Document
false0000707549 0000707549 2020-07-29 2020-07-29
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): July 29, 2020
  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)
(510572-0200
(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))
 
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, Par Value $0.001 Per Share
LRCX
The Nasdaq Stock Market
 
 
(Nasdaq Global Select Market)
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

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




Table of Contents


 Item 2.02.
Results of Operations and Financial Condition
On July 29, 2020, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 28, 2020, 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 9.01.
Financial Statements and Exhibits
(d) Exhibits
99.1




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:
July 29, 2020
 
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 Reports Financial Results for the Quarter Ended June 28, 2020
FREMONT, Calif., July 29, 2020 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended June 28, 2020 (the “June 2020 quarter”).
Highlights for the June 2020 quarter were as follows:
Revenue of $2.79 billion.
U.S. GAAP gross margin of 45.9%, U.S. GAAP operating income as a percentage of revenue of 27.1%, and U.S. GAAP diluted EPS of $4.73.
Non-GAAP gross margin of 46.1%, non-GAAP operating income as a percentage of revenue of 28.5%, and non-GAAP diluted EPS of $4.78.
Key Financial Data for the Quarters Ended
June 28, 2020 and March 29, 2020
(in thousands, except per-share data, percentages, and basis points) 
U.S. GAAP
 
  
June 2020
 
March 2020
 
Change Q/Q
Revenue
  
$
2,791,864

 
$
2,503,625

 
+12%
Gross margin as percentage of revenue
  
45.9
%
 
46.6
%
 
- 70 bps
Operating income as percentage of revenue
  
27.1
%
 
27.7
%
 
- 60 bps
Diluted EPS
  
$
4.73

 
$
3.88

 
+22%
 
 
 
 
 
 
 
Non-GAAP
 
  
June 2020
 
March 2020
 
Change Q/Q
Revenue
  
$
2,791,864

 
$
2,503,625

 
+12%
Gross margin as percentage of revenue
  
46.1
%
 
46.3
%
 
- 20 bps
Operating income as percentage of revenue
  
28.5
%
 
26.9
%
 
+ 160 bps
Diluted EPS
  
$
4.78

 
$
3.98

 
+20%

U.S. GAAP Financial Results
For the June 2020 quarter, revenue was $2,792 million, gross margin was $1,280 million, or 45.9% of revenue, operating expenses were $525 million, operating income was 27.1% of revenue, and net income was $697 million, or $4.73 per diluted share on a U.S. GAAP basis. This compares to revenue of $2,504 million, gross margin of $1,167 million, or 46.6% of revenue, operating expenses of $473 million, operating income of 27.7% of revenue, and net income of $575 million, or $3.88 per diluted share, for the quarter ended March 29, 2020 (the “March 2020 quarter”).
Non-GAAP Financial Results
For the June 2020 quarter, non-GAAP gross margin was $1,288 million, or 46.1% of revenue, non-GAAP operating expenses were $493 million, non-GAAP operating income was 28.5% of revenue, and non-GAAP net income was $704 million, or $4.78 per diluted share. This compares to non-GAAP gross margin of $1,160 million, or 46.3% of revenue, non-GAAP operating expenses of $486 million, non-GAAP operating income of 26.9% of revenue, and non-GAAP net income of $590 million, or $3.98 per diluted share, for the March 2020 quarter.
“Lam delivered strong financial results in the June quarter despite tremendous global health, macroeconomic, and geopolitical uncertainty,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “This is a clear demonstration of our Company’s ability to adapt and execute in a period of unprecedented challenges. With an outlook for continued industry growth, we are in an excellent position to outperform as our investments in disruptive innovation and differentiated customer support gain momentum.”








Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances increased to $7.0 billion at the end of the June 2020 quarter compared to $5.6 billion at the end of the March 2020 quarter. This increase was primarily the result of net proceeds of $1.97 billion on issuance of long-term debt and $813.0 million of cash generated from operating activities. These sources of cash were partially offset by the $1.25 billion repayment of borrowings from the Company's revolving credit facility and $167.7 million of dividends paid to stockholders.
Revenue
The geographic distribution of revenue during the June 2020 quarter is shown in the following table:
Region
Revenue
China
34%
Korea
32%
Taiwan
11%
Japan
8%
United States
7%
Southeast Asia
5%
Europe
3%
The following table presents revenue disaggregated between system and customer support-related revenue:
 
Three Months Ended
 
Twelve Months Ended
 
June 28,
2020
 
March 29,
2020
 
June 30,
2019
 
June 28,
2020
 
June 30,
2019
 
(In thousands)
Systems revenue
$
1,865,249

 
$
1,647,560

 
$
1,570,373

 
$
6,625,130

 
$
6,451,104

Customer support-related revenue and other
926,615

 
856,065

 
790,774

 
3,419,606

 
3,202,455

 
$
2,791,864

 
$
2,503,625

 
$
2,361,147

 
$
10,044,736

 
$
9,653,559

System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.
Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant product line.
Outlook
For the quarter ended September 27, 2020, Lam is providing the following guidance:
 
U.S. GAAP
 
Reconciling Items
 
Non-GAAP
Revenue
$3.1 Billion
+/-
$200 Million
 
 
$3.1 Billion
+/-
$200 Million
Gross margin as a percentage of revenue
46.4%
+/-
1%
 
$
2

Million
 
46.5%
+/-
1%
Operating income as a percentage of revenue
29.0%
+/-
1%
 
$
14

Million
 
29.5%
+/-
1%
Net income per diluted share
$5.06
+/-
$0.40
 
$
13

Million
 
$5.15
+/-
$0.40
Diluted share count
147 Million
 
 
147 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 arrangements 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, $2 million.
Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $14 million.
Net income per diluted share - amortization related to intangible assets acquired though business combinations, $14 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($2 million); totaling $13 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 June 2020 and March 2020 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and income tax expense (benefit) of non-GAAP items. Additionally, the June 2020 quarter non-GAAP results exclude an adjustment to the previously recognized cumulative income tax benefit reversal associated with the Ninth Circuit decision to deny a rehearing of the Altera stock-based compensation case and the March 2020 quarter non-GAAP results exclude the income tax benefit on conclusion of certain tax matters related to a prior business combination.
Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, 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: our ability to adapt and execute, including during a period of challenges; our outlook for continued industry growth; our ability to gain momentum from our investments in disruptive innovation and differentiated customer support as well as whether our innovation will indeed be disruptive and our support differentiated in the future; the impact of the COVID-19 outbreak on our operations and financial results; macroeconomic conditions; the status of the industry supply chain; customer demand for our equipment; industry conditions; the long–term resiliency of the semiconductor industry; the relevance of our technology to our customers; our positioning within the industry; and our ability to outperform. Some factors that may affect these forward-looking statements include: the severity, magnitude and duration of the COVID–19 pandemic (and the related governmental, public health, business and community responses to it), and their impacts on our business, results of operations and financial condition, are evolving and are highly uncertain and unpredictable; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; and widespread outbreaks of illness may impact our operations and revenue in affected areas; 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 30, 2019, our quarterly reports on Form 10–Q for the fiscal quarters ended September 29, 2019, December 29, 2019 and March 29, 2020 and our Current Report on Form 8-K dated April 30, 2020. 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)
 
Three Months Ended
 
Twelve Months Ended
 
June 28,
2020
 
March 29,
2020
 
June 30,
2019
 
June 28,
2020
 
June 30,
2019
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(1)
Revenue
$
2,791,864

 
$
2,503,625

 
$
2,361,147

 
$
10,044,736

 
$
9,653,559

Cost of goods sold
1,511,532

 
1,336,618

 
1,280,256

 
5,436,043

 
5,295,100

Gross margin
1,280,332

 
1,167,007

 
1,080,891

 
4,608,693

 
4,358,459

Gross margin as a percent of revenue
45.9
%
 
46.6
%
 
45.8
%
 
45.9
%
 
45.1
%
Research and development
338,810

 
307,914

 
295,578

 
1,252,412

 
1,191,320

Selling, general and administrative
185,800

 
164,979

 
168,228

 
682,479

 
702,407

Total operating expenses
524,610

 
472,893

 
463,806

 
1,934,891

 
1,893,727

Operating income
755,722

 
694,114

 
617,085

 
2,673,802

 
2,464,732

Operating income as a percent of revenue
27.1
%
 
27.7
%
 
26.1
%
 
26.6
%
 
25.5
%
Other expense, net
(7,553
)
 
(64,619
)
 
(7,667
)
 
(98,824
)
 
(18,161
)
Income before income taxes
748,169

 
629,495

 
609,418

 
2,574,978

 
2,446,571

Income tax expense
(51,496
)
 
(54,714
)
 
(67,593
)
 
(323,225
)
 
(255,141
)
Net income
$
696,673

 
$
574,781

 
$
541,825

 
$
2,251,753

 
$
2,191,430

Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
4.79

 
$
3.96

 
$
3.66

 
$
15.55

 
$
14.37

Diluted
$
4.73

 
$
3.88

 
$
3.51

 
$
15.10

 
$
13.70

Number of shares used in per share calculations:
 
 
 
 
 
 
 
 
 
Basic
145,295

 
145,301

 
148,131

 
144,814

 
152,478

Diluted
147,416

 
148,165

 
154,474

 
149,090

 
159,915

Cash dividend declared per common share
$
1.15

 
$
1.15

 
$
1.10

 
$
4.60

 
$
4.40

(1
)
Derived from audited financial statements.
















 LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
 
June 28,
2020
 
March 29,
2020
 
June 30,
2019
 
(unaudited)
 
(unaudited)
 
(1)
ASSETS
 
 
 
 
 
Cash and cash equivalents
$
4,915,172

 
$
3,961,586

 
$
3,658,219

Investments
1,795,080

 
1,431,550

 
1,772,984

Accounts receivable, net
2,097,099

 
2,191,070

 
1,455,522

Inventories
1,900,024

 
1,674,740

 
1,540,140

Prepaid expenses and other current assets
146,160

 
149,839

 
133,544

Total current assets
10,853,535

 
9,408,785

 
8,560,409

Property and equipment, net
1,071,499

 
1,048,619

 
1,059,077

Restricted cash and investments
253,911

 
254,155

 
255,177

Goodwill and intangible assets
1,652,968

 
1,666,732

 
1,701,547

Other assets
727,134

 
560,344

 
425,123

Total assets
$
14,559,047

 
$
12,938,635

 
$
12,001,333

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current portion of long-term debt and finance lease obligations
$
839,877

 
$
42,407

 
$
667,131

Other current liabilities
2,322,565

 
2,063,254

 
1,704,519

Total current liabilities
3,162,442

 
2,105,661

 
2,371,650

Long-term debt and finance lease obligations
4,970,848

 
5,043,931

 
3,822,768

Income taxes payable
909,709

 
889,287

 
892,790

Other long-term liabilities
332,559

 
350,603

 
190,821

Total liabilities
9,375,558

 
8,389,482

 
7,278,029

Temporary equity, convertible notes
10,995

 
11,546

 
49,439

Stockholders’ equity (2)
5,172,494

 
4,537,607

 
4,673,865

Total liabilities and stockholders’ equity
$
14,559,047

 
$
12,938,635

 
$
12,001,333

 
(1)
Derived from audited financial statements.
(2)
Common shares issued and outstanding were 145,331 as of June 28, 2020, 145,156 as of March 29, 2020, and 144,433 as of June 30, 2019.
 







 
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Three Months Ended
 
Twelve Months Ended
 
June 28,
2020
 
March 29,
2020
 
June 30,
2019
 
June 28,
2020
 
June 30,
2019
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(1)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net income
696,673

 
574,781

 
541,825

 
2,251,753

 
2,191,430

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
71,083

 
67,248

 
65,408

 
268,525

 
309,281

Deferred income taxes
(92,293
)
 

 
70,125

 
(17,777
)
 
(4,980
)
Equity-based compensation expense
53,153

 
47,414

 
44,845

 
189,197

 
187,234

Amortization of note discounts and issuance costs
1,329

 
1,361

 
2,206

 
5,940

 
7,343

Other, net
(10,822
)
 
7,811

 
(5,173
)
 
688

 
(5,819
)
Changes in operating assets and liabilities
93,925

 
(157,187
)
 
161,251

 
(571,875
)
 
491,524

Net cash provided by operating activities
813,048

 
541,428

 
880,487

 
2,126,451

 
3,176,013

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Capital expenditures and intangible assets
(50,554
)
 
(51,375
)
 
(65,948
)
 
(203,239
)
 
(303,491
)
Net (purchase) sale of available-for-sale securities
(354,350
)
 
211,159

 
(555,468
)
 
(15,000
)
 
(1,326,208
)
Other, net
(25,305
)
 
9,988

 
(2,067
)
 
(25,845
)
 
(7,355
)
Net cash (used for) provided by investing activities
(430,209
)
 
169,772

 
(623,483
)
 
(244,084
)
 
(1,637,054
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt, net of issuance costs
1,974,651

 

 

 
1,974,651

 
2,476,720

Principal payments on debt
(2,948
)
 
(617,637
)
 
(1,157
)
 
(667,537
)
 
(117,653
)
Net repayments from issuance of commercial paper

 

 
(300,000
)
 

 
(361,754
)
Proceeds from borrowings on revolving credit facility

 
1,250,000

 

 
1,250,000

 

Repayments of borrowings on revolving credit facility
(1,250,000
)
 

 

 
(1,250,000
)
 

Treasury stock purchases
(41,017
)
 
(245,433
)
 
(1,108,560
)
 
(1,369,649
)
 
(3,780,611
)
Dividends paid
(167,739
)
 
(163,510
)
 
(164,874
)
 
(656,838
)
 
(678,348
)
Reissuance of treasury stock related to employee stock purchase plan
46,992

 

 
45,041

 
85,439

 
77,961

Proceeds from issuance of common stock
1,869

 
1,714

 
1,694

 
8,084

 
6,813

Other, net
1,592

 
328

 

 
1,920

 
(13,208
)
Net cash provided by (used for) financing activities
563,400

 
225,462

 
(1,527,856
)
 
(623,930
)
 
(2,390,080
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
7,103

 
(10,715
)
 
(3,137
)
 
(2,750
)
 
(4,041
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
953,342

 
925,947

 
(1,273,989
)
 
1,255,687

 
(855,162
)
Cash, cash equivalents, and restricted cash at beginning of period
4,215,741

 
3,289,794

 
5,187,385

 
3,913,396

 
4,768,558

Cash, cash equivalents, and restricted cash at end of period
$
5,169,083

 
$
4,215,741

 
$
3,913,396

 
$
5,169,083

 
$
3,913,396

(1
)
Derived from audited financial statements.
                          






 
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
 
Three Months Ended
 
June 28,
2020
 
March 29,
2020
Revenue
$
2,791,864

 
$
2,503,625

Gross margin
$
1,288,339

 
$
1,159,981

Gross margin as percentage of revenue
46.1
%
 
46.3
%
Operating expenses
$
493,115

 
$
486,494

Operating income
$
795,224

 
$
673,487

Operating income as a percentage of revenue
28.5
%
 
26.9
%
Net income
$
704,456

 
$
590,359

Net income per diluted share
$
4.78

 
$
3.98

Shares used in per share calculation - diluted
147,416

 
148,165

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited) 
 
Three Months Ended
 
June 28,
2020
 
March 29,
2020
U.S. GAAP net income
$
696,673

 
$
574,781

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold
1,627

 
1,627

Loss (gain) on elective deferred compensation ("EDC") - related liability - cost of goods sold
6,380

 
(8,653
)
Loss (gain) on EDC - related liability - research and development
11,483

 
(15,575
)
Amortization related to intangible assets acquired through certain business combinations -selling, general and administrative
12,357

 
12,357

Loss (gain) on EDC - related liability - selling, general and administrative
7,655

 
(10,383
)
Amortization of note discounts - other expense, net
935

 
953

(Gain) loss on EDC - related asset - other expense, net
(26,135
)
 
33,828

Net income tax (benefit) expense on non-GAAP items
(5,698
)
 
1,700

Adjustment to cumulative income tax benefit reversal due to a court ruling
(821
)
 

Income tax benefit on the conclusion of certain tax matters

 
(276
)
Non-GAAP net income
$
704,456

 
$
590,359

Non-GAAP net income per diluted share
$
4.78

 
$
3.98

U.S. GAAP net income per diluted share
$
4.73

 
$
3.88

U.S. GAAP and non-GAAP number of shares used for per diluted share calculation
147,416

 
148,165







 
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
 
June 28,
2020
 
March 29,
2020
U.S. GAAP gross margin
$
1,280,332

 
$
1,167,007

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations
1,627

 
1,627

Loss (gain) on EDC-related liability
6,380

 
(8,653
)
Non-GAAP gross margin
$
1,288,339

 
$
1,159,981

U.S. GAAP gross margin as a percentage of revenue
45.9
%
 
46.6
%
Non-GAAP gross margin as a percentage of revenue
46.1
%
 
46.3
%
U.S. GAAP operating expenses
$
524,610

 
$
472,893

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations
(12,357
)
 
(12,357
)
(Loss) gain on EDC-related liability
(19,138
)
 
25,958

Non-GAAP operating expenses
$
493,115

 
$
486,494

U.S. GAAP operating income
$
755,722

 
$
694,114

Non-GAAP operating income
$
795,224

 
$
673,487

U.S. GAAP operating income as percent of revenue
27.1
%
 
27.7
%
Non-GAAP operating income as a percent of revenue
28.5
%
 
26.9
%
 
Lam Research Corporation Contact:
Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com