Delaware
|
|
0-12933
|
|
94-2634797
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification Number)
|
¨
|
|
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))
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 8.01.
|
Other Events
|
Item 9.01.
|
Financial Statements and Exhibits
|
Date:
|
January 23, 2019
|
|
LAM RESEARCH CORPORATION
|
|
|
|
(Registrant)
|
|
|
|
/s/ Douglas R. Bettinger
|
|
|
|
Douglas R. Bettinger
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
•
|
Revenue of
$2.52 billion
.
|
•
|
U.S. GAAP gross margin of
45.4%
, U.S. GAAP operating income as a percentage of revenue of
27.4%
, and U.S. GAAP diluted EPS of
$3.51
.
|
•
|
Non-GAAP gross margin of
46.3%
, non-GAAP operating income as a percentage of revenue of
28.8%
, and non-GAAP diluted EPS of
$3.87
.
|
U.S. GAAP
|
|||||||||||
|
|
December 2018
|
|
September 2018
|
|
Change Q/Q
|
|||||
Revenue
|
|
$
|
2,522,673
|
|
|
$
|
2,330,691
|
|
|
+ 8%
|
|
Gross margin as percentage of revenue
|
|
45.4
|
%
|
|
45.4
|
%
|
|
—
|
|
||
Operating income as percentage of revenue
|
|
27.4
|
%
|
|
25.4
|
%
|
|
+ 200 bps
|
|
||
Diluted EPS
|
|
$
|
3.51
|
|
|
$
|
3.23
|
|
|
+ 9%
|
|
|
|
|
|
|
|
|
|||||
Non-GAAP
|
|||||||||||
|
|
December 2018
|
|
September 2018
|
|
Change Q/Q
|
|||||
Revenue
|
|
$
|
2,522,673
|
|
|
$
|
2,330,691
|
|
|
+ 8%
|
|
Gross margin as percentage of revenue
|
|
46.3
|
%
|
|
46.4
|
%
|
|
- 10 bps
|
|
||
Operating income as percentage of revenue
|
|
28.8
|
%
|
|
27.0
|
%
|
|
+ 180 bps
|
|
||
Diluted EPS
|
|
$
|
3.87
|
|
|
$
|
3.36
|
|
|
+ 15%
|
|
Region
|
Revenue
|
Japan
|
27%
|
Korea
|
25%
|
Taiwan
|
17%
|
China
|
14%
|
Southeast Asia
|
7%
|
United States
|
5%
|
Europe
|
5%
|
|
U.S. GAAP
|
|
Reconciling Items
|
|
Non-GAAP
|
|||||||
Revenue
|
$2.4 Billion
|
+/-
|
$150 Million
|
|
—
|
|
$2.4 Billion
|
+/-
|
$150 Million
|
|||
Gross margin as a percentage of revenue
|
43.6%
|
+/-
|
1%
|
|
$
|
22
|
|
Million
|
|
44.5%
|
+/-
|
1%
|
Operating income as a percentage of revenue
|
23.6%
|
+/-
|
1%
|
|
$
|
34
|
|
Million
|
|
25.0%
|
+/-
|
1%
|
Net income per diluted share
|
$3.21
|
+/-
|
$0.20
|
|
$
|
30
|
|
Million
|
|
$3.40
|
+/-
|
$0.20
|
Diluted share count
|
159 Million
|
|
—
|
|
159 Million
|
•
|
Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $22 million.
|
•
|
Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $34 million.
|
•
|
Earnings per share - amortization related to intangible assets acquired though business combinations, $34 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($5 million); totaling $30 million.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
December 23,
2018 |
|
September 23,
2018 |
|
December 24,
2017 |
|
December 23,
2018 |
|
December 24,
2017 |
||||||||||
Revenue
|
$
|
2,522,673
|
|
|
$
|
2,330,691
|
|
|
$
|
2,580,815
|
|
|
$
|
4,853,364
|
|
|
$
|
5,058,955
|
|
Cost of goods sold
|
1,377,640
|
|
|
1,272,493
|
|
|
1,375,248
|
|
|
2,650,133
|
|
|
2,704,045
|
|
|||||
Gross margin
|
1,145,033
|
|
|
1,058,198
|
|
|
1,205,567
|
|
|
2,203,231
|
|
|
2,354,910
|
|
|||||
Gross margin as a percent of revenue
|
45.4
|
%
|
|
45.4
|
%
|
|
46.7
|
%
|
|
45.4
|
%
|
|
46.5
|
%
|
|||||
Research and development
|
285,556
|
|
|
291,672
|
|
|
281,311
|
|
|
577,228
|
|
|
556,389
|
|
|||||
Selling, general and administrative
|
169,098
|
|
|
174,775
|
|
|
186,885
|
|
|
343,873
|
|
|
367,928
|
|
|||||
Total operating expenses
|
454,654
|
|
|
466,447
|
|
|
468,196
|
|
|
921,101
|
|
|
924,317
|
|
|||||
Operating income
|
690,379
|
|
|
591,751
|
|
|
737,371
|
|
|
1,282,130
|
|
|
1,430,593
|
|
|||||
Operating income as a percent of revenue
|
27.4
|
%
|
|
25.4
|
%
|
|
28.6
|
%
|
|
26.4
|
%
|
|
28.3
|
%
|
|||||
Other expense, net
|
(30,649
|
)
|
|
(377
|
)
|
|
(3,152
|
)
|
|
(31,026
|
)
|
|
(8,654
|
)
|
|||||
Income before income taxes
|
659,730
|
|
|
591,374
|
|
|
734,219
|
|
|
1,251,104
|
|
|
1,421,939
|
|
|||||
Income tax expense
|
(90,875
|
)
|
|
(58,014
|
)
|
|
(744,174
|
)
|
|
(148,889
|
)
|
|
(841,204
|
)
|
|||||
Net income (loss)
|
$
|
568,855
|
|
|
$
|
533,360
|
|
|
$
|
(9,955
|
)
|
|
$
|
1,102,215
|
|
|
$
|
580,735
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
3.67
|
|
|
$
|
3.43
|
|
|
$
|
(0.06
|
)
|
|
$
|
7.10
|
|
|
$
|
3.59
|
|
Diluted
|
$
|
3.51
|
|
|
$
|
3.23
|
|
|
$
|
(0.06
|
)
|
|
$
|
6.73
|
|
|
$
|
3.16
|
|
Number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
155,022
|
|
|
155,658
|
|
|
161,135
|
|
|
155,340
|
|
|
161,638
|
|
|||||
Diluted
|
162,170
|
|
|
165,327
|
|
|
161,135
|
|
|
163,749
|
|
|
183,958
|
|
|||||
Cash dividend declared per common share
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
0.50
|
|
|
$
|
2.20
|
|
|
$
|
0.95
|
|
|
December 23,
2018 |
|
September 23,
2018 |
|
June 24,
2018 |
||||||
|
(unaudited)
|
|
(unaudited)
|
|
(1)
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
3,359,793
|
|
|
$
|
2,568,085
|
|
|
$
|
4,512,257
|
|
Investments
|
275,670
|
|
|
1,050,863
|
|
|
437,338
|
|
|||
Accounts receivable, net
|
1,868,842
|
|
|
1,846,845
|
|
|
2,176,936
|
|
|||
Inventories
|
1,703,307
|
|
|
1,874,194
|
|
|
1,876,162
|
|
|||
Prepaid expenses and other current assets
|
148,233
|
|
|
175,886
|
|
|
147,218
|
|
|||
Total current assets
|
7,355,845
|
|
|
7,515,873
|
|
|
9,149,911
|
|
|||
Property and equipment, net
|
1,013,306
|
|
|
951,376
|
|
|
902,547
|
|
|||
Restricted cash and investments
|
255,292
|
|
|
255,924
|
|
|
256,301
|
|
|||
Goodwill and intangible assets
|
1,736,468
|
|
|
1,767,562
|
|
|
1,802,740
|
|
|||
Other assets
|
407,547
|
|
|
466,842
|
|
|
367,979
|
|
|||
Total assets
|
$
|
10,768,458
|
|
|
$
|
10,957,577
|
|
|
$
|
12,479,478
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Current portion of convertible notes, capital leases and commercial paper
|
$
|
187,102
|
|
|
$
|
550,369
|
|
|
$
|
610,030
|
|
Other current liabilities
|
1,979,735
|
|
|
2,274,596
|
|
|
2,540,278
|
|
|||
Total current liabilities
|
2,166,837
|
|
|
2,824,965
|
|
|
3,150,308
|
|
|||
Long-term debt and capital leases
|
1,813,190
|
|
|
1,805,091
|
|
|
1,806,562
|
|
|||
Income taxes payable
|
859,232
|
|
|
845,740
|
|
|
851,936
|
|
|||
Other long-term liabilities
|
87,827
|
|
|
100,144
|
|
|
90,629
|
|
|||
Total liabilities
|
4,927,086
|
|
|
5,575,940
|
|
|
5,899,435
|
|
|||
Temporary equity, convertible notes
|
57,009
|
|
|
58,812
|
|
|
78,192
|
|
|||
Stockholders’ equity (2)
|
5,784,363
|
|
|
5,322,825
|
|
|
6,501,851
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
10,768,458
|
|
|
$
|
10,957,577
|
|
|
$
|
12,479,478
|
|
(1)
|
Derived from audited financial statements.
|
(2)
|
Common shares issued and outstanding were 153,961 as of December 23, 2018, 153,384 as of September 23, 2018, and 156,892 as of June 24, 2018.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
December 23, 2018
|
|
September 23,
2018 |
|
December 24, 2017
|
|
December 23, 2018
|
|
December 24, 2017
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
568,855
|
|
|
$
|
533,360
|
|
|
$
|
(9,955
|
)
|
|
$
|
1,102,215
|
|
|
$
|
580,735
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
81,794
|
|
|
79,805
|
|
|
79,898
|
|
|
161,599
|
|
|
159,040
|
|
|||||
Deferred income taxes
|
20,797
|
|
|
(83,501
|
)
|
|
(271,478
|
)
|
|
(62,704
|
)
|
|
(228,274
|
)
|
|||||
Equity-based compensation expense
|
38,806
|
|
|
50,343
|
|
|
42,124
|
|
|
89,149
|
|
|
83,907
|
|
|||||
Amortization of note discounts and issuance costs
|
1,031
|
|
|
1,245
|
|
|
4,539
|
|
|
2,276
|
|
|
9,127
|
|
|||||
Other, net
|
(1,343
|
)
|
|
2,191
|
|
|
(1,108
|
)
|
|
848
|
|
|
5,461
|
|
|||||
Changes in operating assets and liabilities
|
(67,521
|
)
|
|
136,843
|
|
|
184,684
|
|
|
69,322
|
|
|
277,014
|
|
|||||
Net cash provided by operating activities
|
642,419
|
|
|
720,286
|
|
|
28,704
|
|
|
1,362,705
|
|
|
887,010
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures and intangible assets
|
(105,923
|
)
|
|
(56,098
|
)
|
|
(84,693
|
)
|
|
(162,021
|
)
|
|
(144,757
|
)
|
|||||
Business acquisition, net of cash acquired
|
—
|
|
|
—
|
|
|
(84
|
)
|
|
—
|
|
|
(115,697
|
)
|
|||||
Net sale (purchases) of available-for-sale securities
|
773,223
|
|
|
(612,583
|
)
|
|
(205,701
|
)
|
|
160,640
|
|
|
(323,475
|
)
|
|||||
Other, net
|
(369
|
)
|
|
(3,650
|
)
|
|
(4,396
|
)
|
|
(4,019
|
)
|
|
(14,996
|
)
|
|||||
Net cash provided by (used for) investing activities
|
666,931
|
|
|
(672,331
|
)
|
|
(294,874
|
)
|
|
(5,400
|
)
|
|
(598,925
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments on debt
|
(6,440
|
)
|
|
(79,831
|
)
|
|
(47,522
|
)
|
|
(86,271
|
)
|
|
(349,249
|
)
|
|||||
Net (repayments) proceeds from issuance of commercial paper
|
(359,518
|
)
|
|
(86
|
)
|
|
798,947
|
|
|
(359,604
|
)
|
|
798,947
|
|
|||||
Proceeds from borrowings on revolving credit facility
|
—
|
|
|
—
|
|
|
750,000
|
|
|
—
|
|
|
750,000
|
|
|||||
Repayments of borrowings on revolving credit facility
|
—
|
|
|
—
|
|
|
(750,000
|
)
|
|
—
|
|
|
(750,000
|
)
|
|||||
Treasury stock purchases
|
(1,519
|
)
|
|
(1,735,895
|
)
|
|
(1,111,450
|
)
|
|
(1,737,414
|
)
|
|
(1,266,835
|
)
|
|||||
Dividends paid
|
(167,907
|
)
|
|
(174,372
|
)
|
|
(73,127
|
)
|
|
(342,279
|
)
|
|
(145,865
|
)
|
|||||
Reissuance of treasury stock related to employee stock purchase plan
|
32,920
|
|
|
—
|
|
|
34,057
|
|
|
32,920
|
|
|
34,057
|
|
|||||
Proceeds from issuance of common stock
|
109
|
|
|
—
|
|
|
3,073
|
|
|
109
|
|
|
4,115
|
|
|||||
Other, net
|
(13,198
|
)
|
|
(9
|
)
|
|
—
|
|
|
(13,207
|
)
|
|
4
|
|
|||||
Net cash used for financing activities
|
(515,553
|
)
|
|
(1,990,193
|
)
|
|
(396,022
|
)
|
|
(2,505,746
|
)
|
|
(924,826
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
(2,721
|
)
|
|
(2,311
|
)
|
|
842
|
|
|
(5,032
|
)
|
|
4,159
|
|
|||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
791,076
|
|
|
(1,944,549
|
)
|
|
(661,350
|
)
|
|
(1,153,473
|
)
|
|
(632,582
|
)
|
|||||
Cash, cash equivalents, and restricted cash at beginning of period
|
2,824,009
|
|
|
4,768,558
|
|
|
2,662,507
|
|
|
4,768,558
|
|
|
2,633,739
|
|
|||||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
3,615,085
|
|
|
$
|
2,824,009
|
|
|
$
|
2,001,157
|
|
|
$
|
3,615,085
|
|
|
$
|
2,001,157
|
|
|
Three Months Ended
|
||||||
|
December 23,
2018 |
|
September 23,
2018 |
||||
Revenue
|
$
|
2,522,673
|
|
|
$
|
2,330,691
|
|
Gross margin
|
$
|
1,167,375
|
|
|
$
|
1,080,540
|
|
Gross margin as percentage of revenue
|
46.3
|
%
|
|
46.4
|
%
|
||
Operating expenses
|
$
|
439,808
|
|
|
$
|
450,540
|
|
Operating income
|
$
|
727,567
|
|
|
$
|
630,000
|
|
Operating income as a percentage of revenue
|
28.8
|
%
|
|
27.0
|
%
|
||
Net income
|
$
|
628,196
|
|
|
$
|
555,460
|
|
Net income per diluted share
|
$
|
3.87
|
|
|
$
|
3.36
|
|
Shares used in per share calculation - diluted
|
162,170
|
|
|
165,327
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||
|
December 23, 2018
|
|
September 23,
2018 |
|
June 24,
2018 |
|
March 25,
2018 |
|
December 23, 2018
|
||||||||||
U.S. GAAP net income
|
$
|
568,855
|
|
|
$
|
533,360
|
|
|
$
|
1,021,146
|
|
|
$
|
778,800
|
|
|
$
|
2,902,161
|
|
Pre-tax non-GAAP items:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold
|
22,342
|
|
|
22,342
|
|
|
22,342
|
|
|
22,342
|
|
|
89,368
|
|
|||||
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative
|
12,490
|
|
|
12,490
|
|
|
16,069
|
|
|
17,074
|
|
|
58,123
|
|
|||||
Restructuring charges - selling, general and administrative
|
2,356
|
|
|
3,417
|
|
|
—
|
|
|
—
|
|
|
5,773
|
|
|||||
Business combination acquisition and integration related costs - selling, general and administrative
|
—
|
|
|
—
|
|
|
728
|
|
|
107
|
|
|
835
|
|
|||||
Amortization of note discounts - other expense, net
|
886
|
|
|
900
|
|
|
1,851
|
|
|
2,860
|
|
|
6,497
|
|
|||||
Realized loss on sale or impairment of investments - other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
46,641
|
|
|
46,641
|
|
|||||
Net income tax benefit on non-GAAP items
|
(5,704
|
)
|
|
(5,838
|
)
|
|
(4,686
|
)
|
|
(11,518
|
)
|
|
(27,746
|
)
|
|||||
Income tax benefit on the conclusion of certain tax matters
|
(1,635
|
)
|
|
—
|
|
|
(9,656
|
)
|
|
(4,511
|
)
|
|
(15,802
|
)
|
|||||
Income tax expense (benefit) associated with U.S. tax reform
|
28,606
|
|
|
(11,211
|
)
|
|
(115,838
|
)
|
|
—
|
|
|
(98,443
|
)
|
|||||
Non-GAAP net income
|
$
|
628,196
|
|
|
$
|
555,460
|
|
|
$
|
931,956
|
|
|
$
|
851,795
|
|
|
$
|
2,967,407
|
|
Non-GAAP net income per diluted share
|
$
|
3.87
|
|
|
$
|
3.36
|
|
|
$
|
5.31
|
|
|
$
|
4.79
|
|
|
$
|
17.44
|
|
GAAP net income per diluted share
|
$
|
3.51
|
|
|
$
|
3.23
|
|
|
$
|
5.82
|
|
|
$
|
4.33
|
|
|
$
|
17.00
|
|
U.S. GAAP number of shares used for per diluted share calculation
|
162,170
|
|
|
165,327
|
|
|
175,432
|
|
|
179,779
|
|
|
170,677
|
|
|||||
Effect of potential dilutive securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of convertible note hedge
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,993
|
)
|
|
(498
|
)
|
|||||
Non-GAAP number of shares used for per diluted share calculation
|
162,170
|
|
|
165,327
|
|
|
175,432
|
|
|
177,786
|
|
|
170,179
|
|
|
Three Months Ended
|
||||||
|
December 23,
2018 |
|
September 23,
2018 |
||||
U.S. GAAP gross margin
|
$
|
1,145,033
|
|
|
$
|
1,058,198
|
|
Pre-tax non-GAAP items:
|
|
|
|
||||
Amortization related to intangible assets acquired through certain business combinations
|
22,342
|
|
|
22,342
|
|
||
Non-GAAP gross margin
|
$
|
1,167,375
|
|
|
$
|
1,080,540
|
|
U.S. GAAP gross margin as a percentage of revenue
|
45.4
|
%
|
|
45.4
|
%
|
||
Non-GAAP gross margin as a percentage of revenue
|
46.3
|
%
|
|
46.4
|
%
|
||
U.S. GAAP operating expenses
|
$
|
454,654
|
|
|
$
|
466,447
|
|
Pre-tax non-GAAP items:
|
|
|
|
||||
Amortization related to intangible assets acquired through certain business combinations
|
(12,490
|
)
|
|
(12,490
|
)
|
||
Restructuring charges
|
(2,356
|
)
|
|
(3,417
|
)
|
||
Non-GAAP operating expenses
|
$
|
439,808
|
|
|
$
|
450,540
|
|
U.S. GAAP operating income
|
$
|
690,379
|
|
|
$
|
591,751
|
|
Non-GAAP operating income
|
$
|
727,567
|
|
|
$
|
630,000
|
|
U.S. GAAP operating income as percent of revenue
|
27.4
|
%
|
|
25.4
|
%
|
||
Non-GAAP operating income as a percent of revenue
|
28.8
|
%
|
|
27.0
|
%
|