lrcx-20241229

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 29, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-12933

___________________________________________________________

LAM RESEARCH CORPORATION

(Exact name of registrant as specified in its charter)

___________________________________________________________


Delaware						94-2634797
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

4650 Cushing Parkway, Fremont, California						94538
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (510) 572-0200

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 29, 2025, the Registrant had 1,283,662 thousand shares of Common Stock outstanding.

LAM RESEARCH CORPORATION

TABLE OF CONTENTS


		Page No.
	PART I. Financial Information

Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Statements of Operations for the three and six months ended December 29, 2024, and December 24, 2023	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended December 29, 2024, and December 24, 2023	4
	Condensed Consolidated Balance Sheets as of December 29, 2024, and June 30, 2024	5
	Condensed Consolidated Statements of Cash Flows for the six months ended December 29, 2024, and December 24, 2023	6
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended December 29, 2024, and December 24, 2023	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23
Item 4.	Controls and Procedures	23

	PART II. Other Information

Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	39
Signatures		40

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Revenue	$	4,376,047	$	3,758,259	$	8,544,023	$	7,240,321
Cost of goods sold	2,303,066		1,985,847		4,468,359		3,805,267
Restructuring charges, net - cost of goods sold	—		14,957		—		22,897
Total cost of goods sold	2,303,066		2,000,804		4,468,359		3,828,164
Gross margin	2,072,981		1,757,455		4,075,664		3,412,157
Research and development	494,947		469,712		990,305		892,341
Selling, general, and administrative	244,150		228,843		487,278		435,866
Restructuring charges, net - operating expenses	—		1,688		—		3,709
Total operating expenses	739,097		700,243		1,477,583		1,331,916
Operating income	1,333,884		1,057,212		2,598,081		2,080,241
Other income (expense), net	14,262		29,839		44,343		32,440
Income before income taxes	1,348,146		1,087,051		2,642,424		2,112,681
Income tax expense	(157,128)		(132,785)		(334,962)		(271,017)
Net income	$	1,191,018	$	954,266	$	2,307,462	$	1,841,664
Net income per share:
Basic	$	0.93	$	0.72	$	1.78	$	1.39
Diluted	$	0.92	$	0.72	$	1.78	$	1.39
Number of shares used in per share calculations:
Basic	1,287,109		1,316,293		1,293,173		1,321,067
Diluted	1,291,469		1,322,201		1,297,767		1,326,933

See Notes to Condensed Consolidated Financial Statements

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LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Net income	$	1,191,018	$	954,266	$	2,307,462	$	1,841,664
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(48,613)		14,530		(3,487)		(6,148)
Cash flow hedges:
Net unrealized gains during the period	4,552		1,671		2,116		10,269
Net gains reclassified into net income	(2,260)		(12,826)		(2,364)		(21,743)
	2,292		(11,155)		(248)		(11,474)
Available-for-sale investments:
Net unrealized gains during the period	—		102		—		284
Net gains reclassified into net income	—		—		—		(10)
	—		102		—		274
Defined benefit plans, net change in unrealized component	39		179		78		360
Other comprehensive income (loss), net of tax	(46,282)		3,656		(3,657)		(16,988)
Comprehensive income	$	1,144,736	$	957,922	$	2,303,805	$	1,824,676

See Notes to Condensed Consolidated Financial Statements

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LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)


	December 29, 2024		June 30, 2024
	(unaudited)		(1)
ASSETS
Cash and cash equivalents	$	5,665,379	$	5,847,856

Accounts receivable, less allowance of $5,713 as of December 29, 2024, and $5,277 as of June 30, 2024	3,304,946		2,519,250
Inventories	4,358,152		4,217,924
Prepaid expenses and other current assets	284,370		298,190
Total current assets	13,612,847		12,883,220
Property and equipment, net	2,313,590		2,154,518

Goodwill and intangible assets	1,761,021		1,765,073

Other assets	2,152,458		1,941,917
Total assets	$	19,839,916	$	18,744,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	822,278	$	613,966
Accrued expenses and other current liabilities	2,095,989		1,801,877
Deferred profit	1,927,893		1,417,781
Current portion of long-term debt and finance lease obligations	504,136		504,814
Total current liabilities	5,350,296		4,338,438
Long-term debt and finance lease obligations, less current portion	4,478,148		4,478,520
Income taxes payable	669,747		813,304
Other long-term liabilities	533,699		575,012
Total liabilities	11,031,890		10,205,274
Commitments and contingencies (refer to Note 12)
Stockholders’ equity:
Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, none outstanding	—		—
Common stock, at par value of $0.001 per share; authorized, 4,000,000 shares as of December 29, 2024 and June 30, 2024; issued and outstanding, 1,284,956 shares as of December 29, 2024, and 1,303,769 shares as of June 30, 2024	1,285		1,304
Additional paid-in capital	8,439,903		8,223,046
Treasury stock, at cost; 1,667,484 shares as of December 29, 2024, and 1,648,239 shares as of June 30, 2024	(26,024,098)		(24,365,783)
Accumulated other comprehensive loss	(134,085)		(130,428)
Retained earnings	26,525,021		24,811,315
Total stockholders’ equity	8,808,026		8,539,454
Total liabilities and stockholders’ equity	$	19,839,916	$	18,744,728

(1)Derived from audited financial statements

See Notes to Condensed Consolidated Financial Statements

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LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Six Months Ended
	December 29, 2024		December 24, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,307,462	$	1,841,664
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	190,495		181,420
Deferred income taxes	(191,576)		(112,985)
Equity-based compensation expense	161,970		137,112







Other, net	(9,049)		4,032
Changes in operating assets and liabilities	(148,889)		353,760
Net cash provided by operating activities	2,310,413		2,405,003
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets	(298,937)		(192,268)


Proceeds from maturities of available-for-sales securities	—		23,116






Other, net	13,011		(7,489)
Net cash used for investing activities	(285,926)		(176,641)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt, including finance lease obligations	(1,966)		(254,095)





Treasury stock purchases, including excise tax payments	(1,694,723)		(1,488,696)
Dividends paid	(558,619)		(494,746)
Reissuance of treasury stock related to employee stock purchase plan	60,557		53,081
Proceeds from issuance of common stock, net issuance costs	(237)		4,522

Other, net	437		(5,972)
Net cash used for financing activities	(2,194,551)		(2,185,906)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(3,340)		(4,306)
Net change in cash, cash equivalents, and restricted cash	(173,404)		38,150
Cash, cash equivalents, and restricted cash at beginning of period (1)	5,850,803		5,587,372
Cash, cash equivalents, and restricted cash at end of period (1)	$	5,677,399	$	5,625,522
Schedule of non-cash transactions:
Accrued payables for stock repurchases, including applicable excise tax	$	20,515	$	37,263
Accrued payables for capital expenditures	82,155		63,126
Dividends payable	296,042		263,133
Transfers of finished goods inventory to property and equipment	58,801		37,927

Reconciliation of cash, cash equivalents, and restricted cash	December 29, 2024		December 24, 2023
Cash and cash equivalents	$	5,665,379	$	5,623,289
Restricted cash and cash equivalents (1)	12,020		2,233
Total cash, cash equivalents, and restricted cash	$	5,677,399	$	5,625,522

(1)Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets

See Notes to Condensed Consolidated Financial Statements

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LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Three Months Ended
	December 29, 2024
	Common Stock Shares	Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance at September 29, 2024	1,291,958	$	1,292	$	8,303,014	$	(25,374,657)	$	(87,803)	$	25,630,045	$	8,471,891
Issuance of common stock	232	—		(194)		—		—		—		(194)
Purchase of treasury stock	(8,396)	(8)		—		(654,873)		—		—		(654,881)
Reissuance of treasury stock	1,162	1		55,124		5,432		—		—		60,557
Equity-based compensation expense	—	—		81,959		—		—		—		81,959
Net income	—	—		—		—		—		1,191,018		1,191,018
Other comprehensive loss	—	—		—		—		(46,282)		—		(46,282)
Cash dividends declared ($0.23 per common share)	—	—		—		—		—		(296,042)		(296,042)
Balance at December 29, 2024	1,284,956	$	1,285	$	8,439,903	$	(26,024,098)	$	(134,085)	$	26,525,021	$	8,808,026


	Six Months Ended
	December 29, 2024
	Common Stock Shares	Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance at June 30, 2024	1,303,769	$	1,304	$	8,223,046	$	(24,365,783)	$	(130,428)	$	24,811,315	$	8,539,454
Issuance of common stock	432	—		(237)		—		—		—		(237)
Purchase of treasury stock	(20,407)	(20)		—		(1,663,747)		—		—		(1,663,767)
Reissuance of treasury stock	1,162	1		55,124		5,432		—		—		60,557
Equity-based compensation expense	—	—		161,970		—		—		—		161,970
Net income	—	—		—		—		—		2,307,462		2,307,462
Other comprehensive loss	—	—		—		—		(3,657)		—		(3,657)
Cash dividends declared ($0.46 per common share)	—	—		—		—		—		(593,756)		(593,756)
Balance at December 29, 2024	1,284,956	$	1,285	$	8,439,903	$	(26,024,098)	$	(134,085)	$	26,525,021	$	8,808,026


See Notes to Condensed Consolidated Financial Statements

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	Three Months Ended
	December 24, 2023
	Common Stock Shares	Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance at September 24, 2023	1,320,721	$	1,320	$	7,876,778	$	(22,364,807)	$	(121,350)	$	22,655,389	$	8,047,330
Issuance of common stock	312	1		1,703		—		—		—		1,704
Purchase of treasury stock	(9,755)	(9)		—		(644,944)		—		—		(644,953)
Reissuance of treasury stock	1,504	1		46,615		6,465		—		—		53,081
Equity-based compensation expense	—	—		69,901		—		—		—		69,901
Net income	—	—		—		—		—		954,266		954,266
Other comprehensive income	—	—		—		—		3,656		—		3,656
Cash dividends declared ($0.20 per common share)	—	—		—		—		—		(262,507)		(262,507)