe7%
Southeast Asia5%
The following table presents revenue disaggregated between system and customer support-related revenue:
Three Months Ended
September 24,
2023		June 25,
2023		September 25,
2022
(In thousands)
Systems revenue$2,056,655 $1,710,359 $3,181,987 
Customer support-related revenue and other1,425,407 1,496,898 1,892,134 
$3,482,062 $3,207,257 $5,074,121 
Systems revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.
Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ended December 24, 2023, Lam is providing the following guidance:
U.S. GAAPReconciling ItemsNon-GAAP
Revenue$3.7 Billion+/-$300 Million—$3.7 Billion+/-$300 Million
Gross margin as a percentage of revenue46.5%+/-1%$17 Million47.0%+/-1%
Operating income as a percentage of revenue28.6%+/-1%$32 Million29.5%+/-1%
Net income per diluted share$6.78+/-$0.75$29 Million$7.00+/-$0.75
Diluted share count132 Million—132 million
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

•Gross margin as a percentage of revenue - restructuring charges, $7 million; transformational costs, $7 million; and amortization related to intangible assets acquired through business combinations, $3 million; totaling $17 million.



•Operating income as a percentage of revenue - transformational costs, $22 million; restructuring charges, $7 million; and amortization related to intangible assets acquired through business combinations, $3 million; totaling $32 million.

•Net income per diluted share - transformational costs, $22 million; restructuring charges, $7 million; amortization related to intangible assets acquired though business combinations, $3 million; amortization of debt discounts, $1 million; and associated tax benefit for non-GAAP items ($4 million); totaling $29 million.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the September 2023 and June 2023 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, net restructuring charges, and transformational costs, and the net income tax effect of non-GAAP items. Additionally, the non-GAAP results for the June 2023 quarter exclude the income tax benefit on conclusion of certain tax matters related to a prior business combination and product rationalization charges.
Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at https://investor.lamresearch.com.
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margin, operating income and net income; our prospects for growth; our investments; and our long-term performance. Some factors that may affect these forward-looking statements include: trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain cost increases and other inflationary pressures have impacted and are expected to continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10–K for the fiscal year ended June 25, 2023. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX-F)
Consolidated Financial Tables Follow.
 ###




 
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited) 
 Three Months Ended
 September 24,
2023		June 25,
2023		September 25,
2022
Revenue$3,482,062 $3,207,257 $5,074,121 
Cost of goods sold1,819,420 1,737,682 2,737,286 
Restructuring charges, net - cost of goods sold7,940 11,446 — 
Total cost of goods sold1,827,360 1,749,128 2,737,286 
Gross margin1,654,702 1,458,129 2,336,835 
Gross margin as a percent of revenue47.5 %45.5 %46.1 %
Research and development422,629 401,951 433,375 
Selling, general and administrative207,023 199,831 205,620 
Restructuring charges, net - operating expenses2,021 1,742 — 
Total operating expenses631,673 603,524 638,995 
Operating income1,023,029 854,605 1,697,840 
Operating income as a percent of revenue29.4 %26.6 %33.5 %
Other income (expense), net2,601 9,010 (43,095)
Income before income taxes1,025,630 863,615 1,654,745 
Income tax expense(138,232)(61,078)(228,866)
Net income$887,398 $802,537 $1,425,879 
Net income per share:
Basic$6.69 $5.99 $10.42 
Diluted$6.66 $5.97 $10.39 
Number of shares used in per share calculations:
Basic132,584 134,052 136,891 
Diluted133,166 134,392 137,208 
Cash dividend declared per common share$2.00 $1.725 $1.725 
 














 LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
September 24,
2023		June 25,
2023		September 25,
2022
(unaudited)(1)(unaudited)
ASSETS
Cash and cash equivalents$5,126,150 $5,337,056 $4,256,499 
Investments30,557 37,641 120,551 
Accounts receivable, net2,810,953 2,823,376 4,569,735 
Inventories4,747,781 4,816,190 4,360,325 
Prepaid expenses and other current assets278,121 214,149 305,554 
Total current assets12,993,562 13,228,412 13,612,664 
Property and equipment, net2,110,511 1,856,672 1,718,791 
Goodwill and intangible assets1,784,000 1,790,943 1,624,932 
Other assets1,650,384 1,905,616 1,764,895 
Total assets$18,538,457 $18,781,643 $18,721,282 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt and finance lease obligations$3,861 $8,358 $7,110 
Other current liabilities4,243,316 4,176,560 5,046,272 
Total current liabilities4,247,177 4,184,918 5,053,382 
Long-term debt and finance lease obligations4,980,460 5,003,183 4,996,363 
Income taxes payable780,511 882,084 840,214 
Other long-term liabilities482,979 501,286 418,756 
Total liabilities10,491,127 10,571,471 11,308,715 
Stockholders’ equity (2)8,047,330 8,210,172 7,412,567 
Total liabilities and stockholders’ equity$18,538,457 $18,781,643 $18,721,282 
 
(1)Derived from audited financial statements.
(2)
Common shares issued and outstanding were 132,072 as of September 24, 2023, 133,297 as of June 25, 2023, and 136,374 as of September 25, 2022.
 




 
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
 Three Months Ended
 September 24,
2023		June 25,
2023		September 25,
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$887,398 $802,537 $1,425,879 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization90,479 89,604 75,751 
Deferred income taxes(24,238)(38,960)(133,616)
Equity-based compensation expense67,211 68,495 71,110 
Other, net(150)40,761 (2,751)
Changes in operating assets and liabilities(69,537)160,288 (246,785)
Net cash provided by operating activities951,163 1,122,725 1,189,588 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets(76,992)(78,670)(140,063)
Net maturities and sales of available-for-sale securities7,275 26,280 14,695 
Other, net(4,966)(2,790)(2,435)
Net cash used for investing activities(74,683)(55,180)(127,803)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt, including finance lease obligations(253,109)(2,061)(1,854)
Treasury stock purchases(843,238)(869,014)(109,779)
Dividends paid(230,332)(232,336)(205,615)
Reissuance of treasury stock related to employee stock purchase plan— 64,903 — 
Proceeds from issuance of common stock2,818 3,438 6,796 
Other, net(2,151)(2,916)(489)
Net cash used for financing activities(1,326,012)(1,037,986)(310,941)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(11,031)1,477 (16,925)
Net (decrease) increase in cash, cash equivalents, and restricted cash(460,563)31,036 733,919 
Cash, cash equivalents, and restricted cash at beginning of period (1)
5,587,372 5,556,336 3,773,535 
Cash, cash equivalents, and restricted cash at end of period (1)
$5,126,809 $5,587,372 $4,507,454 

(1)Restricted cash is reported within Other assets, in the Condensed Consolidated Balance Sheets



 
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended
September 24,
2023		June 25,
2023
Revenue$3,482,062 $3,207,257 
Gross margin$1,669,469 $1,465,207 
Gross margin as percentage of revenue47.9 %45.7 %
Operating expenses$622,219 $589,914 
Operating income$1,047,250 $875,293 
Operating income as a percentage of revenue30.1 %27.3 %
Net income$912,439 $803,125 
Net income per diluted share$6.85 $5.98 
Shares used in per share calculation - diluted133,166 134,392 
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited) 
Three Months Ended
September 24,
2023		June 25,
2023
U.S. GAAP net income$887,398 $802,537 
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold3,149 3,093 
Elective deferred compensation ("EDC") related liability valuation (decrease) increase - cost of goods sold(591)4,288 
Restructuring charges, net - cost of goods sold7,940 11,446 
Product rationalization - cost of goods sold— (13,383)
Transformational costs - cost of goods sold4,269 1,634 
EDC related liability valuation (decrease) increase - research and development(1,064)7,719 
Product rationalization - research and development— (3,795)
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative1,186 1,395 
EDC related liability valuation (decrease) increase - selling, general and administrative(709)5,146 
Product rationalization - selling, general and administrative— (2,891)
Transformational costs - selling, general and administrative8,020 4,294 
Restructuring charges, net - operating expenses2,021 1,742 
Amortization of note discounts - other income (expense), net1,017 724 
Loss (gain) on EDC related asset - other income (expense), net2,901 (16,599)
Net income tax benefit on non-GAAP items(3,098)(1,146)
Income tax benefit on the conclusion of certain tax matters— (3,079)
Non-GAAP net income$912,439 $803,125 
Non-GAAP net income per diluted share$6.85 $5.98 
U.S. GAAP net income per diluted share$6.66 $5.97 
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation133,166 134,392 

 


Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited) 
Three Months Ended
September 24,
2023		June 25,
2023
U.S. GAAP gross margin$1,654,702 $1,458,129 
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations3,149 3,093 
EDC related liability valuation (decrease) increase(591)4,288 
Restructuring charges, net7,940 11,446 
Product rationalization— (13,383)
Transformational costs4,269 1,634 
Non-GAAP gross margin$1,669,469 $1,465,207 
U.S. GAAP gross margin as a percentage of revenue47.5 %45.5 %
Non-GAAP gross margin as a percentage of revenue47.9 %45.7 %
U.S. GAAP operating expenses$631,673 $603,524 
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations(1,186)(1,395)
EDC related liability valuation decrease (increase)1,773 (12,865)
Restructuring charges, net(2,021)(1,742)
Product rationalization— 6,686 
Transformational costs(8,020)(4,294)
Non-GAAP operating expenses$622,219 $589,914 
U.S. GAAP operating income$1,023,029 $854,605 
Non-GAAP operating income$1,047,250 $875,293 
U.S. GAAP operating income as percent of revenue29.4 %26.6 %
Non-GAAP operating income as a percent of revenue30.1 %27.3 %
 
Lam Research Corporation Contacts:
Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: [email protected]