-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Mk8YINzgk9Xa78Zvx3kn/kSuMfrWg7Mq34yNNher9YHKn1szukHHLIwLhWaf41Iw OYEv8ozYoj4LsO8RAleFNg== 0000950134-08-007184.txt : 20080423 0000950134-08-007184.hdr.sgml : 20080423 20080423170835 ACCESSION NUMBER: 0000950134-08-007184 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080423 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080423 DATE AS OF CHANGE: 20080423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAM RESEARCH CORP CENTRAL INDEX KEY: 0000707549 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 942634797 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12933 FILM NUMBER: 08772365 BUSINESS ADDRESS: STREET 1: 4650 CUSHING BLVD CITY: FREMONT STATE: CA ZIP: 94538 BUSINESS PHONE: 5106590200 MAIL ADDRESS: STREET 1: 4650 CUSHING PARKWAY CITY: FREMONT STATE: CA ZIP: 94538 8-K 1 f40085e8vk.htm FORM 8-K e8vk
Table of Contents

 
 
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): April 23, 2008
LAM RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or Other Jurisdiction of Incorporation)
     
0-12933
(Commission File Number)
  94-2634797
(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):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1


Table of Contents

Item 2.02.   Results of Operations and Financial Condition
On April 23, 2008, Lam Research Corporation (the “Company”) issued a press release announcing its earnings for the fiscal quarter ended March 30, 2008, the text of which is attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit, 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, or otherwise subject to the liabilities under that Section. Furthermore, the information in the Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.
Item 9.01.   Financial Statements and Exhibits
(c) Exhibits
  99.1   Press Release dated April 23, 2008 announcing earnings for the fiscal quarter ended March 30, 2008

 


Table of Contents

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: April 23, 2008
         
  LAM RESEARCH CORPORATION
 
 
  By:   /s/ Martin B. Anstice    
    Martin B. Anstice   
    Senior Vice President,
Chief Financial Officer, and
Chief Accounting Officer
 
 

 


Table of Contents

         
EXHIBIT INDEX
99.1   Press Release dated April 23, 2008 announcing earnings for the fiscal quarter ended March 30, 2008

 

EX-99.1 2 f40085exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
FOR IMMEDIATE RELEASE
Lam Research Corporation Contact:
Carol Raeburn, Senior Director, Investor Relations, phone: 510/572-4450, e-mail:
carol.raeburn@lamresearch.com
Lam Research Corporation Announces Earnings for the Quarter Ended March 30, 2008
FREMONT, Calif., April 23, 2008 —Lam Research Corporation (NASDAQ: LRCX) highlights for the March 2008 quarter were:
                                 
(in thousands, except per share data and percentages)
Revenue:
          $ 613,810                  
 
   
Operating Margin:
  U.S. GAAP:     14.1 %   Ongoing:     23.6 %
 
   
Net Income:
  U.S. GAAP:   $ 103,524     Ongoing:   $ 109,827  
 
   
Diluted EPS:
  U.S. GAAP:   $ 0.82     Ongoing:   $ 0.87  
Lam Research Corporation today announced earnings for the quarter ended March 30, 2008. Revenue for the period was $613.8 million, gross margin was $287.2 million and net income was $103.5 million, or $0.82 per diluted share, compared to revenue of $610.3 million, gross margin of $307.7 million and net income of $115.1 million, or $0.91 per diluted share for the December 2007 quarter.
The earnings of the SEZ Group, after the March 11, 2008 acquisition date, have been consolidated into the March 2008 quarter results. The Company has decided to adopt an acceptance-based revenue recognition model for the SEZ Group, now known as the Spin Clean Division, which has the effect of deferring almost all of the post-acquisition March quarter Spin Clean Division revenues and the related cost of sales to a future period. Accordingly, Spin Clean Division revenues were limited to $1.7 million, and after operating expenses and an in-process research and development write-off related to the acquisition, the resulting U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) loss was $5.6 million after taxes.
The Company’s ongoing results for the March 2008 quarter exclude certain costs related to the recent acquisition of the SEZ Group, including the foreign currency gains associated with the acquisition and the one-time charge for in-process research and development expense. In addition, the Company’s ongoing results for the March 2008 and December 2007 quarters exclude the costs associated with its voluntary internal stock option review. Management uses the presentation of ongoing gross margin, ongoing operating income, ongoing net income, and ongoing diluted earnings per share to evaluate the Company’s operating and financial results. The Company believes the presentation of ongoing results is useful to investors for analyzing ongoing business trends and comparing performance to prior periods, and enhances the investor’s ability to view the Company’s results from management’s perspective. A table presenting a reconciliation of ongoing results to results under U.S. GAAP is included at the end of this press release and on the Company’s web site.
Ongoing net income was $109.8 million, or $0.87 per diluted share in the March 2008 quarter compared to ongoing net income of $118.9 million, or $0.94 per diluted share, for the December 2007 quarter. Ongoing gross margin for the March 2008 quarter slightly exceeded the Company’s expectations and was $293.6 million or 47.8% compared to ongoing gross margin of $307.7 million, or 50.4%, for the December 2007 quarter. The majority of the sequential decline was due to unfavorable customer and product mix. Ongoing operating expenses of $148.9 million for the March 2008 quarter were higher than the December 2007 quarter of $140.0 million, primarily due to the inclusion of the Spin Clean Division operating expenses and to a lesser extent higher employee compensation costs at the Company.
~more~

 


 

     
Lam Announces Earnings for the March 2008 Quarter   Page 2 of 6
The geographic distribution of shipments and revenue during the March 2008 quarter is shown in the following table:
                 
Region   Shipments   Revenue
North America
    15 %     18 %
Europe
    7 %     8 %
Japan
    17 %     17 %
Korea
    28 %     20 %
Asia Pacific
    33 %     37 %
Cash and cash equivalents, short-term investments and restricted cash and investments balances were $1.0 billion at the end of the March 2008 quarter, including approximately $0.2 billion attributed to the Spin Clean Division. Deferred revenue and deferred profit balances were $270.1 million and $162.1 million, respectively. At the end of the March 2008 period, the anticipated future revenue value of orders shipped to Japanese customers that is not recorded as deferred revenue was approximately $43 million.
“Lam’s March quarter performance met or slightly exceeded our expectations for shipments, revenues, gross margins and operating income. The headwind of the current economic environment creates challenges for us and many other semiconductor equipment manufacturers in the upcoming quarters, but we believe that our intense focus on creating yield enabling solutions in etch and clean coupled with our investment in long-term new market opportunities, has Lam Research well positioned to resume a strong growth trajectory when our customers recommence increased wafer fabrication equipment spending,” said Steve Newberry, Lam Research’s president and chief executive officer.
“Our acquisition of the SEZ Group is a significant milestone on our path to become a multi-market, $4+ billion dollar revenue company targeted for calendar year 2010. I am encouraged by the enthusiasm of the Clean Group employees in their initial collaboration efforts, particularly at the customer interface, where we now offer the broadest set of single-wafer wet clean solutions. Our partnership in R&D, where the sharing of process and hardware knowledge offers exciting opportunities, is already extremely active. Taken together, these elements reinforce our belief in the strategic merit of the acquisition. I want to convey appreciation to all employees for their continued hard work in facilitating the next leg of growth for Lam Research,” Newberry concluded.
~more~

 


 

     
Lam Announces Earnings for the March 2008 Quarter   Page 3 of 6
Statements made in this press release which are not statements 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, but are not limited, to the challenges we will face in the current economic environment, our focus on creating yield enabling solutions for our customers, our continued commitment to investing in long-term opportunities, the value of the acquisition of the SEZ Group, our progress toward a multi-market, $4+ billion revenue company, the opportunities presented by the acquisition of SEZ, our belief in the strategic value of the SEZ acquisition, the Company’s continuation on its growth trajectory, the resumption by customers of increased wafer fabrication equipment spending, the future revenue value of orders shipped to Japanese customers, and our ability to successfully integrate the SEZ Spin Clean Division. Some factors that may affect these forward-looking statements include: changing business conditions in the semiconductor industry and the overall economy and the efficacy of our plans for reacting to those changes, changing customer demands, success of our competitors’ strategies including their development of new technologies, and the technical challenges presented by our new products. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including specifically the report on Form 10-K for the year ended June 24, 2007, and Form 10-Q for the quarter ended December 23, 2007, which could cause actual results to vary from expectations. The Company undertakes no obligation to update the information or statements made in this press release.
Lam Research Corporation is a major provider of wafer fabrication equipment and services to the world’s semiconductor industry. Lam’s common stock trades on The NASDAQ Global Select Market SM under the symbol LRCX. Lam is a NASDAQ-100 ® company. The Company’s World Wide Web address is http://www.lamresearch.com.
Consolidated Financial Tables Follow
###

 


 

     
Lam Announces Earnings for the March 2008 Quarter   Page 4 of 6
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)
                                         
    Three Months Ended     Nine Months Ended  
    March 30,     December 23,     March 25,     March 30,     March 25,  
    2008     2007     2007     2008     2007  
Total revenue
  $ 613,810     $ 610,320     $ 650,270     $ 1,908,751     $ 1,888,057  
Cost of goods sold
    320,201       302,659       324,025       963,594       925,732  
Cost of goods sold - 409A expense
    6,401                   6,401        
 
                             
Total costs of goods sold
    326,602       302,659       324,025       969,995       925,732  
 
                             
Gross margin
    287,208       307,661       326,245       938,756       962,325  
Gross margin as a percent of revenue
    46.8 %     50.4 %     50.2 %     49.2 %     51.0 %
Research and development
    80,576       80,243       75,064       237,107       205,747  
Selling, general and administrative
    74,491       66,084       62,208       210,288       178,267  
409A expense
    43,784                   43,784        
In-process research and development
    2,074                   2,074        
 
                             
Total operating expenses
    200,925       146,327       137,272       493,253       384,014  
 
                             
Operating income
    86,283       161,334       188,973       445,503       578,311  
Operating margin as a percent of revenue
    14.1 %     26.4 %     29.1 %     23.3 %     30.6 %
Other income (expense), net
    49,605       (37 )     14,751       57,201       58,191  
 
                             
Income before income taxes
    135,888       161,297       203,724       502,704       636,502  
Income tax expense
    32,364       46,238       38,983       135,533       120,917  
 
                             
Net income
  $ 103,524     $ 115,059     $ 164,741     $ 367,171     $ 515,585  
 
                             
Net income per share:
                                       
Basic net income per share
  $ 0.83     $ 0.92     $ 1.17     $ 2.95     $ 3.64  
 
                             
Diluted net income per share
  $ 0.82     $ 0.91     $ 1.15     $ 2.90     $ 3.57  
 
                             
Number of shares used in per share calculations:
                                       
Basic
    124,768       124,685       140,423       124,509       141,516  
 
                             
Diluted
    126,549       126,653       143,052       126,531       144,378  
 
                             

 


 

     
Lam Announces Earnings for the March 2008 Quarter   Page 5 of 6
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                 
    March 30,     June 24,  
    2008     2007  
    (unaudited)     (1)  
ASSETS
               
Cash and cash equivalents
  $ 552,353     $ 573,967  
Short-term investments
    290,542       96,724  
Accounts receivable, net
    599,719       410,013  
Inventories
    305,802       235,431  
Other current assets
    142,267       100,226  
 
           
Total current assets
    1,890,683       1,416,361  
Property and equipment, net
    231,748       113,725  
Restricted cash and investments
    169,841       360,038  
Deferred income taxes
    35,164       27,414  
Goodwill
    264,092       59,741  
Intangible assets, net
    127,817       70,909  
Other assets
    74,919       53,417  
 
           
Total assets
  $ 2,794,264     $ 2,101,605  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Current liabilities
  $ 712,542     $ 672,798  
 
           
 
               
Long-term debt
  $ 277,950     $ 250,000  
Income taxes payable
    85,501        
Other long-term liabilities
    44,940       2,487  
Minority interests
    9,274        
Stockholders’ equity
    1,664,057       1,176,320  
 
           
Total liabilities and stockholders’ equity
  $ 2,794,264     $ 2,101,605  
 
           
 
1   Derived from audited financial statements

 


 

     
Lam Announces Earnings for the March 2008 Quarter   Page 6 of 6
Reconciliation of U.S. GAAP Net Income to Ongoing Net Income
(in thousands, except per share data and percentages)
                 
    Three Months Ended     Three Months Ended  
    March 30,     December 23,  
    2008     2007  
U.S. GAAP net income
  $ 103,524     $ 115,059  
Pre-tax expense incurred to satisfy 409A liabilities — cost of goods sold
    6,401        
Pre-tax expense incurred to satisfy 409A liabilities — operating expenses
    43,784        
Pre-tax legal and accounting expenses incurred as a result of the voluntary internal stock option review — operating expenses
    6,190       6,361  
In-process research and development for SEZ acquisition — operating expenses
    2,074        
Pre-tax foreign exchange gain associated with the acquisition of SEZ shares — other income (expense), net
    (49,285 )      
Net tax benefit on ongoing items
    (2,861 )     (2,567 )
 
           
Ongoing net income
  $ 109,827     $ 118,853  
 
           
Ongoing net income per diluted share
  $ 0.87     $ 0.94  
 
           
Number of shares used for diluted per share calculation
    126,549       126,653  
U.S. GAAP income tax rate
    23.8 %     28.7 %
Ongoing income tax rate
    24.3 %     29.1 %
Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Ongoing Gross Margin,
Operating Expenses and Operating Income
(in thousands, except percentages)
                 
    Three Months Ended     Three Months Ended  
    March 30,     December 23,  
    2008     2007  
U.S. GAAP gross margin
  $ 287,208     $ 307,661  
Pre-tax expense incurred to satisfy 409A liabilities — cost of goods sold
    6,401        
 
           
Ongoing gross margin
  $ 293,609     $ 307,661  
       
U.S. GAAP gross margin as a percent of revenue
    46.8 %     50.4 %
Ongoing gross margin as a percent of revenue
    47.8 %     50.4 %
U.S. GAAP operating expenses
  $ 200,925     $ 146,327  
Pre-tax expense incurred to satisfy 409A liabilities — operating expenses
    (43,784 )      
Pre-tax legal and accounting expenses incurred as a result of the voluntary internal stock option review — operating expenses
    (6,190 )     (6,361 )
In-process research and development for SEZ acquisition
    (2,074 )      
 
           
Ongoing operating expenses
  $ 148,877     $ 139,966  
 
           
Ongoing operating income
  $ 144,732     $ 167,695  
 
           
Ongoing operating income as a percent of revenue
    23.6 %     27.5 %

 

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