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Mar 26, 2023

Lam Research Q3 2023 Earnings Report

Lam Research's financial performance decreased due to lower wafer fabrication equipment spending.

Key Takeaways

Lam Research reported revenue of $3.87 billion and a GAAP EPS of $6.01 for the quarter ended March 26, 2023. The company's performance was impacted by lower wafer fabrication equipment spending. However, the company delivered solid March quarter performance, including record foundry-related revenues.

Revenue was $3.87 billion.

U.S. GAAP gross margin was 41.5%, U.S. GAAP operating income as a percentage of revenue was 24.4%, and U.S. GAAP diluted EPS was $6.01.

Non-GAAP gross margin was 44.0%, non-GAAP operating income as a percentage of revenue was 28.3%, and non-GAAP diluted EPS was $6.99.

Cash and cash equivalents, short-term investments, and restricted cash and investments balances increased to $5.6 billion.

Total Revenue
$3.87B
Previous year: $4.06B
-4.7%
EPS
$0.699
Previous year: $0.74
-5.5%
Gross Profit
$1.61B
Previous year: $1.82B
-11.6%
Cash and Equivalents
$5.31B
Previous year: $4.19B
+26.5%
Total Assets
$19.2B
Previous year: $16.6B
+16.0%

Lam Research

Lam Research

Lam Research Revenue by Geographic Location

Forward Guidance

For the quarter ended June 25, 2023, Lam is providing the following guidance: Revenue $3.1 Billion+/-$300 Million, Gross margin as a percentage of revenue 43.2%+/-1%, Operating income as a percentage of revenue 24.3%+/-1%, Net income per diluted share $4.75+/-$0.75, Diluted share count 134 million

Positive Outlook

  • Revenue guidance: $3.1 Billion +/- $300 Million
  • Gross margin as a percentage of revenue guidance: 43.2% +/- 1%
  • Operating income as a percentage of revenue guidance: 24.3% +/- 1%
  • Net income per diluted share guidance: $4.75 +/- $0.75
  • Diluted share count: 134 million

Challenges Ahead

  • Potential impact of business combinations
  • Asset acquisitions
  • Divestitures
  • Balance sheet valuation adjustments
  • Financing arrangements

Revenue & Expenses

Visualization of income flow from segment revenue to net income