EX-99.1 2 f29184exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
FOR IMMEDIATE RELEASE
Lam Research Corporation Contact:
Julie Cimino, Investor Relations, phone: 510/572-1615, e-mail: julie.cimino@lamresearch.com
Lam Research Corporation Announces Earnings for the Quarter Ended
March 25, 2007
FREMONT, Calif., April 12, 2007 —Lam Research Corporation (NASDAQ: LRCX) highlights for the March 2007 quarter were:
         
• Revenue:
   $ 650.3  million
• Operating Margin:
     29.1 %
• Net Income:
   $ 164.7  million
• Diluted EPS:
   $ 1.15  
Lam Research Corporation today announced earnings for the quarter ended March 25, 2007. Revenue for the period was $650.3 million and net income was $164.7 million, or $1.15 per diluted share, compared to revenue of $633.4 million and net income of $167.3 million, or $1.15 per diluted share for the December 2006 quarter.
Gross margin of $326.2 million for the March 2007 quarter met expectations at 50.2 percent compared to gross margin of $322.9 million, or 51.0 percent, for the December 2006 quarter. Operating expenses increased as planned during the quarter to $137.3 million compared to operating expenses of $128.4 million for the December 2006 quarter, including increased equity-based compensation expense as well as salary and benefits costs supporting the Company’s new product development and market share growth objectives.
~more~

 

 

Lam Announces Earnings for the March 2007 Quarter   Page 2 of 6
The geographic distribution of shipments and revenue during the March 2007 quarter is shown in the following table:
                 
Region   Shipments   Revenue
North America
     13 %     16 %
Europe
     8 %     7 %
Japan
     11 %     12 %
Korea
     36 %     28 %
Asia Pacific
     32 %     37 %
Cash and cash equivalents, short-term investments and restricted cash and investments balances were $1.5 billion at the end of March, and cash flows provided by operating activities were $151.4 million during the quarter. The Company repurchased approximately $239 million of its common stock during the quarter. Condensed Consolidated Statements of Cash Flows are included at the end of this press release. Deferred revenue and deferred profit balances were $277.0 million and $166.1 million, respectively. At the end of the period, the anticipated future revenue value of orders shipped to Japanese customers that are not recorded as deferred revenue was approximately $49 million.
“Lam Research delivered excellent operational and financial results in the March quarter,” said Steve Newberry, Lam Research’s president and chief executive officer.
“The company continues to leverage successfully both our etch market share gains and the efficiencies inherent in our business model. During the quarter we made significant progress in advancing our new product growth initiative, including product releases achieved for our 2300® Bevel Clean system, our 2300 Motif™ patterning system, and our Deep Silicon Etch MEMS offering. These accomplishments combined with the anticipated successful execution of our wet clean product roadmap will position Lam to serve a larger segment of the wafer fab equipment market that is benefiting from a favorable secular demand outlook for advanced integrated circuits,” Newberry concluded.
~more~

 

 

Lam Announces Earnings for the March 2007 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 future revenue value of orders shipped to Japanese customers, the continuation of our etch market share gains and efficiencies in our business model and our ability to leverage those gains and efficiencies successfully, the success of our wet clean product, and our future ability to serve a larger market segment. 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 25, 2006, and Form 10-Q for the quarter ended December 24, 2006, 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 MarketSM 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 2007 Quarter   Page 4 of 6
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
                                         
    Three Months Ended     Nine Months Ended  
    March 25,     December 24,     March 26,     March 25,     March 26,  
    2007     2006     2006     2007     2006  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Total revenue
   $ 650,270     $ 633,400     $ 437,423     $ 1,888,057     $ 1,116,575  
Cost of goods sold
     324,025       310,484       217,769       925,732       563,332  
 
                              
Gross margin
     326,245       322,916       219,654       962,325       553,243  
Gross margin as a percent of revenue
     50.2 %     51.0 %     50.2 %     51.0 %     49.5 %
Research and development
     75,064       69,060       61,083       205,747       168,067  
Selling, general and administrative
     62,208       59,351       48,303       178,267       138,317  
 
                              
Total operating expenses
     137,272       128,411       109,386       384,014       306,384  
Operating income
     188,973       194,505       110,268       578,311       246,859  
Operating margin as a percent of revenue
     29.1 %     30.7 %     25.2 %     30.6 %     22.1 %
Other income, net
     14,751       13,092       7,828       58,191       25,624  
 
                              
Income before income taxes
     203,724       207,597       118,096       636,502       272,483  
Income tax expense
     38,983       40,271       31,759       120,917       58,877  
 
                              
Net income
   $ 164,741     $ 167,326     $ 86,337     $ 515,585     $ 213,606  
 
                              
Net income per share:
                                        
Basic
   $ 1.17     $ 1.18     $ 0.62     $ 3.64     $ 1.55  
 
                              
Diluted
   $ 1.15     $ 1.15     $ 0.60     $ 3.57     $ 1.49  
 
                              
Number of shares used in per share calculations:
                                        
Basic
     140,423       142,306       140,122       141,516       137,703  
 
                              
Diluted
     143,052       145,346       144,846       144,378       143,298  
 
                              

 

 

Lam Announces Earnings for the March 2007 Quarter   Page 5 of 6
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                         
    March 25,     December 24,     June 25,  
    2007     2006     2006  
    (unaudited)     (unaudited)     (1)  
Assets:
                        
Cash and cash equivalents
   $ 494,807     $ 629,117     $ 910,815  
Short-term investments
     638,878       574,845       139,524  
Accounts receivable, net
     461,365       456,427       407,347  
Inventories
     228,435       212,299       168,714  
Other current assets
     120,883       83,968       79,969  
 
                  
Total current assets
     1,944,368       1,956,656       1,706,369  
Property and equipment, net
     107,388       97,034       49,893  
Restricted cash and investments
     360,038       415,038       470,038  
Goodwill
     55,892       55,892       —  
Intangible assets, net
     61,615       64,641       —  
Other assets
     80,569       90,445       87,044  
 
                  
Total assets
   $ 2,609,870     $ 2,679,706     $ 2,313,344  
 
                  
 
                        
Liabilities and stockholders’ equity:
                        
Current liabilities
   $ 642,871     $ 638,363     $ 566,226  
 
                  
 
                        
Long-term debt
   $ 250,000     $ 300,000     $ 350,000  
Other long-term liabilities
     821       833       969  
Stockholders’ equity
     1,716,178       1,740,510       1,396,149  
 
                  
Total liabilities and stockholders’ equity
   $ 2,609,870     $ 2,679,706     $ 2,313,344  
 
                  
 
(1)   Derived from audited financial statements.

 

 

Lam Announces Earnings for the March 2007 Quarter   Page 6 of 6
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                         
    Three Months Ended     Nine Months Ended  
    March 25,     December 24,     March 26,     March 25,     March 26,  
    2007     2006     2006     2007     2006  
CASH FLOWS FROM OPERATING ACTIVITIES:
                                        
Net income
   $ 164,741     $ 167,326     $ 86,337     $ 515,585     $ 213,606  
Adjustments to reconcile net income to net cash provided by operating activities:
                                        
Depreciation and amortization
     11,890       8,760       5,208       27,177       16,235  
Deferred income taxes
     (5,122 )     7,424       17,935       8,721       32,662  
Equity-based compensation
     10,873       6,664       6,029       23,788       17,319  
Income tax benefit on equity-based compensation plans
     27,577       20,367       —       49,816       —  
Excess tax benefit on equity-based compensation plans
     (19,191 )     (14,086 )     —       (34,541 )     —  
Other, net
     1,159       (1,551 )     (864 )     28       1,087  
Change in working capital accounts
     (40,526 )     (32,866 )     (5,010 )     (60,508 )     (12,488 )
 
                              
Net cash provided by operating activities
     151,401       162,038       109,635       530,066       268,421  
 
                              
 
                                        
CASH FLOWS FROM INVESTING ACTIVITIES:
                                        
Capital expenditures and intangible assets
     (18,777 )     (13,966 )     (6,447 )     (45,663 )     (16,141 )
Acquisition of Bullen Ultrasonics, Inc. assets
     —       (177,108 )     —       (177,108 )     —  
Transfer of restricted cash and investments
     55,000       55,000       —       110,000       —  
Net sales (purchases) of available-for-sale securities
     (63,149 )     (340,774 )     26,703       (494,846 )     92,492  
 
                              
Net cash (used for) provided by investing activities
     (26,926 )     (476,848 )     20,256       (607,617 )     76,351  
 
                              
 
                                        
CASH FLOWS FROM FINANCING ACTIVITIES:
                                        
Payments on long-term debt and capital lease
     (50,048 )     (50,028 )     (67 )     (100,120 )     (67 )
Excess tax benefit on equity-based compensation plans
     19,191       14,086       —       34,541       —  
Treasury stock purchases
     (239,012 )     (75,285 )     (73,602 )     (315,345 )     (214,209 )
Reissuances of treasury stock
     5,298       —       4,515       11,288       9,652  
Proceeds from issuance of common stock
     5,892       22,662       61,602       30,293       135,702  
 
                              
Net cash used for financing activities
     (258,679 )     (88,565 )     (7,552 )     (339,343 )     (68,922 )
 
                              
Effect of exchange rate changes on cash
     (106 )     1,144       1,724       886       (255 )
Net (decrease) increase in cash and cash equivalents
     (134,310 )     (402,231 )     124,063       (416,008 )     275,595  
Cash and cash equivalents at beginning of period
     629,117       1,031,348       633,782       910,815       482,250  
 
                              
Cash and cash equivalents at end of period
   $ 494,807     $ 629,117     $ 757,845     $ 494,807     $ 757,845