Revenues: $4.17 billion in the September quarter, up 8% from the previous quarter.
Gross profit margin: 48.2%, which exceeds the target range.
Operating margin: 30.9%, above the upper end of the guidance range.
Free cash flow: $1.46 billion, representing 35% of revenue.
Deferred revenue: $2.05 billion, an increase of $495 million from the June quarter.
Customer Support Business Group revenue: approximately $1.8 billion, up 4% from June quarter.
China revenue contribution: 37% of total revenue, down from 39% in the prior quarter.
Dividends paid: $261 million in the September quarter.
Stock Repurchases: Approximately $1 billion will be allocated for public repurchases of market shares.
Cash and cash equivalents: $6.1 billion at end of September quarter.
Inventory: $4.2 billion, inventory turnover improved by 2.1x.
Capital expenditures: $111 million in the September quarter.
Number of employees: Approximately 17,700 full-time employees, an increase of approximately 500 from the previous quarter.
Release date: October 23, 2024
For a complete record of financial statements, see Complete Record of Financial Statements.
Lam Research Corporation (NASDAQ:LRCX) had a strong September quarter, with revenue and earnings per share exceeding the midpoint of guidance.
The company achieved its fifth consecutive quarter of revenue growth, demonstrating solid performance despite a challenging industry environment.
Lam Research Corporation (NASDAQ:LRCX) is well-positioned to benefit from NAND technology upgrades that are expected to drive a recovery in spending.
The company is seeing strong momentum in the advanced packaging space, with SABER 3D revenue more than doubling this year.
Lam Research Corp (NASDAQ:LRCX) is facing strong customer demand for productivity enhancement and equipment intelligence services, leading to increased adoption of its products.
Domestic WFE in China is expected to decline in the second half of this year, impacting Lam Research Corporation’s (NASDAQ:LRCX) revenue from the region.
Gross profit margin decreased slightly due to a decline in customer mix and an increase in incentive compensation.
Operating expenses increased due to increased program spending and incentive compensation, impacting profitability.
The NAND segment has been experiencing an extended downturn cycle, with spending not expected to increase until 2025.
Lam Research Corporation (NASDAQ:LRCX) expects customer mix headwinds to impact gross margin as the percentage of revenue from China declines.
Q: Can you talk about the outlook for WFE in 2025, particularly as it relates to China? A: CEO Timothy Archer: We expect overall WFE to increase next year, but we expect China’s WFE in particular to be lower. Sho. China’s share of Lam’s total income is expected to decrease next year compared to this year. Details will be announced in January.
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Q: Did the NAND usage trend continue into the September quarter? Also, how confident are you about NAND WFE growth next year? A: Timothy Archer, CEO: Yes, NAND usage continues to be strong. A move to higher quality bits is expected to facilitate technology upgrades, which is good for Ram. Regardless of whether WFE rises significantly, we are optimistic about NAND.
Q: How do you see the growth trajectory for HBM and our advanced packaging business in the coming year? A: Timothy Archer, CEO: Our advanced packaging business, powered by AI, has strengthened beyond our expectations. Ta. Advanced packaging that enables system-level performance improvements is expected to continue to grow.
Q: Please tell us more about the adoption of molybdenum (moly) in 3D NAND and how it impacts your business. A: Timothy Archer, CEO: The move to moly is a net benefit for us because it solves the wordline tolerance issue and represents a significant material shift. This transition will benefit NAND and ultimately foundry logic and DRAM.
Q: How do you see the outlook for leading-edge foundry logic given competitive dynamics? A: Timothy Archer, CEO: Our outlook remains positive due to technology changes such as gate-all This creates an opportunity for Ram. The company expects to benefit from new tools and technology transitions, such as backside power distribution and advanced packaging.
For a complete record of financial statements, see Complete Record of Financial Statements.
This article first appeared on GuruFocus.