Lam Research Corporation Reports Financial Results for the Quarter Ended March 30, 2025

, /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended March 30, 2025 (the "March 2025 quarter"). Highlights for the March 2025 quarter were as follows: Revenue of $4.72 billion. U.S. GAAP gross margin of 49.0%, U.S. GAAP operating income as a percentage of revenue of 33.1%, and U.S. GAAP diluted EPS of $1.03. Non-GAAP gross margin of 49.0%, non-GAAP operating income as a percentage of revenue of 32.8%, and non-GAAP diluted EPS of $1.04. Key Financial Data for the Quarters Ended March 30, 2025 and December 29, 2024 (in thousands, except per-share data, percentages, and basis points) U.S. GAAP March 2025 December 2024 Change Q/Q Revenue $ 4,720,175 $ 4,376,047 + 8 % Gross margin as percentage of revenue 49.0 % 47.4 % + 160 bps Operating income as percentage of revenue 33.1 % 30.5 % + 260 bps Diluted EPS $ 1.03 $ 0.92 + 12 % Non-GAAP March 2025 December 2024 Change Q/Q Revenue $ 4,720,175 $ 4,376,047 + 8 % Gross margin as percentage of revenue 49.0 % 47.5 % + 150 bps Operating income as percentage of revenue 32.8 % 30.7 % + 210 bps Diluted EPS $ 1.04 $ 0.91 + 14 % U.S. GAAP Financial Results For the March 2025 quarter, revenue was $4,720 million, gross margin was $2,314 million, or 49.0% of revenue, operating expenses were $752 million, operating income was 33.1% of revenue, and net income was $1,331 million, or $1.03 per diluted share on a U.S. GAAP basis. This compares to revenue of $4,376 million, gross margin of $2,073 million, or 47.4% of revenue, operating expenses of $739 million, operating income of 30.5% of revenue, and net income of $1,191 million, or $0.92 per diluted share, for the quarter ended December 29, 2024 (the "December 2024 quarter"). Non-GAAP Financial Results For the March 2025 quarter, non-GAAP gross margin was $2,312 million, or 49.0% of revenue, non-GAAP operating expenses were $763 million, non-GAAP operating income was 32.8% of revenue, and non-GAAP net income was $1,336 million, or $1.04 per diluted share. This compares to non-GAAP gross margin of $2,077 million, or 47.5% of revenue, non-GAAP operating expenses of $735 million, non-GAAP operating income of 30.7% of revenue, and non-GAAP net income of $1,175 million, or $0.91 per diluted share, for the December 2024 quarter. "Lam's portfolio is the most compelling it's ever been, driving opportunities to expand our addressable market, gain share, and deliver innovative services as deposition and etch intensity increases in the production of advanced semiconductors," said Tim Archer, Lam Research's President and Chief Executive Officer. "Our outlook remains strong even as we address near-term tariff-related uncertainty, and we are highly confident in our ability to outperform semiconductor industry growth in the years to come." Balance Sheet and Cash Flow Results Cash, cash equivalents, and restricted cash balances decreased to $5.5 billion at the end of the March 2025 quarter compared to $5.7 billion at the end of the December 2024 quarter. The decrease was primarily the result of cash deployed for capital return activities, principal payment on debt instruments, and capital expenditures during the quarter, partially offset by cash generated from operating activities. Deferred revenue at the end of the March 2025 quarter decreased to $2,011 million compared to $2,032 million as of the end of the December 2024 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control 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 $587 million as of March 30, 2025 and $453 million as of December 29, 2024. Revenue The geographic distribution of revenue during the March 2025 quarter is shown in the following table: Region Revenue China 31 % Korea 24 % Taiwan 24 % Japan 10 % United States 4 % Southeast Asia 4 % Europe 3 % The following table presents revenue disaggregated between system and customer support-related revenue: Three Months Ended March 30,2025 December 29,2024 March 31,2024 (In thousands) Systems revenue $ 3,035,276 $ 2,625,649 $ 2,395,817 Customer support-related revenue and other 1,684,899 1,750,398 1,397,741 $ 4,720,175 $ 4,376,047 $ 3,793,558 Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean and other wafer fabrication 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 June 29, 2025, Lam is providing the following guidance: U.S. GAAP Reconciling Items Non-GAAP Revenue $5.00 Billion +/- $300 Million — $5.00 Billion +/- $300 Million Gross margin as a percentage of revenue 49.4 % +/- 1 % $ 2.7 Million 49.5 % +/- 1 % Operating income as a percentage of revenue 33.4 % +/- 1 % $ 3.2 Million 33.5 % +/- 1 % Net income per diluted share $1.20 +/- $0.10 $ 3.7 Million $1.20 +/- $0.10 Diluted share count 1.28 Billion — 1.28 Billion 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 - amortization related to intangible assets acquired through business combinations, $2.7 million. Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3.2 million. Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3.2 million; amortization of debt discounts, $0.7 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.7 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 March 2025 and December 2024 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. Additionally, the non-GAAP results for the December 2024 quarter exclude the income tax benefit from a change in tax law. 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 StatementsStatements 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 opportunities, including with respect to our addressable market, share and delivery of services; trends with respect to deposition and etch intensity in semiconductor production; the strength of our outlook; our ability to address the impacts of tariff-related uncertainty; the duration of tariff-related uncertainty; our confidence in our outlook; our relative performance compared the future performance of the industry; and the prospects for future industry growth. Some factors that may affect these forward-looking statements include: business, economic, 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; trade regulations, export controls, tariffs, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; supply chain cost increases, tariffs and other inflationary pressures have impacted and may 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 30, 2024, and our quarterly report on Form 10-Q for the fiscal quarter ended December 29, 2024. 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) Consolidated Financial Tables Follow. LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data and percentages) (unaudited) Three Months Ended Nine Months Ended March 30,2025 December 29,2024 March 31,2024 March 30,2025 March 31,2024 Revenue $ 4,720,175 $ 4,376,047 $ 3,793,558 $ 13,264,198 $ 11,033,879 Cost of goods sold 2,406,489 2,303,066 1,977,820 6,874,848 5,783,087 Restructuring charges, net - cost of goods sold — — 15,202 — 38,099 Total cost of goods sold 2,406,489 2,303,066 1,993,022 6,874,848 5,821,186 Gross margin 2,313,686 2,072,981 1,800,536 6,389,350 5,212,693 Gross margin as a percent of revenue 49.0 % 47.4 % 47.5 % 48.2 % 47.2 % Research and development 525,904 494,947 512,274 1,516,209 1,404,615 Selling, general and administrative 226,023 244,150 215,904 713,301 651,770 Restructuring charges, net - operating expenses — — 15,246 — 18,955 Total operating expenses 751,927 739,097 743,424 2,229,510 2,075,340 Operating income 1,561,759 1,333,884 1,057,112 4,159,840 3,137,353 Operating income as a percent of revenue 33.1 % 30.5 % 27.9 % 31.4 % 28.4 % Other income (expense), net (25,035) 14,262 36,073 19,308 68,513 Income before income taxes 1,536,724 1,348,146 1,093,185 4,179,148 3,205,866 Income tax expense (206,057) (157,128) (127,359) (541,019) (398,376) Net income $ 1,330,667 $ 1,191,018 $ 965,826 $ 3,638,129 $ 2,807,490 Net income per share: Basic $ 1.04 $ 0.93 $ 0.74 $ 2.82 $ 2.13 Diluted $ 1.03 $ 0.92 $ 0.73 $ 2.81 $ 2.12 Number of shares used in per share calculations: Basic 1,283,779 1,287,109 1,308,382 1,290,041 1,316,627 Diluted 1,288,100 1,291,469 1,315,178 1,294,545 1,322,819 Cash dividend declared per common share $ 0.23 $ 0.23 $ 0.20 $ 0.69 $ 0.60 LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 30,2025 December 29,2024 June 30,2024 (unaudited) (unaudited) (1) ASSETS Cash and cash equivalents $ 5,450,718 $ 5,665,379 $ 5,847,856 Accounts receivable, net 3,228,182 3,304,946 2,519,250 Inventories 4,463,275 4,358,152 4,217,924 Prepaid expenses and other current assets 318,147 284,370 298,190 Total current assets 13,460,322 13,612,847 12,883,220 Property and equipment, net 2,372,203 2,313,590 2,154,518 Goodwill and intangible assets 1,795,248 1,761,021 1,765,073 Other assets 2,340,537 2,152,458 1,941,917 Total assets $ 19,968,310 $ 19,839,916 $ 18,744,728 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt and finance lease obligations $ 754,306 $ 504,136 $ 504,814 Other current liabilities 4,735,539 4,846,160 3,833,624 Total current liabilities 5,489,845 5,350,296 4,338,438 Long-term debt and finance lease obligations 3,730,034 4,478,148 4,478,520 Income taxes payable 690,660 669,747 813,304 Other long-term liabilities 546,666 533,699 575,012 Total liabilities 10,457,205 11,031,890 10,205,274 Stockholders' equity (2) 9,511,105 8,808,026 8,539,454 Total liabilities and stockholders' equity $ 19,968,310 $ 19,839,916 $ 18,744,728 (1) Derived from audited financial statements. (2) Common shares issued and outstanding were 1,282,957 as of March 30, 2025, 1,284,956 as of December 29, 2024, and 1,303,769 as of June 30, 2024. LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) Three Months Ended Nine Months Ended March 30,2025 December 29,2024 March 31,2024 March 30,2025 March 31,2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,330,667 $ 1,191,018 $ 965,826 $ 3,638,129 $ 2,807,490 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 97,343 96,200 89,922 287,838 271,342 Deferred income taxes (19,992) (82,854) (24,621) (211,568) (137,606) Equity-based compensation expense 87,115 81,959 76,854 249,085 213,966 Other, net 1,654 (8,592) 10,210 (7,395) 14,242 Changes in operating assets and liabilities (188,124) (535,789) 266,645 (337,013) 620,405 Net cash provided by operating activities 1,308,663 741,942 1,384,836 3,619,076 3,789,839 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures and intangible assets (288,058) (188,349) (103,654) (586,995) (295,922) Net maturities and sales of available-for-sale securities — — 14,650 — 37,766 Other, net (4,857) 12,974 (3,356) 8,154 (10,845) Net cash used for investing activities (292,915) (175,375) (92,360) (578,841) (269,001) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on debt, including finance lease obligations and payments for debt issuance costs (504,037) (1,032) (1,060) (506,003) (255,155) Treasury stock purchases, including excise tax payments (435,321) (697,688) (980,561) (2,130,044) (2,469,257) Dividends paid (295,716) (297,634) (262,707) (854,335) (757,453) Reissuance of treasury stock related to employee stock purchase plan — 60,557 — 60,557 53,081 Proceeds from issuance of common stock, net issuance costs 1,993 (194) 8,235 1,756 12,757 Other, net 526 761 300 963 (5,672) Net cash used for financing activities (1,232,555) (935,230) (1,235,793) (3,427,106) (3,421,699) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 2,380 (26,022) (8,452) (960) (12,758) Net change in cash, cash equivalents, and restricted cash (214,427) (394,685) 48,231 (387,831) 86,381 Cash, cash equivalents, and restricted cash at beginning of period (1) 5,677,399 6,072,084 5,625,522 5,850,803 5,587,372 Cash, cash equivalents, and restricted cash at end of period (1) $ 5,462,972 $ 5,677,399 $ 5,673,753 $ 5,462,972 $ 5,673,753 (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 March 30,2025 December 29,2024 Revenue $ 4,720,175 $ 4,376,047 Gross margin $ 2,312,391 $ 2,077,151 Gross margin as percentage of revenue 49.0 % 47.5 % Operating expenses $ 763,336 $ 734,501 Operating income $ 1,549,055 $ 1,342,650 Operating income as a percentage of revenue 32.8 % 30.7 % Net income $ 1,336,006 $ 1,175,000 Net income per diluted share $ 1.04 $ 0.91 Shares used in per share calculation - diluted 1,288,100 1,291,469 Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Three Months Ended March 30,2025 December 29,2024 U.S. GAAP net income $ 1,330,667 $ 1,191,018 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 2,687 2,817 Elective deferred compensation ("EDC") related liability valuation (decrease) increase - cost of goods sold (3,982) 1,353 EDC related liability valuation (decrease) increase - research and development (7,168) 2,432 Amortization related to intangible assets acquired through certain business combinations - selling, general andadministrative 538 538 EDC related liability valuation (decrease) increase - selling, general and administrative (4,779) 1,626 Amortization of note discounts - other income (expense), net 759 772 Loss (gain) on EDC related asset - other income (expense), net 16,903 (4,502) Net income tax expense (benefit) on non-GAAP items 381 (276) Income tax benefit from a change in tax law — (20,778) Non-GAAP net income $ 1,336,006 $ 1,175,000 Non-GAAP net income per diluted share $ 1.04 $ 0.91 U.S. GAAP net income per diluted share $ 1.03 $ 0.92 U.S. GAAP and non-GAAP number of shares used for per diluted share calculation 1,288,100 1,291,469 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 March 30,2025 December 29,2024 U.S. GAAP gross margin $ 2,313,686 $ 2,072,981 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 2,687 2,817 EDC related liability valuation (decrease) increase (3,982) 1,353 Non-GAAP gross margin $ 2,312,391 $ 2,077,151 U.S. GAAP gross margin as a percentage of revenue 49.0 % 47.4 % Non-GAAP gross margin as a percentage of revenue 49.0 % 47.5 % U.S. GAAP operating expenses $ 751,927 $ 739,097 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (538) (538) EDC related liability valuation decrease (increase) 11,947 (4,058) Non-GAAP operating expenses $ 763,336 $ 734,501 U.S. GAAP operating income $ 1,561,759 $ 1,333,884 Non-GAAP operating income $ 1,549,055 $ 1,342,650 U.S. GAAP operating income as percent of revenue 33.1 % 30.5 % Non-GAAP operating income as a percent of revenue 32.8 % 30.7 % Lam Research Corporation Contacts:Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: [email protected] SOURCE Lam Research Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Lam Research Corporation Reports Financial Results for the Quarter Ended March 30, 2025

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