Document



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): January 23, 2019
  
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))
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
 
Item 8.01
 
Other Events
 
Item 9.01.
  
Financial Statements and Exhibits
 
SIGNATURES
 
EX-99.1
 
 
EX-99.2
 
 
 
 
 
 
 







 Item 2.02.
Results of Operations and Financial Condition
On January 23, 2019, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended December 23, 2018, 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 8.01.
Other Events

On January 23, 2019 the Company issued a press release announcing a $5 billion share repurchase authorization. A copy of the press release is attached as Exhibit 99.2 to this Form 8-K. The foregoing description of the share repurchase authorization is qualified in its entirety by reference to the full text of Exhibit 99.2 incorporated by reference in this Item 8.01.
.
 Item 9.01.
Financial Statements and Exhibits
(d) Exhibits
99.1
99.2







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:
January 23, 2019
 
LAM RESEARCH CORPORATION
 
 
 
(Registrant)
 
 
 
/s/ Douglas R. Bettinger
 
 
 
Douglas R. Bettinger
 
 
 
Executive Vice President, Chief Financial Officer
 
 
 
(Principal Financial Officer and Principal Accounting Officer)
 



Exhibit


Exhibit 99.1
FOR IMMEDIATE RELEASE        
Lam Research Corporation Contacts:
Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com
Lam Research Corporation Reports Financial Results for the Quarter Ended December 23, 2018
FREMONT, Calif., January 23, 2019 - Lam Research Corporation ( the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended December 23, 2018 (the “December 2018 quarter”).
Highlights for the December 2018 quarter were as follows:
Revenue of $2.52 billion.
U.S. GAAP gross margin of 45.4%, U.S. GAAP operating income as a percentage of revenue of 27.4%, and U.S. GAAP diluted EPS of $3.51.
Non-GAAP gross margin of 46.3%, non-GAAP operating income as a percentage of revenue of 28.8%, and non-GAAP diluted EPS of $3.87.
Key Financial Data for the Quarters Ended
December 23, 2018 and September 23, 2018
(in thousands, except per-share data, percentages, and basis points) 
U.S. GAAP
 
  
December 2018
 
September 2018
 
Change Q/Q
Revenue
  
$
2,522,673

 
$
2,330,691

 
+ 8%

Gross margin as percentage of revenue
  
45.4
%
 
45.4
%
 

Operating income as percentage of revenue
  
27.4
%
 
25.4
%
 
+ 200 bps

Diluted EPS
  
$
3.51

 
$
3.23

 
+ 9%

 
 
 
 
 
 
 
Non-GAAP
 
  
December 2018
 
September 2018
 
Change Q/Q
Revenue
  
$
2,522,673

 
$
2,330,691

 
+ 8%

Gross margin as percentage of revenue
  
46.3
%
 
46.4
%
 
- 10 bps

Operating income as percentage of revenue
  
28.8
%
 
27.0
%
 
+ 180 bps

Diluted EPS
  
$
3.87

 
$
3.36

 
+ 15%


U.S. GAAP Financial Results
For the December 2018 quarter, revenue was $2,523 million, gross margin was $1,145 million, or 45.4% of revenue, operating expenses were $455 million, operating income was 27.4% of revenue, and net income was $569 million, or $3.51 per diluted share on a U.S. GAAP basis. This compares to revenue of $2,331 million, gross margin of $1,058 million, or 45.4% of revenue, operating expenses of $466 million, operating income of 25.4% of revenue, and net income of $533 million, or $3.23 per diluted share, for the quarter ended September 23, 2018 (the “September 2018 quarter”).
Non-GAAP Financial Results
For the December 2018 quarter, non-GAAP gross margin was $1,167 million or 46.3% of revenue, non-GAAP operating expenses were $440 million, non-GAAP operating income was 28.8% of revenue, and non-GAAP net income was $628 million, or $3.87 per diluted share. This compares to non-GAAP gross margin of $1,081 million or 46.4% of revenue, non-GAAP operating expenses of $451 million, non-GAAP operating income of 27.0% of revenue, and non-GAAP net income of $555 million, or $3.36 per diluted share for the September 2018 quarter.
“Lam delivered solid results in the December quarter, and concluded the 2018 calendar year with record revenue and earnings per share performance,” said Timothy Archer, Lam Research’s President and Chief Executive Officer. “While near-term market trends reflect adjustments after a period of tremendous growth in semiconductor demand, I am confident that our focus on Deposition and Etch technology leadership as well as growth in our installed-base business positions us well for the long term.”








Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances remained steady at $3.9 billion at the end of the December 2018 quarter as compared to the end of the September 2018 quarter. Cash flow generated by operating activities during the December 2018 quarter of $642 million was primarily used for $360 million of repayments on short-term borrowings; $168 million of dividends paid to stockholders; and $106 million of capital expenditures.

Deferred revenue and deferred profit at the end of the December 2018 quarter decreased to $493 million and $432 million, respectively, as compared to $626 million and $542 million, respectively, at the end of the September 2018 quarter. Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. 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 $262 million as of December 23, 2018 and $454 million as of September 23, 2018.
Geographic Distribution
The geographic distribution of revenue during the December 2018 quarter is shown in the following table:
Region
Revenue
Japan
27%
Korea
25%
Taiwan
17%
China
14%
Southeast Asia
7%
United States
5%
Europe
5%
Outlook
For the March 2019 quarter, Lam is providing the following guidance:
 
U.S. GAAP
 
Reconciling Items
 
Non-GAAP
Revenue
$2.4 Billion
+/-
$150 Million
 
 
$2.4 Billion
+/-
$150 Million
Gross margin as a percentage of revenue
43.6%
+/-
1%
 
$
22

Million
 
44.5%
+/-
1%
Operating income as a percentage of revenue
23.6%
+/-
1%
 
$
34

Million
 
25.0%
+/-
1%
Net income per diluted share
$3.21
+/-
$0.20
 
$
30

Million
 
$3.40
+/-
$0.20
Diluted share count
159 Million
 
 
159 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 transactions that may be completed 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, $22 million.
Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $34 million.
Earnings per share - amortization related to intangible assets acquired though business combinations, $34 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($5 million); totaling $30 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 December 2018 and September 2018 quarters exclude amortization related to intangible assets acquired through business combinations, restructuring charges, amortization of note discounts, tax benefit of non-GAAP items, and estimated income tax impacts associated with U.S. tax reform. Additionally, the December 2018 quarter non-GAAP results exclude income tax benefit on the conclusion of tax matters related to a prior business combination.
Management uses non-GAAP gross margin, operating expense, operating income, 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 http://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: the estimated future revenue from shipments to customers in Japan; the timing and amount of revenue and profit earned from any booked deferred revenue and profit; market trends and semiconductor demand; our technology leadership; our installed base growth; our long term positioning; technology demand trends; the legal and business factors that may affect our future tax rate; our engineering capabilities; our commitment to customer success; our continued ability to accelerate innovation and enhance device performance; and our guidance for revenue, gross margin, operating income (both as a dollar value and a percentage of revenue), net income or earnings per diluted share, and diluted share count. Some factors that may affect these forward-looking statements include: business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; and the actions of our customers and competitors may be inconsistent with our expectations, 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 24, 2018 and our quarterly report on Form 10-Q for the fiscal quarter ended September 23, 2018. 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.
About Lam Research
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. As a trusted, collaborative partner to the world’s leading semiconductor companies, we combine superior systems engineering capability, technology leadership, and unwavering commitment to customer success to accelerate innovation through enhanced device performance. In fact, today, nearly every advanced chip is built with Lam technology. 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)
(unaudited) 
 
Three Months Ended
 
Six Months Ended
 
December 23,
2018
 
September 23,
2018
 
December 24,
2017
 
December 23,
2018
 
December 24,
2017
Revenue
$
2,522,673

 
$
2,330,691

 
$
2,580,815

 
$
4,853,364

 
$
5,058,955

Cost of goods sold
1,377,640

 
1,272,493

 
1,375,248

 
2,650,133

 
2,704,045

Gross margin
1,145,033

 
1,058,198

 
1,205,567

 
2,203,231

 
2,354,910

Gross margin as a percent of revenue
45.4
%
 
45.4
%
 
46.7
%
 
45.4
%
 
46.5
%
Research and development
285,556

 
291,672

 
281,311

 
577,228

 
556,389

Selling, general and administrative
169,098

 
174,775

 
186,885

 
343,873

 
367,928

Total operating expenses
454,654

 
466,447

 
468,196

 
921,101

 
924,317

Operating income
690,379

 
591,751

 
737,371

 
1,282,130

 
1,430,593

Operating income as a percent of revenue
27.4
%
 
25.4
%
 
28.6
%
 
26.4
%
 
28.3
%
Other expense, net
(30,649
)
 
(377
)
 
(3,152
)
 
(31,026
)
 
(8,654
)
Income before income taxes
659,730

 
591,374

 
734,219

 
1,251,104

 
1,421,939

Income tax expense
(90,875
)
 
(58,014
)
 
(744,174
)
 
(148,889
)
 
(841,204
)
Net income (loss)
$
568,855

 
$
533,360

 
$
(9,955
)
 
$
1,102,215

 
$
580,735

Net income (loss) per share:
 
 
 
 
 
 
 
 
 
Basic
$
3.67

 
$
3.43

 
$
(0.06
)
 
$
7.10

 
$
3.59

Diluted
$
3.51

 
$
3.23

 
$
(0.06
)
 
$
6.73

 
$
3.16

Number of shares used in per share calculations:
 
 
 
 
 
 
 
 
 
Basic
155,022

 
155,658

 
161,135

 
155,340

 
161,638

Diluted
162,170

 
165,327

 
161,135

 
163,749

 
183,958

Cash dividend declared per common share
$
1.10

 
$
1.10

 
$
0.50

 
$
2.20

 
$
0.95


 

















 LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
 
December 23,
2018
 
September 23,
2018
 
June 24,
2018
 
(unaudited)
 
(unaudited)
 
(1)
ASSETS
 
 
 
 
 
Cash and cash equivalents
$
3,359,793

 
$
2,568,085

 
$
4,512,257

Investments
275,670

 
1,050,863

 
437,338

Accounts receivable, net
1,868,842

 
1,846,845

 
2,176,936

Inventories
1,703,307

 
1,874,194

 
1,876,162

Prepaid expenses and other current assets
148,233

 
175,886

 
147,218

Total current assets
7,355,845

 
7,515,873

 
9,149,911

Property and equipment, net
1,013,306

 
951,376

 
902,547

Restricted cash and investments
255,292

 
255,924

 
256,301

Goodwill and intangible assets
1,736,468

 
1,767,562

 
1,802,740

Other assets
407,547

 
466,842

 
367,979

Total assets
$
10,768,458

 
$
10,957,577

 
$
12,479,478

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current portion of convertible notes, capital leases and commercial paper
$
187,102

 
$
550,369

 
$
610,030

Other current liabilities
1,979,735

 
2,274,596

 
2,540,278

Total current liabilities
2,166,837

 
2,824,965

 
3,150,308

Long-term debt and capital leases
1,813,190

 
1,805,091

 
1,806,562

Income taxes payable
859,232

 
845,740

 
851,936

Other long-term liabilities
87,827

 
100,144

 
90,629

Total liabilities
4,927,086

 
5,575,940

 
5,899,435

Temporary equity, convertible notes
57,009

 
58,812

 
78,192

Stockholders’ equity (2)
5,784,363

 
5,322,825

 
6,501,851

Total liabilities and stockholders’ equity
$
10,768,458

 
$
10,957,577

 
$
12,479,478

 
(1)
Derived from audited financial statements.
(2)
Common shares issued and outstanding were 153,961 as of December 23, 2018, 153,384 as of September 23, 2018, and 156,892 as of June 24, 2018.
 







 
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
 
Three Months Ended
 
Six Months Ended
 
December 23, 2018
 
September 23,
2018
 
December 24, 2017
 
December 23, 2018
 
December 24, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
568,855

 
$
533,360

 
$
(9,955
)
 
$
1,102,215

 
$
580,735

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
81,794

 
79,805

 
79,898

 
161,599

 
159,040

Deferred income taxes
20,797

 
(83,501
)
 
(271,478
)
 
(62,704
)
 
(228,274
)
Equity-based compensation expense
38,806

 
50,343

 
42,124

 
89,149

 
83,907

Amortization of note discounts and issuance costs
1,031

 
1,245

 
4,539

 
2,276

 
9,127

Other, net
(1,343
)
 
2,191

 
(1,108
)
 
848

 
5,461

Changes in operating assets and liabilities
(67,521
)
 
136,843

 
184,684

 
69,322

 
277,014

Net cash provided by operating activities
642,419

 
720,286

 
28,704

 
1,362,705

 
887,010

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Capital expenditures and intangible assets
(105,923
)
 
(56,098
)
 
(84,693
)
 
(162,021
)
 
(144,757
)
Business acquisition, net of cash acquired

 

 
(84
)
 

 
(115,697
)
Net sale (purchases) of available-for-sale securities
773,223

 
(612,583
)
 
(205,701
)
 
160,640

 
(323,475
)
Other, net
(369
)
 
(3,650
)
 
(4,396
)
 
(4,019
)
 
(14,996
)
Net cash provided by (used for) investing activities
666,931

 
(672,331
)
 
(294,874
)
 
(5,400
)
 
(598,925
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Principal payments on debt
(6,440
)
 
(79,831
)
 
(47,522
)
 
(86,271
)
 
(349,249
)
Net (repayments) proceeds from issuance of commercial paper
(359,518
)
 
(86
)
 
798,947

 
(359,604
)
 
798,947

Proceeds from borrowings on revolving credit facility

 

 
750,000

 

 
750,000

Repayments of borrowings on revolving credit facility

 

 
(750,000
)
 

 
(750,000
)
Treasury stock purchases
(1,519
)
 
(1,735,895
)
 
(1,111,450
)
 
(1,737,414
)
 
(1,266,835
)
Dividends paid
(167,907
)
 
(174,372
)
 
(73,127
)
 
(342,279
)
 
(145,865
)
Reissuance of treasury stock related to employee stock purchase plan
32,920

 

 
34,057

 
32,920

 
34,057

Proceeds from issuance of common stock
109

 

 
3,073

 
109

 
4,115

Other, net
(13,198
)
 
(9
)
 

 
(13,207
)
 
4

Net cash used for financing activities
(515,553
)
 
(1,990,193
)
 
(396,022
)
 
(2,505,746
)
 
(924,826
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(2,721
)
 
(2,311
)
 
842

 
(5,032
)
 
4,159

Net increase (decrease) in cash, cash equivalents, and restricted cash
791,076

 
(1,944,549
)
 
(661,350
)
 
(1,153,473
)
 
(632,582
)
Cash, cash equivalents, and restricted cash at beginning of period
2,824,009

 
4,768,558

 
2,662,507

 
4,768,558

 
2,633,739

Cash, cash equivalents, and restricted cash at end of period
$
3,615,085

 
$
2,824,009

 
$
2,001,157

 
$
3,615,085

 
$
2,001,157








 
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
 
Three Months Ended
 
December 23,
2018
 
September 23,
2018
Revenue
$
2,522,673

 
$
2,330,691

Gross margin
$
1,167,375

 
$
1,080,540

Gross margin as percentage of revenue
46.3
%
 
46.4
%
Operating expenses
$
439,808

 
$
450,540

Operating income
$
727,567

 
$
630,000

Operating income as a percentage of revenue
28.8
%
 
27.0
%
Net income
$
628,196

 
$
555,460

Net income per diluted share
$
3.87

 
$
3.36

Shares used in per share calculation - diluted
162,170

 
165,327

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited) 
 
Three Months Ended
 
Twelve Months Ended
 
December 23, 2018
 
September 23,
2018
 
June 24,
2018
 
March 25,
2018
 
December 23, 2018
U.S. GAAP net income
$
568,855

 
$
533,360

 
$
1,021,146

 
$
778,800

 
$
2,902,161

Pre-tax non-GAAP items:
 
 
 
 
 
 
 
 
 
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold
22,342

 
22,342

 
22,342

 
22,342

 
89,368

Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative
12,490

 
12,490

 
16,069

 
17,074

 
58,123

Restructuring charges - selling, general and administrative
2,356

 
3,417

 

 

 
5,773

Business combination acquisition and integration related costs - selling, general and administrative

 

 
728

 
107

 
835

Amortization of note discounts - other expense, net
886

 
900

 
1,851

 
2,860

 
6,497

Realized loss on sale or impairment of investments - other expense, net

 

 

 
46,641

 
46,641

Net income tax benefit on non-GAAP items
(5,704
)
 
(5,838
)
 
(4,686
)
 
(11,518
)
 
(27,746
)
Income tax benefit on the conclusion of certain tax matters
(1,635
)
 

 
(9,656
)
 
(4,511
)
 
(15,802
)
Income tax expense (benefit) associated with U.S. tax reform
28,606

 
(11,211
)
 
(115,838
)
 

 
(98,443
)
Non-GAAP net income
$
628,196

 
$
555,460

 
$
931,956

 
$
851,795

 
$
2,967,407

Non-GAAP net income per diluted share
$
3.87

 
$
3.36

 
$
5.31

 
$
4.79

 
$
17.44

GAAP net income per diluted share
$
3.51

 
$
3.23

 
$
5.82

 
$
4.33

 
$
17.00

U.S. GAAP number of shares used for per diluted share calculation
162,170

 
165,327

 
175,432

 
179,779

 
170,677

Effect of potential dilutive securities:
 
 
 
 
 
 
 
 
 
Effect of convertible note hedge

 

 

 
(1,993
)
 
(498
)
Non-GAAP number of shares used for per diluted share calculation
162,170

 
165,327

 
175,432

 
177,786

 
170,179







 
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
 
December 23,
2018
 
September 23,
2018
U.S. GAAP gross margin
$
1,145,033

 
$
1,058,198

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations
22,342

 
22,342

Non-GAAP gross margin
$
1,167,375

 
$
1,080,540

U.S. GAAP gross margin as a percentage of revenue
45.4
%
 
45.4
%
Non-GAAP gross margin as a percentage of revenue
46.3
%
 
46.4
%
U.S. GAAP operating expenses
$
454,654

 
$
466,447

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations
(12,490
)
 
(12,490
)
Restructuring charges
(2,356
)
 
(3,417
)
Non-GAAP operating expenses
$
439,808

 
$
450,540

U.S. GAAP operating income
$
690,379

 
$
591,751

Non-GAAP operating income
$
727,567

 
$
630,000

U.S. GAAP operating income as percent of revenue
27.4
%
 
25.4
%
Non-GAAP operating income as a percent of revenue
28.8
%
 
27.0
%
 



Exhibit


Exhibit 99.2
FOR IMMEDIATE RELEASE
Lam Research Corporation Contacts:
Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com
Lam Research Corporation Announces $5 Billion Share Repurchase Authorization
FREMONT, CA, January 23, 2019 – Lam Research Corporation ("Lam Research," or the "Company") today announced that its Board of Directors approved a $5 billion share repurchase authorization.
The Company is authorized to repurchase up to $5 billion of common stock. Repurchases may be made through both public market and private transactions and may include the use of derivative contracts and structured share repurchase agreements. This repurchase program has no termination date and may be suspended or discontinued at any time. Funding for this repurchase program may be through a combination of cash on hand, cash generation, and borrowings.
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 of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to, our plans to repurchase shares, including the plan or ability to fund share repurchase activities; our engineering capabilities; our technology leadership; our commitment to customer success; and our continued ability to accelerate innovation and enhance device performance. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect, our continued financial health and ability to repurchase shares and other risks detailed in documents filed by us with the Securities and Exchange Commission, including specifically our annual report on Form 10-K for the fiscal year ended June 24, 2018 and Form 10-Q for the quarter ended September 23, 2018. 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.
About Lam Research:
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. As a trusted, collaborative partner to the world’s leading semiconductor companies, we combine superior systems engineering capability, technology leadership, and unwavering commitment to customer success to accelerate innovation through enhanced device performance. In fact, today, nearly every advanced chip is built with Lam technology. 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)