lrcx-20221019
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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 19, 2022
  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 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 19, 2022, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 25, 2022, 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 19, 2022
LAM RESEARCH CORPORATION
(Registrant)
 /s/ Douglas R. Bettinger
 Douglas R. Bettinger
 Executive Vice President, Chief Financial Officer
 (Principal Financial Officer and Principal Accounting Officer)
 



Exhibit 99.1
FOR IMMEDIATE RELEASE        
Lam Research Corporation Reports Financial Results for the Quarter Ended September 25, 2022
FREMONT, Calif., October 19, 2022 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 25, 2022 (the “September 2022 quarter”).
Highlights for the September 2022 quarter were as follows:
•Revenue of $5.07 billion.
•U.S. GAAP gross margin of 46.1%, U.S. GAAP operating income as a percentage of revenue of 33.5%, and U.S. GAAP diluted EPS of $10.39.
•Non-GAAP gross margin of 46.0%, non-GAAP operating income as a percentage of revenue of 33.3%, and non-GAAP diluted EPS of $10.42.
Key Financial Data for the Quarters Ended
September 25, 2022 and June 26, 2022
(in thousands, except per-share data, percentages, and basis points) 
U.S. GAAP
   September 2022June 2022Change Q/Q
Revenue  $5,074,121 $4,635,554 + 9.5%
Gross margin as percentage of revenue  46.1 %45.3 %+ 80 bps
Operating income as percentage of revenue  33.5 %31.9 %+ 160 bps
Diluted EPS  $10.39 $8.74 + 18.9%
Non-GAAP
   September 2022June 2022Change Q/Q
Revenue  $5,074,121 $4,635,554 + 9.5%
Gross margin as percentage of revenue  46.0 % 45.2 %+ 80 bps
Operating income as percentage of revenue  33.3 % 31.5 %+ 180 bps
Diluted EPS  $10.42  $8.83 + 18.0%

U.S. GAAP Financial Results
For the September 2022 quarter, revenue was $5,074 million, gross margin was $2,337 million, or 46.1% of revenue, operating expenses were $639 million, operating income was 33.5% of revenue, and net income was $1,426 million, or $10.39 per diluted share on a U.S. GAAP basis. This compares to revenue of $4,636 million, gross margin of $2,101 million, or 45.3% of revenue, operating expenses of $621 million, operating income of 31.9% of revenue, and net income of $1,209 million, or $8.74 per diluted share, for the quarter ended June 26, 2022 (the “June 2022 quarter”).
Non-GAAP Financial Results
For the September 2022 quarter, non-GAAP gross margin was $2,335 million, or 46.0% of revenue, non-GAAP operating expenses were $647 million, non-GAAP operating income was 33.3% of revenue, and non-GAAP net income was $1,429 million, or $10.42 per diluted share. This compares to non-GAAP gross margin of $2,094 million, or 45.2% of revenue, non-GAAP operating expenses of $635 million, non-GAAP operating income of 31.5% of revenue, and non-GAAP net income of $1,221 million, or $8.83 per diluted share, for the June 2022 quarter.

“Lam exceeded $5 billion in revenue in the September quarter, an all-time record. Solid execution combined with easing supply chain conditions produced strong overall performance,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “While we expect weaker wafer fabrication equipment spending in 2023, our technology leadership and demonstrated track record of managing through downturns provide us a strong foundation to capture the exciting opportunities ahead for the semiconductor industry.”





Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances increased to $4.6 billion at the end of the September 2022 quarter compared to $3.9 billion at the end of the June 2022 quarter. This increase was primarily the result of $1,190 million of cash generated from operating activities, partially offset by $206 million of dividends paid to stockholders; $140 million of capital expenditures; and $110 million of share repurchases, including net share settlement of employee stock-based compensation.
Deferred revenue at the end of the September 2022 quarter increased to $2,755 million compared to $2,198 million as of the end of the June 2022 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptances. 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 $401 million as of September 25, 2022 and $367 million as of June 26, 2022.
Revenue
The geographic distribution of revenue during the September 2022 quarter is shown in the following table:
RegionRevenue
China30%
Taiwan22%
Korea17%
Southeast Asia11%
Japan9%
United States6%
Europe5%
The following table presents revenue disaggregated between system and customer support-related revenue:
Three Months Ended
September 25,
2022		June 26,
2022		September 26,
2021
(In thousands)
System revenue$3,181,987 $3,006,374 $2,924,883 
Customer support-related revenue and other1,892,134 1,629,180 1,379,582 
$5,074,121 $4,635,554 $4,304,465 
System 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 25, 2022, Lam is providing the following guidance:

U.S. GAAPReconciling ItemsNon-GAAP
Revenue$5.1 Billion+/-$300 Million—$5.1 Billion+/-$300 Million
Gross margin as a percentage of revenue44.5%+/-1%$1 Million44.5%+/-1%
Operating income as a percentage of revenue31.5%+/-1%$3 Million31.5%+/-1%
Net income per diluted share$9.98+/-$0.75$3 Million$10.00+/-$0.75
Diluted share count136 Million—136 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 recognized after the date of this release. 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 - amortization related to intangible assets acquired through business combinations, $1 million.

•Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3 million.

•Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($1 million); totaling $3 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 2022 and June 2022 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, and the net income tax effect of non-GAAP items.
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 expectations for wafer fabrication equipment spending; our technology leadership; and the opportunities ahead for the semiconductor industry and our ability to capture those opportunities. 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; supply chain disruptions have limited and are expected to continue to limit our ability to meet demand for our products; supply chain cost increases and other inflationary pressures have impacted and are expected to continue to impact our profitability; 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; the severity, magnitude and duration of the COVID–19 pandemic (and the related governmental, public health, business and community responses to it), and their impacts on our business, results of operations and financial condition, are evolving and are highly uncertain and unpredictable; and widespread outbreaks of illness 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 26, 2022. 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 25,
2022		June 26,
2022		September 26,
2021
Revenue$5,074,121 $4,635,554 $4,304,465 
Cost of goods sold2,737,286 2,535,042 2,327,711 
Gross margin2,336,835 2,100,512 1,976,754 
Gross margin as a percent of revenue46.1 %45.3 %45.9 %
Research and development433,375 411,157 382,327 
Selling, general and administrative205,620 210,002 222,194 
Total operating expenses638,995 621,159 604,521 
Operating income1,697,840 1,479,353 1,372,233 
Operating income as a percent of revenue33.5 %31.9 %31.9 %
Other income (expense), net(43,095)(120,448)(28,857)
Income before income taxes1,654,745 1,358,905 1,343,376 
Income tax expense(228,866)(149,971)(163,632)
Net income$1,425,879 $1,208,934 $1,179,744 
Net income per share:
Basic$10.42 $8.76 $8.32 
Diluted$10.39 $8.74 $8.27 
Number of shares used in per share calculations:
Basic136,891 137,993 141,743 
Diluted137,208 138,313 142,612 
Cash dividend declared per common share$1.725 $1.50 $1.50 
 














 LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
September 25,
2022		June 26,
2022		September 26,
2021
(unaudited)(1)(unaudited)
ASSETS
Cash and cash equivalents$4,256,499 $3,522,001 $4,042,151 
Investments120,551 135,731 569,472 
Accounts receivable, net4,569,735 4,313,818 3,397,180 
Inventories4,360,325 3,966,294 2,872,141 
Prepaid expenses and other current assets305,554 347,391 263,738 
Total current assets13,612,664 12,285,235 11,144,682 
Property and equipment, net1,718,791 1,647,587 1,372,533 
Restricted cash and investments250,955 251,534 251,448 
Goodwill and intangible assets1,624,932 1,616,963 1,614,959 
Other assets1,513,940 1,394,313 1,181,930 
Total assets$18,721,282 $17,195,632 $15,565,552 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt and finance lease obligations$7,110 $7,381 $6,368 
Other current liabilities5,046,272 4,557,378 3,402,852 
Total current liabilities5,053,382 4,564,759 3,409,220 
Long-term debt and finance lease obligations4,996,363 4,998,449 4,988,964 
Income taxes payable840,214 931,117 881,325 
Other long-term liabilities418,756 422,941 466,000 
Total liabilities11,308,715 10,917,266 9,745,509 
Stockholders’ equity (2)7,412,567 6,278,366 5,820,043 
Total liabilities and stockholders’ equity$18,721,282 $17,195,632 $15,565,552 
 
(1)Derived from audited financial statements.
(2)
Common shares issued and outstanding were 136,374 as of September 25, 2022, 136,975 as of June 26, 2022, and 140,811 as of September 26, 2021.
 




 
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
 Three Months Ended
 September 25,
2022		June 26,
2022		September 26,
2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$1,425,879 $1,208,934 $1,179,744 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization75,751 87,932 79,874 
Deferred income taxes(133,616)(173,987)(13,023)
Equity-based compensation expense71,110 69,588 58,099 
Other, net(2,751)33,574 (8,690)
Changes in operating assets and liabilities(246,785)(782,107)(838,480)
Net cash provided by operating activities1,189,588 443,934 457,524 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets(140,063)(125,746)(136,427)
Net maturities and sales of available-for-sale securities14,695 23,486 738,043 
Other, net(2,435)26,323 (4,923)
Net cash (used for) provided by investing activities(127,803)(75,937)596,693 
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt(1,854)(2,032)(6,338)
Treasury stock purchases(109,779)(876,089)(1,236,753)
Dividends paid(205,615)(208,056)(185,431)
Reissuance of treasury stock related to employee stock purchase plan— 61,798 — 
Proceeds from issuance of common stock6,796 997 742 
Other, net(489)(152)188 
Net cash used for financing activities(310,941)(1,023,534)(1,427,592)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(16,925)(16,683)(3,776)
Net increase (decrease) in cash, cash equivalents, and restricted cash733,919 (672,220)(377,151)
Cash, cash equivalents, and restricted cash at beginning of period3,773,535 4,445,755 4,670,750 
Cash, cash equivalents, and restricted cash at end of period$4,507,454 $3,773,535 $4,293,599 



 
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended
September 25,
2022		June 26,
2022
Revenue$5,074,121 $4,635,554 
Gross margin$2,335,168 $2,094,006 
Gross margin as percentage of revenue46.0 %45.2 %
Operating expenses$647,239 $634,631 
Operating income$1,687,929 $1,459,375 
Operating income as a percentage of revenue33.3 %31.5 %
Net income$1,429,495 $1,221,257 
Net income per diluted share$10.42 $8.83 
Shares used in per share calculation - diluted137,208 138,313 
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited) 
Three Months Ended
September 25,
2022		June 26,
2022
U.S. GAAP net income$1,425,879 $1,208,934 
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold1,451 1,308 
Elective deferred compensation ("EDC") related liability valuation decrease - cost of goods sold(3,118)(7,814)
EDC related liability valuation decrease - research and development(5,612)(14,065)
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative1,110 9,969 
EDC related liability valuation decrease - selling, general and administrative(3,742)(9,376)
Amortization of note discounts - other income (expense), net707 701 
Loss on EDC related asset - other income (expense), net12,726 32,316 
Net income tax expense (benefit) on non-GAAP items94 (716)
Non-GAAP net income$1,429,495 $1,221,257 
Non-GAAP net income per diluted share$10.42 $8.83 
U.S. GAAP net income per diluted share$10.39 $8.74 
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation137,208 138,313 



 
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 25,
2022		June 26,
2022
U.S. GAAP gross margin$2,336,835 $2,100,512 
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations1,451 1,308 
EDC related liability valuation decrease(3,118)(7,814)
Non-GAAP gross margin$2,335,168 $2,094,006 
U.S. GAAP gross margin as a percentage of revenue46.1 %45.3 %
Non-GAAP gross margin as a percentage of revenue46.0 %45.2 %
U.S. GAAP operating expenses$638,995 $621,159 
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations(1,110)(9,969)
EDC related liability valuation decrease9,354 23,441 
Non-GAAP operating expenses$647,239 $634,631 
U.S. GAAP operating income$1,697,840 $1,479,353 
Non-GAAP operating income$1,687,929 $1,459,375 
U.S. GAAP operating income as percent of revenue33.5 %31.9 %
Non-GAAP operating income as a percent of revenue33.3 %31.5 %
 
Lam Research Corporation Contacts:
Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: [email protected]