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Lam Research Corp. (LRCX) filed Quarterly Report for the period ended 2011-12-25.
Lam Research Corp. has a market cap of $5.32 billion; its shares were traded at around $44.51 with a P/E ratio of 12.5 and P/S ratio of 1.7.
This is the annual revenues and earnings per share of LRCX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LRCX.
Highlight of Business Operations:
In the quarter ended December 25, 2011, revenue decreased as compared to the quarter ended September 25, 2011, primarily reflecting the timing of customers’ investments for capacity. Gross margin as a percent of revenues decreased in the December 2011 quarter as compared to the September 2011 quarter due to lower factory and field utilization rates correlated to the lower revenue levels and product mix. Operating expenses in the December 2011 quarter increased as compared to the quarter ended September 2011. This change in operating expenses is related to outside service costs associated with the Novellus acquisition and R&D related activities and reflects our ongoing commitment to long-term R&D in existing businesses.Revenue for the December 2011 quarter decreased 14% compared to the September 2011 quarter and 33% year over year. This decrease is related to the pace and timing of customer investments. The overall Asia region continues to account for a majority of our revenues as a substantial amount of the worldwide capacity additions for semiconductor manufacturing continues to occur in this region. Our deferred revenue balance increased to $192 million as of December 25, 2011 compared to $181 million as of September 25, 2011. Our deferred revenue balance does not include shipments to Japanese customers, to whom title does not transfer until customer acceptance. Shipments to Japanese customers are classified as inventory at cost until the time of acceptance. The anticipated future revenue value from shipments to Japanese customers was approximately $16 million as of December 25, 2011 compared to $43 million as of September 25, 2011.
The decrease in gross margin as a percentage of revenue during the three and six months ended December 2011 quarter as compared to the September 2011 quarter and same periods in the prior year is attributable to reduced factory and field utilization as a result of the decline in business volume and product mix.
The increase in SG&A expenses in the December 2011 quarter compared to the same period in the prior year was primarily due to a $7 million of increases in salary, benefits, and equity compensation related to higher headcount, $7 million of Novellus-related acquisition costs, and a $2 million increase in insurance and taxes, offset by $10 million lower variable compensation expense associated with lower company profitability.
Our effective tax rates for the three and six months ended December 25, 2011 were 16.5% and 17.3%, respectively. Our effective tax rate for the three and six months ended December 26, 2010 were approximately 8.4% and 10.7%, respectively. The increase in the effective tax rate for the three months ended December 25, 2011compared to the three months ended December 26, 2010 was primarily due to the level of income, a decrease in the percentage of profits in jurisdictions with lower tax rates, and an increase in the non-deductible stock-based compensation. The increase in the effective tax rate for the six months ended December 25, 2011 compared to the six months ended December 26, 2010 was primarily due to the level of income, geographical mix of income, and an increase in the non-deductible stock-based compensation.
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