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LRCX - Lam Research Corp.
$628.25
26.15(4.34%)8:00:00 PM 5/26/2023
Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices and their wiring . The company also builds equipment for back-end wafer-level packaging , and for related manufacturing markets such as for microelectromechanical systems . Lam Research was founded in 1980 by Dr. David K. Lam and is headquartered in Fremont, California, in the Silicon Valley. As of 2018, it was the second largest manufacturer in the Bay Area, after Tesla.

Financials

Quarterly financials
(USD)Mar 2023Q/Q
Revenue3.9B-27%
Gross Profit1.6B-32%
Cost Of Revenue2.3B-22%
Operating Income942.3MM-44%
Operating Expenses663.4MM-5%
Net Income814MM-45%
R&D429.5MM-7%
G&A193.5MM-17%
Amortization13.8MM+13%
Interest Expense47.2MM+1%

Revenue Breakdowns

The revenue breakdowns above are extracted from this specific SEC Edgar 10-Q filling, with report date as 2022-12-25 and filed on 2023-01-30. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.

Highlights of Management Discussion and Risk Factors in 10-K/10-Q filling

Positive
1.
We believe we are in a strong position with our leadership and expertise in deposition, etch, and clean to facilitate some of the most significant innovations in semiconductor device manufacturing.
2.
Calendar year 2022 was a solid investment year in wafer fabrication equipment spending driven by robust secular demand for semiconductors and increasing complexity in manufacturing NAND, DRAM, and foundry logic devices.
3.
Over the longer term, we believe that secular demand for semiconductors combined with technology inflections in our industry, including 3D device scaling, multiple patterning, process flow, and advanced packaging chip integration, will drive sustainable growth and lead to an increase in the served addressable market for our products and services in the deposition, etch, and clean businesses.
4.
In the quarter-ended December 25, 2022, customer demand was strong and with improvement in supply chain constraints we were able to fulfill shipments of many critical parts required for revenue recognition.
5.
11 %Southeast Asia10 %11 %10 %9 %United States10 %6 %8 %6 %Europe6 %5 %6 %3 %Revenue for the December 2022 quarter increased 4.0% from the September 2022 quarter primarily due to improving supply chain conditions which allowed us to fulfill shipments of critical parts.
6.
Their continued success is part of our commitment to driving semiconductor breakthroughs that define the next generation.
7.
We have built a strong global presence with core competencies in areas like nanoscale applications enablement, chemistry, plasma and fluidics, advanced systems engineering and a broad range of operational disciplines.
8.
Total operating expenses$696,187 $638,995 Net income$1,468,507 $1,425,879 Diluted net income per share$10.77 $10.39 In the December 2022 quarter, revenue increased 4.0% compared to the September 2022 quarter, driven by an increase in systems revenue as a result of the improving supply chain environment.
9.
Demand from cloud computing, 5G, the Internet of Things, and other markets is driving the need for increasingly powerful and cost-efficient semiconductors.
10.
Although we have seen improvements in both our operations and those of our suppliers, we may continue to experience supply shortages as well as inflationary cost pressures in at least the near term.
11.
Our core technical competency is integrating hardware, process, materials, software, and process control, enabling results on the wafer.
12.
These trends are driving significant inflections in semiconductor manufacturing, such as the increasing importance of vertical scaling strategies like three-dimensional architecture as well as multiple patterning to enable shrinks.
Negative
1.
We expect these regulatory conditions, and the slowing economic environment, to negatively impact our financial results in calendar year 2023.
2.
The decrease in gross margin as a percentage of revenue in the December 2022 quarter compared to the September 2022 quarter was primarily a result of unfavorable customer and product mix.
3.
Risks and uncertainties related to the COVID-19 pandemic, supply chain challenges, and inflationary pressures may continue to negatively impact our revenue and gross margin.
4.
However, the demand environment, particularly in memory, has weakened, and as a result, we expect a reduction in wafer fabrication equipment spending in calendar year 2023.
5.
At the same time, there are growing technical challenges with traditional two-dimensional scaling.
6.
EndedDecember 25,2022September 25,2022December 25,2022December 26,2021(in thousands, except percentages)Gross margin$2,376,349 $2,336,835 $4,713,184 $3,954,670 Percent of revenue45.0 %46.1 %45.5 %46.4 %Gross margin as a percentage of revenue was lower in the December 2022 quarter compared to the September 2022 quarter primarily as a result of unfavorable customer and product mix.
7.
As a result of the expected reduced business levels, we announced a plan for the March 2023 quarter to reduce headcount by 1,300 employees, and we expect to incur charges of approximately $80.0 million in connection with the plan.
8.
However, uncertainty in the global economy and the semiconductor industry, as well as disruptions in credit markets, have in the past, and could in the future, impact customer demand for our products, as well as our ability to manage normal commercial relationships with our customers, suppliers, and creditors.
9.
The decrease in the memory market for the six months ended December 25, 2022 as compared to the same period in 2021, is primarily due to decreases in DRAM investments by our customers during this time period.
The management discussion contents above are extracted from this specific SEC Edgar 10-Q filling, with report date as 2022-12-25 and filed on 2023-01-30. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.
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