Q2 2025 Lam Research Corp Earnings Call Transcript
Key Points
- Lam Research Corp (LRCX) reported strong financial results for the December 2024 quarter, with revenue, gross margin, operating margin, and EPS all exceeding guidance midpoints.
- The company achieved record highs in system revenues for both DRAM and Foundry Logic, demonstrating the strength of its product portfolio.
- Lam Research Corp (LRCX) is well-positioned to benefit from technology inflections in AI applications, with shipments for gate-all-around nodes and advanced packaging expected to exceed $3 billion in 2025.
- Strategic investments in R&D and infrastructure have begun to yield important product advances, such as the Cryo 3.0 technology and Aether dry resist solution.
- The company delivered a 160 basis point improvement in operating margin for calendar year 2024, reflecting efficient scaling of operations and strategic investments.
- NAND spending remained at muted levels in 2024, impacting overall growth despite strong performance in other segments.
- The company faces headwinds from customer concentration, which may affect gross margins as the year progresses.
- Lam Research Corp (LRCX) anticipates a $700 million impact from new regulations restricting sales to certain Chinese customers in 2025.
- Reliant product line within the Customer Support Business Group (CSBG) is expected to face headwinds due to reduced spending in mature nodes outside of China.
- The company expects its China revenue percentage to decrease in 2025 compared to 2024, due to geopolitical and regulatory challenges.
Good afternoon and welcome to the Lam Research December 2024 earnings conference call. (Operator Instructions). Please note this event is being recorded. I would now like to turn the conference over to Ram Ganesh, Vice President of Investor Relations. Please go ahead.
Thank you and good afternoon, everyone. Welcome to the Lam Research quarterly earnings conference call. With me today are Tim Archer, President and Chief Executive Officer and Doug Bettinger, Executive Vice President and Chief Financial Officer.
During today's call, we will share our overview on the business environment, and we'll review our financial results for the December 2024 quarter and our outlook for the March 2025 quarter. The press release detailing our financial results was distributed a little after 01:00 PM Pacific Time. The release can also be found on the investor relations section of the company's website along with the presentation slides that accompany today's call.
Today's presentation and Q
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