Lam Research Corporation
LAM RESEARCH CORP (Form: 8-K, Received: 07/25/2012 16:39:41)

 

 

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 25, 2012

 

 

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))

 

 

 


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


Item 2.02. Results of Operations and Financial Condition

On July 25, 2012, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 24, 2012, 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

(d) Exhibits

 

99.1    Press Release dated July 25, 2012 announcing financial results for the fiscal quarter ended June 24, 2012


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 25, 2012

 

LAM RESEARCH CORPORATION
By:     / S / E RNEST E. M ADDOCK
 

Ernest E. Maddock

Senior Vice President, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)


EXHIBIT INDEX

 

99.1    Press Release dated July 25, 2012 announcing financial results for the fiscal quarter ended June 24, 2012

Exhibit 99.1

FOR IMMEDIATE RELEASE

Lam Research Corporation Contact:

Shanye Hudson, Director, Investor Relations, phone: 510/572-4589, e-mail: shanye.hudson@lamresearch.com

Lam Research Corporation Announces Financial Results for the Quarter Ended June 24, 2012

FREMONT, Calif., July 25, 2012—Lam Research Corporation’s (NASDAQ: LRCX) highlights for the June 2012 quarter were:

Lam Research Corporation

Financial Highlights for the Quarter Ended June 24, 2012

(in thousands, except per share data and percentages)

 

     Combined
U.S. GAAP
    Combined
Non-GAAP
    Lam
Stand-alone
Non-GAAP
 

Revenue:

   $ 741,814      $ 741,814      $ 715,971   

Gross Margin:

     40.2     42.1     41.9

Operating Margin:

     4.4     13.2     14.7

Net Income:

   $ 18,069      $ 80,873      $ 88,164   

Diluted EPS:

   $ 0.13      $ 0.60      $ 0.75   

Lam Research Corporation today announced financial results for the quarter ended June 24, 2012. The Company completed the merger with Novellus Systems Inc. (Novellus) on June 4, 2012; results reflect twenty days of contributed financial performance resulting from that purchase, prior period comparable results represent Lam Stand-alone performance without exception. Revenue for the period was $741.8 million, gross margin was $298.2 million, or 40.2%, operating expenses were $265.5 million, and net income was $18.1 million, or $0.13 per diluted share, compared to revenue of $659.0 million, gross margin of $267.1 million, or 40.5%, operating expenses of $209.0 million, and net income of $45.6 million, or $0.38 per diluted share, for the March 2012 quarter. Shipments for the June 2012 quarter were $816 million compared to $713 million during the March 2012 quarter.

In addition to U.S. Generally Accepted Accounting Principles (GAAP) results, this commentary contains non-GAAP financial measures. The Company’s non-GAAP results for both the June 2012 and March 2012 quarters exclude the amortization of convertible note discounts and certain acquisition and integration-related costs. Additionally, the Company’s non-GAAP results for the June 2012 quarter exclude costs associated with rationalization of certain product configurations, amortization related to intangible assets acquired in the Novellus transaction, and acquisition-related inventory fair value impact. The non-GAAP results for the March 2012 quarter exclude certain costs associated with a customer bankruptcy filing. Management uses non-GAAP gross margin, operating income, operating expenses, operating margin, 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 the 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 web site at http://investor.lamresearch.com.

 

~more~

 

page 1 of 8


Lam Announces Financial Results for the June 2012 Quarter

Comparative highlights between the June 2012 quarter and March 2012 quarter are as follows:

 

     June 2012
Quarter
    March 2012
Quarter
 

Lam Stand-alone

    

Non-GAAP gross margin

   $ 300,253      $ 269,757   

Non-GAAP gross margin as a percentage of revenue

     41.9     40.9

Non-GAAP operating expenses

   $ 194,678      $ 196,753   

Non-GAAP net income

   $ 88,164      $ 60,621   

Non-GAAP net income per diluted share

   $ 0.75      $ 0.50   

Lam Stand-alone non-GAAP gross margin performance improved in the June 2012 quarter as compared to the March 2012 quarter due to favorable customer and product mix and improved factory and field utilization. Lam Stand-alone non-GAAP operating expenses decreased in the June 2012 quarter as compared to the March 2012 quarter due to reductions in employee-related benefit costs.

The geographic distribution of shipments and revenue during the June 2012 quarter is shown in the following table:

 

     Shipments     Revenue  

Region

   Combined     Lam
Stand-alone
    Combined     Lam
Stand-alone
 

North America

     15     14     13     12

Europe

     6     6     7     7

Japan

     7     8     7     7

Korea

     31     32     38     39

Taiwan

     29     28     24     25

Asia Pacific

     12     12     11     10

Cash and cash equivalents, short-term investments and restricted cash and investments balances increased to $3.0 billion at the end of the June 2012 quarter, compared to $2.6 billion at the end of the March 2012 quarter. This increase included the impact of $1.1 billion acquired in connection with the Novellus transaction, primarily offset by stock repurchases. Cash flows from operating activities were approximately $96.7 million during the June 2012 quarter. Deferred revenue and deferred profit balances at the end of the June 2012 quarter increased to $335.4 million and $164.8 million, respectively. Deferred revenue and deferred profit balances included $87.1 million and $21.1 million from Novellus related operations, respectively. Lam’s deferred revenue balance does not include shipments to Japanese customers, to whom title does not transfer until customer acceptance. Shipments to Japanese customers are classified as inventory at cost until the time of acceptance. The anticipated future revenue from shipments to Japanese customers was approximately $23.4 million as of June 24, 2012.

“Lam delivered solid financial performance in the June quarter, with sequential growth across our core product and service businesses,” said Martin Anstice, Lam’s president and chief executive officer. “The quarter also marked the closing of our acquisition of Novellus Systems, and integration is already underway. As we’ve shared over the past couple of quarters, this combination offers the potential for accelerated growth and we remain focused on aggressively executing our plans to achieve that potential.”

 

~more~

 

page 2 of 8


Lam Announces Financial Results for the June 2012 Quarter

Caution Regarding Forward-Looking Statements

Statements made in this press release that are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to the anticipated revenue from shipments to Japanese customers, the potential for accelerated growth arising from the acquisition of Novellus and the Company’s future plans for its business. Some factors that may affect these forward-looking statements include: business conditions in the consumer electronics industry, the semiconductor industry and the overall economy; the strength of the financial performance of our existing and prospective customers; the introduction of new and innovative technologies; the occurrence and pace of technology transitions and conversions; the actions of our competitors, consumers, semiconductor companies and key suppliers and subcontractors; and the success of research and development and sales and marketing programs. 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 by us with the Securities and Exchange Commission, including specifically our report on Form 10-K for the year ended June 26, 2011 and the reports on Form 10-Q for the three months ended September 25, 2011, December 25, 2011, and March 25, 2012. These uncertainties and changes 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 Corp. is a major supplier of innovative wafer fabrication equipment and services to the worldwide semiconductor industry. For more than 30 years, the Company has driven continuous improvements in chip performance, power consumption, and cost, contributing to the global proliferation of smartphones, computers, tablets, and other electronic products. Lam Research has been the leading supplier of high-throughput plasma etch equipment for more than a decade and expanded its product offerings in 2008 to include single-wafer clean systems. The Company added thin-film deposition and wafer surface preparation technologies to its product portfolio in 2012 with the acquisition of Novellus Systems, Inc. Headquartered in Fremont, Calif., Lam Research maintains a global network of service facilities throughout North America, Asia, and Europe to rapidly meet the needs of its global customer base. It is an S&P 500 ® company and NASDAQ-100 ® company whose common stock trades on the NASDAQ Global Select Market SM under the symbol LRCX. For more information, please visit http://www.lamresearch.com .

Consolidated Financial Tables Follow

###

 

page 3 of 8


Lam Announces Financial Results for the June 2012 Quarter

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data and percentages)

 

     Three Months Ended     Twelve Months Ended  
     June 24,
2012
    March 25,
2012
    June 26,
2011
    June 24,
2012
    June 26,
2011
 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (1)  

Total revenue

   $ 741,814      $ 658,961      $ 752,018      $ 2,665,192      $ 3,237,693   

Cost of goods sold

     443,601        391,814        413,564        1,581,982        1,740,461   

Cost of goods sold—restructuring and impairments

     —          —          —          (859     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs of goods sold

     443,601        391,814        413,564        1,581,123        1,740,461   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     298,213        267,147        338,454        1,084,069        1,497,232   

Gross margin as a percent of revenue

     40.2     40.5     45.0     40.7     46.2

Research and development

     124,528        113,448        99,583        444,559        373,293   

Selling, general and administrative

     141,015        95,581        79,938        400,052        308,075   

Restructuring and impairments

     —          —          16,742        1,725        11,579   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     265,543        209,029        196,263        846,336        692,947   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     32,670        58,118        142,191        237,733        804,285   

Operating margin as a percent of revenue

     4.4     8.8     18.9     8.9     24.8

Other income (expense), net

     (9,889     (3,568     (5,131     (33,315     (3,409
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     22,781        54,550        137,060        204,418        800,876   

Income tax expense

     4,712        8,946        11,132        35,695        77,128   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 18,069      $ 45,604      $ 125,928      $ 168,723      $ 723,748   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share:

          

Basic net income per share

   $ 0.13      $ 0.38      $ 1.02      $ 1.36      $ 5.86   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share

   $ 0.13      $ 0.38      $ 1.01      $ 1.35      $ 5.79   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Number of shares used in per share calculations:

          

Basic

     133,997        119,841        123,863        124,176        123,529   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     135,842        120,956        125,086        125,233        125,019   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Derived from audited financial statements

 

page 4 of 8


Lam Announces Financial Results for the June 2012 Quarter

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     June 24,
2012
     March 25,
2012
     June 26,
2011
 
     (unaudited)      (unaudited)      (1)  

ASSETS

        

Cash and cash equivalents

   $ 1,564,752       $ 1,410,267       $ 1,492,132   

Short-term investments

     1,297,931         993,696         630,115   

Accounts receivable, net

     765,818         471,776         590,568   

Inventories

     632,853         376,126         396,607   

Deferred income taxes

     47,782         78,719         78,435   

Other current assets

     105,973         93,325         85,408   
  

 

 

    

 

 

    

 

 

 

Total current assets

     4,415,109         3,423,909         3,273,265   

Property and equipment, net

     584,596         279,955         270,458   

Restricted cash and investments

     166,335         165,220         165,256   

Deferred income taxes

     —           —           3,892   

Goodwill and intangible assets

     2,686,730         203,276         216,616   

Other assets

     151,882         120,903         124,380   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 8,004,652       $ 4,193,263       $ 4,053,867   
  

 

 

    

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

        

Current liabilities

   $ 1,426,928       $ 651,655       $ 680,759   
  

 

 

    

 

 

    

 

 

 

Long-term debt and capital leases

   $ 761,783       $ 755,427       $ 738,488   

Income taxes payable

     274,240         115,570         113,582   

Other long-term liabilities

     219,577         61,469         51,193   
  

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 2,682,528       $ 1,584,121       $ 1,584,022   
  

 

 

    

 

 

    

 

 

 

Senior convertible notes

     190,343         —           —     

Stockholders’ equity

     5,131,781         2,609,142         2,469,845   
  

 

 

    

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 8,004,652       $ 4,193,263       $ 4,053,867   
  

 

 

    

 

 

    

 

 

 

 

(1) Derived from audited financial statements

 

page 5 of 8


Lam Announces Financial Results for the June 2012 Quarter

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Three Months Ended     Twelve Months Ended  
     June 24,
2012
    March 25,
2012
    June 26,
2011
    June 24,
2012
    June 26,
2011
 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (1)  

CASH FLOWS FROM OPERATING ACTIVITIES:

          

Net income

   $ 18,069      $ 45,604      $ 125,928      $ 168,723      $ 723,748   

Adjustments to reconcile net income to net cash provided by operating activities:

          

Depreciation and amortization

     34,576        22,517        19,972        100,825        74,759   

Deferred income taxes

     39,356        3,723        (6,166     42,446        (10,721

Restructuring charges, net

     —          —          16,742        866        11,579   

Equity-based compensation expense

     29,174        16,417        14,788        81,559        53,012   

Income tax benefit on equity-based compensation plans

     1,429        (1,048     9,283        1,510        28,775   

Excess tax benefit on equity-based compensation plans

     (394     (137     (8,184     (2,686     (23,290

Impairment of investment

     —          —          —          1,724        —     

Amortization of convertible note discount

     7,014        6,750        3,554        27,028        3,554   

Other, net

     7,206        1,165        477        10,877        (2,341

Changes in operating asset and liabilities:

     (39,715     51,406        21,714        66,156        21,953   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     96,715        146,397        198,108        499,028        881,028   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

          

Capital expenditures and intangible assets

     (36,880     (27,978     (34,571     (107,272     (127,495

Cash acquired in business acquisition

     418,681        —          —          418,681        —     

Purchase of other investments

     —          —          —          —          (417

Net sales/maturities (purchases) of available-for-sale securities

     329,689        (282,225     (316,789     (41,989     (353,523

Purchase of equity method investment

     —          —          —          (10,740     —     

Receipt of loan payments

     —          —          —          8,375        —     

Proceeds from sale of assets

     —          —          —          2,677        1,544   

Transfer of restricted cash and investments

     (29     3        (8     (6     (22
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) investing activities

     711,461        (310,200     (351,368     269,726        (479,913
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

          

Principal payments on long-term debt and capital lease obligations

     (1,101     (1,024     (81     (5,265     (4,530

Net proceeds from issuance of long-term debt

     —          —          882,831        —          882,831   

Proceeds from sale of warrants

     —          —          133,830        —          133,830   

Purchase of convertible note hedge

     —          —          (181,125     —          (181,125

Excess tax benefit on equity-based compensation plans

     394        137        8,184        2,686        23,290   

Treasury stock purchases

     (661,059     (18,909     (53,753     (772,663     (211,316

Net cash received in settlement of (paid in advance for) stock repurchase contracts

     —          79,189        (99,589     55,194        (149,589

Reissuances of treasury stock

     8,765        7,902        7,518        25,525        21,194   

Proceeds from issuance of common stock

     —          301        2,179        1,776        12,401   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     (653,001     67,596        699,994        (692,747     526,986   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash

     (690     (454     2,688        (3,387     18,264   

Net increase (decrease) in cash and cash equivalents

     154,485        (96,661     549,422        72,620        946,365   

Cash and cash equivalents at beginning of period

     1,410,267        1,506,928        942,710        1,492,132        545,767   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,564,752      $ 1,410,267      $ 1,492,132      $ 1,564,752      $ 1,492,132   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Derived from audited financial statements

 

page 6 of 8


Lam Announces Financial Results for the June 2012 Quarter

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

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended     Three Months Ended  
     June 24,
2012
    March 25,
2012
 

U.S. GAAP net income

   $ 18,069      $ 45,604   

Pre-tax non-GAAP items:

    

Costs associated with rationalization of certain product configurations—cost of goods sold

     4,045        —     

Amortization related to intangible assets acquired in Novellus transaction—cost of goods sold

     4,540        —     

Acquisition-related inventory fair value impact—cost of goods sold

     5,864        —     

Costs associated with customer bankruptcy filing—cost of goods sold

     —          2,610   

Acquisition-related costs—operating expenses

     37,374        3,195   

Integration costs—operating expenses

     7,293        8,441   

Amortization related to intangible assets acquired in Novellus transaction—operating expenses

     4,256        —     

Costs associated with rationalization of certain product configurations—operating expenses

     1,850        —     

Bad debt and other expenses associated with customer bankruptcy filing—operating expenses

     —          640   

Amortization of convertible note discount, Lam notes—other income (expense), net

     6,830        6,750   

Amortization of convertible note discount, Novellus assumed notes—other income (expense), net

     184        —     

Acquisition-related costs—other income (expense), net

     2,300        —     

Net tax benefit on non-GAAP items

     (11,732     (6,619
  

 

 

   

 

 

 

Non-GAAP net income

   $ 80,873      $ 60,621   
  

 

 

   

 

 

 

Non-GAAP net income per diluted share

   $ 0.60      $ 0.50   
  

 

 

   

 

 

 

Number of shares used for diluted per share calculation

     135,842        120,956   

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     Three Months Ended  
     June 24,
2012
    March 25,
2012
 

U.S. GAAP gross margin

   $ 298,213      $ 267,147   

Pre-tax non-GAAP items:

    

Costs associated with rationalization of certain product configurations—cost of goods sold

     4,045        —     

Amortization related to intangible assets acquired in Novellus transaction—cost of goods sold

     4,540        —     

Acquisition-related inventory fair value impact—cost of goods sold

     5,864        —     

Costs associated with customer bankruptcy filing—cost of goods sold

     —          2,610   
  

 

 

   

 

 

 

Non-GAAP gross margin

   $ 312,662      $ 269,757   
  

 

 

   

 

 

 

U.S. GAAP gross margin as a percentage of revenue

     40.2     40.5

Non-GAAP gross margin as a percentage of revenue

     42.1     40.9

U.S. GAAP operating expenses

   $ 265,543      $ 209,029   

Pre-tax non-GAAP items:

    

Acquisition-related costs—operating expenses

     (37,374     (3,195

Integration costs—operating expenses

     (7,293     (8,441

Amortization related to intangible assets acquired in Novellus transaction—operating expenses

     (4,256     —     

Costs associated with rationalization of certain product configurations—operating expenses

     (1,850     —     

Bad debt and other expenses associated with customer bankruptcy filing—operating expenses

     —          (640
  

 

 

   

 

 

 

Non-GAAP operating expenses

   $ 214,770      $ 196,753   
  

 

 

   

 

 

 

Non-GAAP operating income

   $ 97,892      $ 73,004   
  

 

 

   

 

 

 

Non-GAAP operating margin as a percent of revenue

     13.2     11.1

 

page 7 of 8


Lam Announces Financial Results for the June 2012 Quarter

Reconciliation of U.S. GAAP Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net

(in thousands)

(unaudited)

 

     Three Months Ended  
     June 24,
2012
    March 25,
2012
 

U.S. GAAP other income (expense), net

   $ (9,889   $ (3,568

Pre-tax non-GAAP items:

    

Amortization of convertible note discount, Lam notes

     6,830        6,750   

Amortization of convertible note discount, Novellus assumed notes

     184        —     

Acquisition-related costs

     2,300        —     
  

 

 

   

 

 

 

Non-GAAP other income (expense), net

   $ (575   $ 3,182   
  

 

 

   

 

 

 

Reconciliation of Combined Non-GAAP Statement of Operations to Lam Stand-alone Non-GAAP Statement of Operations

Three Months Ended June 24, 2012

(in thousands, except per share data and percentages)

(unaudited)

 

     Combined
Non-GAAP
    Less:
Non-GAAP  Results
Attributable to Novellus
    Lam
Stand-alone

Non-GAAP
 

Revenue

   $ 741,814      $ 25,843      $ 715,971   

Cost of goods sold

     429,152        13,434        415,718   
  

 

 

   

 

 

   

 

 

 

Gross margin

     312,662        12,409        300,253   

Gross margin as a percent of revenue

     42.1       41.9

Total operating expenses

     214,770        20,092        194,678   
  

 

 

   

 

 

   

 

 

 

Operating income (loss)

     97,892        (7,683     105,575   

Operating margin as a percent of revenue

     13.2       14.7

Other income (expense), net

     (575     (572     (3
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     97,317        (8,255     105,572   

Income tax expense (benefit)

     16,444        (964     17,408   
  

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 80,873      $ (7,291   $ 88,164   
  

 

 

   

 

 

   

 

 

 

Net income per share:

      

Basic net income per share

   $ 0.60        $ 0.76   
  

 

 

     

 

 

 

Diluted net income per share

   $ 0.60        $ 0.75   
  

 

 

     

 

 

 

Number of shares used in per share calculations:

      

Basic

     133,997        18,167 (1)       115,830   
  

 

 

   

 

 

   

 

 

 

Diluted

     135,842        19,027 (2)       116,815   
  

 

 

   

 

 

   

 

 

 

 

(1) Excludes shares issued as acquisition consideration and acquired stock compensation award activity subsequent to acquisition
(2) Excludes dilutive impact of assumed Novellus stock compensation awards and convertible note

 

page 8 of 8