Lam Research Corp. (
Consolidated Financial Tables Follow.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)
Three Months Ended Six Months Ended
---------------------------------- ----------------------
December September December December December
29, 29, 23, 29, 23,
2013 2013 2012 2013 2012
---------- ---------- ---------- ---------- ----------
Revenue $1,116,061 $1,015,059 $ 860,886 $2,131,120 $1,767,774
Cost of goods
sold 628,272 583,201 545,472 1,211,473 1,118,474
---------- ---------- ---------- ---------- ----------
Gross margin 487,789 431,858 315,414 919,647 649,300
Gross margin
as a
percent of
revenue 43.7% 42.5% 36.6% 43.2% 36.7%
Research and
development 174,477 170,567 165,951 345,044 329,262
Selling, general
and
administrative 148,838 155,883 145,421 304,721 299,284
---------- ---------- ---------- ---------- ----------
Total
operating
expenses 323,315 326,450 311,372 649,765 628,546
---------- ---------- ---------- ---------- ----------
Operating
income 164,474 105,408 4,042 269,882 20,754
Operating
margin as a
percent of
revenue 14.7% 10.4% 0.5% 12.7% 1.2%
Other expense,
net (3,837) (14,262) (13,390) (18,099) (23,328)
---------- ---------- ---------- ---------- ----------
Income before
income taxes 160,637 91,146 (9,348) 251,783 (2,574)
Income tax
expense
(benefit) 11,645 5,640 (15,756) 17,285 (11,750)
---------- ---------- ---------- ---------- ----------
Net income $ 148,992 $ 85,506 $ 6,408 $ 234,498 $ 9,176
========== ========== ========== ========== ==========
Net income per
share:
Basic net
income per
share $ 0.92 $ 0.52 $ 0.04 $ 1.44 $ 0.05
========== ========== ========== ========== ==========
Diluted net
income per
share $ 0.87 $ 0.50 $ 0.04 $ 1.37 $ 0.05
========== ========== ========== ========== ==========
Number of shares
used in per
share
calculations:
Basic 162,305 162,896 170,699 162,603 175,314
========== ========== ========== ========== ==========
Diluted 171,757 171,363 173,027 171,592 177,490
========== ========== ========== ========== ==========
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 29, September 29, June 30,
2013 2013 2013
------------- ------------- -----------
(unaudited) (unaudited) (1)
ASSETS
Cash and cash equivalents $ 1,132,555 $ 1,156,184 $ 1,162,473
Short-term investments 1,389,735 1,300,031 1,334,745
Accounts receivable, net 909,720 713,524 602,624
Inventories 661,572 614,790 559,317
Deferred income taxes 17,095 29,090 27,674
Other current assets 138,359 110,633 106,996
------------- ------------- -----------
Total current assets 4,249,036 3,924,252 3,793,829
Property and equipment, net 546,193 564,845 603,910
Restricted cash and investments 166,395 166,385 166,536
Goodwill and intangible assets 2,453,066 2,484,900 2,526,541
Other assets 141,108 149,963 159,499
------------- ------------- -----------
Total assets $ 7,555,798 $ 7,290,345 $ 7,250,315
============= ============= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 1,522,572 $ 1,402,890 $ 1,404,475
------------- ------------- -----------
Long-term debt, convertible notes,
and capital leases $ 803,276 $ 796,373 $ 789,256
Income taxes payable 248,996 248,462 246,479
Other long-term liabilities 129,710 129,306 134,313
------------- ------------- -----------
Total liabilities 2,704,554 2,577,031 2,574,523
============= ============= ===========
Senior convertible notes 185,154 186,042 186,920
Stockholders' equity (2) 4,666,090 4,527,272 4,488,872
------------- ------------- -----------
Total liabilities and
stockholders' equity $ 7,555,798 $ 7,290,345 $ 7,250,315
============= ============= ===========
(1) Derived from audited financial statements
(2) Common shares issued and outstanding were 162,169 shares as of December
29, 2013, 162,217 shares as of September 29, 2013 and 162,873 shares as of
June 30, 2013.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended Six Months Ended
---------------------------------- ----------------------
December September December December December
29, 29, 23, 29, 23,
2013 2013 2012 2013 2012
---------- ---------- ---------- ---------- ----------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income $ 148,992 $ 85,506 $ 6,408 $ 234,498 $ 9,176
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation
and
amortization 73,552 74,331 78,388 147,883 153,204
Deferred income
taxes 12,457 - (7,320) 12,457 (19,337)
Impairment of
long-lived
asset 628 7,004 - 7,632 -
Equity-based
compensation
expense 23,046 23,235 24,027 46,281 48,441
Amortization of
convertible
note discount 8,217 8,122 7,843 16,339 15,595
Other, net (2,428) 4,115 14,694 1,687 25,744
Changes in
operating
assets and
liabilities: (135,441) (150,388) 69,186 (285,829) 209,665
---------- ---------- ---------- ---------- ----------
Net cash
provided by
operating
activities 129,023 51,925 193,226 180,948 442,488
---------- ---------- ---------- ---------- ----------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Capital
expenditures and
intangible
assets (38,323) (23,778) (38,924) (62,101) (82,889)
Cash paid for
business
acquisition (18,388) - (8,716) (18,388) (8,716)
Net
sales/maturities
(purchases) of
available-for-
sale securities (88,754) 42,567 (23,250) (46,187) (39,888)
(Issuance)
repayments of
notes receivable 10,000 - - 10,000 -
Proceeds from
sale of assets 21,635 - 660 21,635 660
Transfer of
restricted cash
and investments - 150 33 150 179
---------- ---------- ---------- ---------- ----------
Net cash
provided by
(used for)
investing
activities (113,830) 18,939 (70,197) (94,891) (130,654)
---------- ---------- ---------- ---------- ----------
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Principal
payments on
long-term debt
and capital
lease
obligations (719) (88) (115) (807) (780)
Treasury stock
purchases (47,910) (104,285) (355,010) (152,195) (710,089)
Reissuances of
treasury stock
related to
employee stock
purchase plan (35) 15,154 - 15,119 9,925
Proceeds from
issuance of
common stock 8,449 12,574 6,583 21,023 7,534
---------- ---------- ---------- ---------- ----------
Net cash used
for
financing
activities (40,215) (76,645) (348,542) (116,860) (693,410)
---------- ---------- ---------- ---------- ----------
Effect of
exchange rate
changes on cash 1,393 (508) 4,236 885 7,013
Net decrease in
cash and cash
equivalents (23,629) (6,289) (221,277) (29,918) (374,563)
Cash and cash
equivalents at
beginning of
period 1,156,184 1,162,473 1,411,466 1,162,473 1,564,752
---------- ---------- ---------- ---------- ----------
Cash and cash
equivalents at
end of period $1,132,555 $1,156,184 $1,190,189 $1,132,555 $1,190,189
========== ========== ========== ========== ==========
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
Three Months Three Months
Ended Ended
--------------- ---------------
December 29, September 29,
2013 2013
--------------- ---------------
Revenue $ 1,116,061 $ 1,015,059
Gross margin $ 510,769 $ 456,709
Gross margin as percentage of revenue 45.8% 45.0%
Operating expenses $ 302,103 $ 291,887
Operating income $ 208,666 $ 164,882
Operating margin as a percentage of
revenue 18.7% 16.2%
Net income $ 188,745 $ 139,227
Net income per diluted share $ 1.10 $ 0.81
Shares used in per share calculation -
diluted 171,757 171,363
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited)
Three Months Three Months
Ended Ended
--------------- ---------------
December 29, September 29,
2013 2013
--------------- ---------------
U.S. GAAP net income $ 148,992 $ 85,506
Pre-tax non-GAAP items:
Amortization related to intangible
assets acquired in Novellus transaction
- cost of goods sold 21,491 21,480
Acquisition-related inventory fair value
impact - cost of goods sold 1,225 2,047
Integration costs - cost of goods sold 264 1,324
Integration costs - operating expenses 2,785 8,063
Amortization related to intangible
assets acquired in Novellus transaction
- operating expenses 16,953 16,947
Restructuring charges - operating
expenses - 1,705
Costs associated with rationalization of
certain product configurations -
operating expenses 846 844
Impairment of long lived asset -
operating expenses 628 7,004
Amortization of convertible note
discount, Lam notes - other expense,
net 7,329 7,243
Amortization of convertible note
discount, Novellus assumed notes -
other expense, net 762 859
Gain on sale of investment - other
expense, net (4,813) -
Net tax benefit on non-GAAP items (6,404) (11,646)
Net tax benefit on successful resolution
of certain tax matters (1,313) (2,286)
Tax expense associated with legal-entity
integration - 137
--------------- ---------------
Non-GAAP net income $ 188,745 $ 139,227
=============== ===============
Non-GAAP net income per diluted share $ 1.10 $ 0.81
=============== ===============
Number of shares used for diluted per
share calculation 171,757 171,363
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 Three Months
Ended Ended
--------------- ---------------
December 29, September 29,
2013 2013
--------------- ---------------
U.S. GAAP gross margin $ 487,789 $ 431,858
Pre-tax non-GAAP items:
Amortization related to intangible
assets acquired in Novellus transaction
- cost of goods sold 21,491 21,480
Acquisition-related inventory fair value
impact - cost of goods sold 1,225 2,047
Integration costs - cost of goods sold 264 1,324
--------------- ---------------
Non-GAAP gross margin $ 510,769 $ 456,709
=============== ===============
U.S. GAAP gross margin as a percentage of
revenue 43.7% 42.5%
Non-GAAP gross margin as a percentage of
revenue 45.8% 45.0%
U.S. GAAP operating expenses $ 323,315 $ 326,450
Pre-tax non-GAAP items:
Integration costs - operating expenses (2,785) (8,063)
Amortization related to intangible
assets acquired in Novellus transaction
- operating expenses (16,953) (16,947)
Restructuring charges - operating
expenses - (1,705)
Costs associated with rationalization of
certain product configurations -
operating expenses (846) (844)
Impairment of long lived asset -
operating expenses (628) (7,004)
--------------- ---------------
Non-GAAP operating expenses $ 302,103 $ 291,887
=============== ===============
Non-GAAP operating income $ 208,666 $ 164,822
=============== ===============
Non-GAAP operating margin as a percent of
revenue 18.7% 16.2%
