8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

 Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 27, 2022

  LAM RESEARCH CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	0-12933	94-2634797
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

4650 Cushing Parkway

Fremont, California 94538

(Address of principal executive offices including zip code)

(510) 572-0200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, Par Value $0.001 Per Share	LRCX	The Nasdaq Stock Market
		(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company      ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                      ☐

Table of Contents

Item 2.02.	Results of Operations and Financial Condition	3
Item 9.01.	Financial Statements and Exhibits	3
SIGNATURES		4
EX-99.1

 Item 2.02. Results of Operations and Financial Condition

On July 27, 2022, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 26, 2022, the text of which is attached hereto as Exhibit 99.1.

The information in this item of this Current Report on Form 8-K, including Exhibit 99.1, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section. Furthermore, the information in this item of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

 Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1	Press Release dated July 27, 2022 announcing financial results for the fiscal quarter ended June 26, 2022
104	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:	July 27, 2022	LAM RESEARCH CORPORATION
		(Registrant)
		/s/ Douglas R. Bettinger
		Douglas R. Bettinger
		Executive Vice President, Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE        

Lam Research Corporation Reports Financial Results for the Quarter Ended June 26, 2022

FREMONT, Calif., July 27, 2022 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended June 26, 2022 (the “June 2022 quarter”).

Highlights for the June 2022 quarter were as follows:

•Revenue of $4.64 billion.

•U.S. GAAP gross margin of 45.3%, U.S. GAAP operating income as a percentage of revenue of 31.9%, and U.S. GAAP diluted EPS of $8.74.

•Non-GAAP gross margin of 45.2%, non-GAAP operating income as a percentage of revenue of 31.5%, and non-GAAP diluted EPS of $8.83.

Key Financial Data for the Quarters Ended

June 26, 2022 and March 27, 2022

(in thousands, except per-share data, percentages, and basis points)

U.S. GAAP
	June 2022			March 2022			Change Q/Q
Revenue	$	4,635,554		$	4,060,416		+14%
Gross margin as percentage of revenue	45.3		%	44.7		%	+ 60 bps
Operating income as percentage of revenue	31.9		%	29.4		%	+ 250 bps
Diluted EPS	$	8.74		$	7.30		+20%
Non-GAAP
	June 2022			March 2022			Change Q/Q
Revenue	$	4,635,554		$	4,060,416		+14%
Gross margin as percentage of revenue	45.2		%	44.7		%	+ 50 bps
Operating income as percentage of revenue	31.5		%	29.4		%	+ 210 bps
Diluted EPS	$	8.83		$	7.40		+19%

U.S. GAAP Financial Results

For the June 2022 quarter, revenue was $4,636 million, gross margin was $2,101 million, or 45.3% of revenue, operating expenses were $621 million, operating income was 31.9% of revenue, and net income was $1,209 million, or $8.74 per diluted share on a U.S. GAAP basis. This compares to revenue of $4,060 million, gross margin of $1,817 million, or 44.7% of revenue, operating expenses of $625 million, operating income of 29.4% of revenue, and net income of $1,022 million, or $7.30 per diluted share, for the quarter ended March 27, 2022 (the “March 2022 quarter”).

Non-GAAP Financial Results

For the June 2022 quarter, non-GAAP gross margin was $2,094 million, or 45.2% of revenue, non-GAAP operating expenses were $635 million, non-GAAP operating income was 31.5% of revenue, and non-GAAP net income was $1,221 million, or $8.83 per diluted share. This compares to non-GAAP gross margin of $1,815 million, or 44.7% of revenue, non-GAAP operating expenses of $621 million, non-GAAP operating income of 29.4% of revenue, and non-GAAP net income of $1,036 million, or $7.40 per diluted share, for the March 2022 quarter.

“Lam delivered record levels of revenue and earnings per share in the June quarter, while continuing to operate in a supply-constrained environment,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “With solid operational execution, technology leadership, and a robust installed base business, Lam is well-positioned for long-term growth.”

Balance Sheet and Cash Flow Results

Cash and cash equivalents, short-term investments, and restricted cash and investments balances decreased to $3.9 billion at the end of the June 2022 quarter compared to $4.6 billion the end of the March 2022 quarter. This decrease was primarily the result of $876.1 million of share repurchases, including net share settlement of employee stock-based compensation; $208.1 million of dividends paid to stockholders; and $125.7 million of capital expenditures, partially offset by $443.9 million of cash generated by operating activities.

Deferred revenue at the end of the June 2022 quarter increased to $2,198 million compared to $2,069 million as of the end of the March 2022 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptances. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $367 million as of June 26, 2022 and $263 million as of March 27, 2022.

Revenue

The geographic distribution of revenue during the June 2022 quarter is shown in the following table:

Region	Revenue
China	31%
Korea	24%
Taiwan	19%
United States	8%
Europe	7%
Japan	6%
Southeast Asia	5%

The following table presents revenue disaggregated between system and customer support-related revenue:

	Three Months Ended						Twelve Months Ended
	June 26, 2022		March 27, 2022		June 27, 2021		June 26, 2022		June 27, 2021
	(In thousands)
Systems revenue	$	3,006,374	$	2,650,842	$	2,763,877	$	11,322,271	$	9,764,845
Customer support-related revenue and other	1,629,180		1,409,574		1,381,302		5,904,768		4,861,305
	$	4,635,554	$	4,060,416	$	4,145,179	$	17,227,039	$	14,626,150

System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.

Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.

Outlook

For the quarter ended September 25, 2022, Lam is providing the following guidance:

	U.S. GAAP			Reconciling Items			Non-GAAP
Revenue	$4.9 Billion	+/-	$300 Million	—			$4.9 Billion	+/-	$300 Million
Gross margin as a percentage of revenue	45.0%	+/-	1%	$	1	Million	45.0%	+/-	1%
Operating income as a percentage of revenue	31.4%	+/-	1%	$	3	Million	31.5%	+/-	1%
Net income per diluted share	$9.48	+/-	$0.75	$	3	Million	$9.50	+/-	$0.75
Diluted share count	137 Million			—			137 Million

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed or realized after the date of this release. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

•Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $1 million.

•Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3 million.

•Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($1 million); totaling $3 million.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the June 2022 and March 2022 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax benefit of non-GAAP items.

Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at https://investor.lamresearch.com.

Caution Regarding Forward-Looking Statements

Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margin, operating income and net income; our operational execution and technology leadership; the strength of our installed base business; and our prospects for growth. Some factors that may affect these forward-looking statements include: supply chain disruptions have limited and are expected to continue to limit our ability to meet demand for our products; supply chain cost increases and other inflationary pressures have impacted and are expected to continue to impact our profitability; trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; the severity, magnitude and duration of the COVID–19 pandemic (and the related governmental, public health, business and community responses to it), and their impacts on our business, results of operations and financial condition, are evolving and are highly uncertain and unpredictable; and widespread outbreaks of illness may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10–K for the fiscal year ended June 27, 2021, and our quarterly reports on Form 10–Q for the fiscal quarters ended September 26, 2021, December 26, 2021 and March 27, 2022. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX-F)

Consolidated Financial Tables Follow.

###

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data and percentages)

	Three Months Ended									Twelve Months Ended
	June 26, 2022			March 27, 2022			June 27, 2021			June 26, 2022			June 27, 2021
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(1)
Revenue	$	4,635,554		$	4,060,416		$	4,145,179		$	17,227,039		$	14,626,150
Cost of goods sold	2,535,042			2,243,791			2,229,978			9,355,232			7,820,844
Gross margin	2,100,512			1,816,625			1,915,201			7,871,807			6,805,306
Gross margin as a percent of revenue	45.3		%	44.7		%	46.2		%	45.7		%	46.5		%
Research and development	411,157			407,120			381,749			1,604,248			1,493,408
Selling, general and administrative	210,002			217,408			217,525			885,737			829,875
Total operating expenses	621,159			624,528			599,274			2,489,985			2,323,283
Operating income	1,479,353			1,192,097			1,315,927			5,381,822			4,482,023
Operating income as a percent of revenue	31.9		%	29.4		%	31.7		%	31.2		%	30.6		%
Other expense, net	(120,448)			(57,402)			(7,166)			(188,708)			(111,219)
Income before income taxes	1,358,905			1,134,695			1,308,761			5,193,114			4,370,804
Income tax expense	(149,971)			(112,917)			(164,104)			(587,828)			(462,346)
Net income	$	1,208,934		$	1,021,778		$	1,144,657		$	4,605,286		$	3,908,458
Net income per share:
Basic	$	8.76		$	7.34		$	8.02		$	32.92		$	27.22
Diluted	$	8.74		$	7.30		$	7.98		$	32.75		$	26.90
Number of shares used in per share calculations:
Basic	137,993			139,229			142,662			139,899			143,609
Diluted	138,313			140,057			143,514			140,628			145,320
Cash dividend declared per common share	$	1.50		$	1.50		$	1.30		$	6.00		$	5.20

(1) Derived from audited financial statements.

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	June 26, 2022		March 27, 2022		June 27, 2021
	(unaudited)		(unaudited)		(1)
ASSETS
Cash and cash equivalents	$	3,522,001	$	4,194,719	$	4,418,263
Investments	135,731		160,072		1,310,872
Accounts receivable, net	4,313,818		3,702,320		3,026,430
Inventories	3,966,294		3,479,332		2,689,294
Prepaid expenses and other current assets	347,391		351,658		207,528
Total current assets	12,285,235		11,888,101		11,652,387
Property and equipment, net	1,647,587		1,561,875		1,303,479
Restricted cash and investments	251,534		251,036		252,487
Goodwill and intangible assets	1,616,963		1,627,035		1,622,499
Other assets	1,394,313		1,260,984		1,061,300
Total assets	$	17,195,632	$	16,589,031	$	15,892,152
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt and finance lease obligations	$	7,381	$	7,689	$	11,349
Other current liabilities	4,557,378		4,187,052		3,516,518
Total current liabilities	4,564,759		4,194,741		3,527,867
Long-term debt and finance lease obligations	4,998,449		5,000,657		4,990,333
Income taxes payable	931,117		916,668		948,037
Other long-term liabilities	422,941		450,475		398,727
Total liabilities	10,917,266		10,562,541		9,864,964
Stockholders’ equity (2)	6,278,366		6,026,490		6,027,188
Total liabilities and stockholders’ equity	$	17,195,632	$	16,589,031	$	15,892,152

(1)	Derived from audited financial statements.
(2)	Common shares issued and outstanding were 136,975 as of June 26, 2022, 138,707 as of March 27, 2022, and 142,501 as of June 27, 2021

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended						Twelve Months Ended
	June 26, 2022		March 27, 2022		June 27, 2021		June 26, 2022		June 27, 2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(1)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,208,934	$	1,021,778	$	1,144,657	$	4,605,286	$	3,908,458
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	87,932		84,228		78,397		333,739		307,151
Deferred income taxes	(173,987)		(56,878)		(146,029)		(257,438)		(151,477)
Equity-based compensation expense	69,588		68,543		56,321		259,064		220,164
Other, net	33,574		(3,121)		(27,786)		(44,751)		(17,392)
Changes in operating assets and liabilities	(782,107)		(356,840)		330,375		(1,796,226)		(678,741)
Net cash provided by operating activities	443,934		757,710		1,435,935		3,099,674		3,588,163
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets	(125,746)		(145,368)		(104,622)		(546,034)		(349,096)
Net sale of available-for-sale securities	23,486		79,184		799,965		1,165,884		464,522
Other, net	26,323		(28,380)		(6,282)		(7,575)		(42,155)
Net cash (used for) provided by investing activities	(75,937)		(94,564)		689,061		612,275		73,271
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt	(2,032)		(1,821)		(822,046)		(11,889)		(862,060)
Treasury stock purchases	(876,089)		(1,338,006)		(431,255)		(3,865,663)		(2,697,704)
Dividends paid	(208,056)		(210,587)		(185,385)		(815,290)		(726,992)
Reissuance of treasury stock related to employee stock purchase plan	61,798		—		56,330		108,178		97,764
Proceeds from issuance of common stock	997		492		851		5,682		24,123
Other, net	(152)		214		(269)		45		(2,113)
Net cash used for financing activities	(1,023,534)		(1,549,708)		(1,381,774)		(4,578,937)		(4,166,982)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(16,683)		(5,090)		702		(30,227)		7,215
Net (decrease) increase in cash, cash equivalents, and restricted cash	(672,220)		(891,652)		743,924		(897,215)		(498,333)
Cash, cash equivalents, and restricted cash at beginning of period	4,445,755		5,337,407		3,926,826		4,670,750		5,169,083
Cash, cash equivalents, and restricted cash at end of period	$	3,773,535	$	4,445,755	$	4,670,750	$	3,773,535	$	4,670,750

(1) Derived from audited financial statements.

Non-GAAP Financial Summary

(in thousands, except percentages and per share data)

(unaudited)

	Three Months Ended
	June 26, 2022			March 27, 2022
Revenue	$	4,635,554		$	4,060,416
Gross margin	$	2,094,006		$	1,814,910
Gross margin as percentage of revenue	45.2		%	44.7		%
Operating expenses	$	634,631		$	620,636
Operating income	$	1,459,375		$	1,194,274
Operating income as a percentage of revenue	31.5		%	29.4		%
Net income	$	1,221,257		$	1,036,359
Net income per diluted share	$	8.83		$	7.40
Shares used in per share calculation - diluted	138,313			140,057

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	June 26, 2022		March 27, 2022
U.S. GAAP net income	$	1,208,934	$	1,021,778
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold	1,308		1,153
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold	(7,814)		(2,868)
EDC related liability valuation increase - research and development	(14,065)		(5,161)
Amortization related to intangible assets acquired through certain business combinations -selling, general and administrative	9,969		12,494
EDC related liability valuation increase - selling, general and administrative	(9,376)		(3,441)
Amortization of note discounts - other expense, net	701		695
Loss on EDC related asset - other expense, net	32,316		13,118
Net income tax benefit on non-GAAP items	(716)		(1,409)
Non-GAAP net income	$	1,221,257	$	1,036,359
Non-GAAP net income per diluted share	$	8.83	$	7.40
U.S. GAAP net income per diluted share	$	8.74	$	7.30
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation	138,313		140,057

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 Ended
	June 26, 2022			March 27, 2022
U.S. GAAP gross margin	$	2,100,512		$	1,816,625
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations	1,308			1,153
EDC related liability valuation increase	(7,814)			(2,868)
Non-GAAP gross margin	$	2,094,006		$	1,814,910
U.S. GAAP gross margin as a percentage of revenue	45.3		%	44.7		%
Non-GAAP gross margin as a percentage of revenue	45.2		%	44.7		%
U.S. GAAP operating expenses	$	621,159		$	624,528
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations	(9,969)			(12,494)
EDC related liability valuation increase	23,441			8,602
Non-GAAP operating expenses	$	634,631		$	620,636
U.S. GAAP operating income	$	1,479,353		$	1,192,097
Non-GAAP operating income	$	1,459,375		$	1,194,274
U.S. GAAP operating income as percent of revenue	31.9		%	29.4		%
Non-GAAP operating income as a percent of revenue	31.5		%	29.4		%

Lam Research Corporation Contact:

Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com

XML

Cover page	Jul. 27, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 27, 2022
Entity Registrant Name	LAM RESEARCH CORPORATION
Entity Incorporation, State or Country Code	DE
Entity File Number	0-12933
Entity Tax Identification Number	94-2634797
Entity Address, Address Line One	4650 Cushing Parkway
Entity Address, City or Town	Fremont
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94538
City Area Code	510
Local Phone Number	572-0200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, Par Value $0.001 Per Share
Trading Symbol	LRCX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000707549