Lam Research Corporation (LRCX) Bundle
A Brief History of Lam Research Corporation
Founded in 1980, Lam Research Corporation is a leader in the semiconductor manufacturing equipment industry, specializing in etch, deposition, and clean technologies. The company has grown significantly, driven by the increasing demand for advanced semiconductor manufacturing processes.
Recent Financial Performance
As of September 29, 2024, Lam Research reported a revenue of $4.168 billion for the quarter, reflecting an increase from $3.872 billion in the previous quarter. Year-over-year, this represents a substantial rise from $3.482 billion for the same period in 2023.
| Metric | September 29, 2024 | June 30, 2024 | September 24, 2023 |
|---|---|---|---|
| Revenue | $4,167,976 | $3,871,507 | $3,482,062 |
| Gross Margin | $2,002,683 | $1,840,098 | $1,654,702 |
| Net Income | $1,116,444 | $1,020,282 | $887,398 |
| Diluted Net Income per Share | $0.86 | $0.78 | $0.67 |
Stock Performance and Corporate Actions
In May 2024, Lam Research announced a ten-for-one stock split effective October 2, 2024. This strategic decision was made to improve the liquidity of its shares and attract a wider range of investors.
The company also maintained a robust share repurchase program, with a total repurchase of 12,011 shares at an average price of $84.00 per share during the quarter ending September 29, 2024. The total cost of these repurchases was approximately $1.003 billion.
Market Segmentation and Revenue Breakdown
In the September 2024 quarter, Lam Research saw a diverse revenue stream across different markets:
| Market Segment | Percentage of Revenue |
|---|---|
| Memory | 35% |
| Foundry | 41% |
| Logic/Integrated Device Manufacturing | 24% |
Research and Development Investments
Research and development (R&D) expenditures for the quarter were $495.4 million, accounting for 11.9% of total revenue, reflecting Lam Research's commitment to innovation and maintaining its competitive edge in technology.
Liquidity and Cash Flow
As of September 29, 2024, the company reported total cash, cash equivalents, and restricted cash of $6.072 billion, an increase from $5.851 billion at the end of the previous quarter. Cash generated from operating activities was $1.568 billion during the quarter.
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $1,568,471 |
| Capital Expenditures | ($110,588) |
| Treasury Stock Purchases | ($997,035) |
| Dividends Paid | ($260,985) |
Employee Metrics
As of September 29, 2024, Lam Research employed approximately 17,700 individuals, reflecting the company's growth and expansion in response to increasing demand in the semiconductor sector.
The company continues to focus on aligning its operations with market demands, implementing strategic initiatives to enhance operational efficiency and shareholder value.
A Who Owns Lam Research Corporation (LRCX)
Ownership Structure
As of 2024, Lam Research Corporation (LRCX) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically institutional investors who hold a significant percentage of the total shares outstanding.
Major Shareholders
The following table presents the major shareholders of Lam Research Corporation as of 2024:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% | 106,339,000 |
| Institutional Investor | BlackRock, Inc. | 7.5% | 97,553,000 |
| Institutional Investor | State Street Corporation | 4.9% | 63,853,000 |
| Mutual Fund | Fidelity Investments | 3.1% | 40,000,000 |
| Individual Investor | Lam Research Executive Team | 1.5% | 19,500,000 |
| Other | Other Institutional Holders | 30.9% | 400,000,000 |
Stock Performance
As of September 29, 2024, Lam Research's stock has shown a robust performance with a closing price of $84.00 per share. The company has undergone a ten-for-one stock split effective October 2, 2024, adjusting all share-related figures accordingly.
Recent Financial Metrics
The following table summarizes key financial metrics for Lam Research Corporation for the quarter ended September 29, 2024:
| Metric | Value |
|---|---|
| Revenue | $4,167,976,000 |
| Gross Margin | $2,002,683,000 |
| Net Income | $1,116,444,000 |
| Operating Expenses | $738,486,000 |
| Cash and Cash Equivalents | $6,067,471,000 |
| Number of Employees | 17,700 |
Share Buyback Program
In May 2024, Lam Research's Board of Directors authorized a share repurchase program of up to $10 billion. As of the end of September 2024, the company had repurchased shares totaling approximately $1,003,654,000 during the quarter.
Dividends
For the quarter ending September 29, 2024, Lam Research declared dividends totaling $261,000,000, reflecting the company's commitment to returning value to its shareholders while maintaining a solid financial position.
Market Capitalization
As of September 29, 2024, Lam Research Corporation's market capitalization stands at approximately $104 billion, based on the total number of outstanding shares and the current stock price.
Conclusion
The ownership structure of Lam Research Corporation indicates strong institutional support, reflecting confidence in the company's long-term growth potential within the semiconductor equipment industry. The financial metrics and share repurchase initiatives further underscore Lam Research's commitment to enhancing shareholder value.
Lam Research Corporation (LRCX) Mission Statement
Lam Research Corporation's mission is to enable customers to build the most advanced semiconductor devices in the world, driving innovation and efficiency in the semiconductor manufacturing process. The company emphasizes its commitment to sustainability, operational efficiency, and partnering with customers to maximize the performance of their equipment.
Key Aspects of the Mission Statement
- Innovation: Focus on leading-edge technology in semiconductor manufacturing equipment.
- Customer Partnership: Collaborate closely with customers to understand their needs and challenges.
- Sustainability: Commitment to reducing the environmental impact of manufacturing processes.
- Operational Efficiency: Continuous improvement in processes to enhance productivity and reduce costs.
Financial Overview (2024)
As of the end of September 2024, Lam Research reported significant financial achievements, reflecting the effectiveness of its mission and operational strategies:
| Financial Metric | September 29, 2024 | June 30, 2024 | September 24, 2023 |
|---|---|---|---|
| Revenue (in millions) | $4,168 | $3,872 | $3,482 |
| Gross Margin (in millions) | $2,003 | $1,840 | $1,655 |
| Gross Margin as a % of Revenue | 48.0% | 47.5% | 47.5% |
| Net Income (in millions) | $1,116 | $1,020 | $887 |
| Diluted Net Income per Share | $0.86 | $0.78 | $0.67 |
| Total Operating Expenses (in millions) | $738 | $714 | $631 |
Geographic Revenue Distribution
The revenue distribution by geographic region for the three months ended September 29, 2024, highlights the global reach of Lam Research:
| Region | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| China | $1,558 | 37% |
| Korea | $762 | 18% |
| Taiwan | $615 | 15% |
| United States | $488 | 12% |
| Japan | $301 | 7% |
| Southeast Asia | $245 | 6% |
| Europe | $198 | 5% |
Research and Development Investments
Lam Research continues to invest heavily in research and development, crucial for maintaining its competitive edge:
| R&D Metric | September 29, 2024 | June 30, 2024 | September 24, 2023 |
|---|---|---|---|
| R&D Expense (in millions) | $495 | $498 | $423 |
| R&D as a % of Revenue | 11.9% | 12.9% | 12.1% |
Liquidity and Cash Flow
As of September 29, 2024, Lam Research reported strong liquidity metrics:
| Cash Flow Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $6,067 |
| Net Cash Provided by Operating Activities | $1,568 |
| Capital Expenditures | $111 |
| Dividends Paid | $261 |
These financials reflect Lam Research's commitment to its mission by underpinning its operational strategies with robust financial performance, enabling it to continue investing in innovation and customer partnerships.
How Lam Research Corporation (LRCX) Works
Business Overview
Lam Research Corporation (LRCX) is a leading supplier of wafer fabrication equipment and services to the semiconductor industry. The company specializes in equipment used in the deposition, etch, and clean processes essential for semiconductor manufacturing. In 2024, the company is positioned to benefit from increasing demand for advanced semiconductor manufacturing technologies driven by trends in cloud computing, artificial intelligence, and 5G technology.
Financial Performance
As of the end of September 2024, Lam Research reported significant financial metrics revealing strong performance:
| Financial Metrics | September 29, 2024 | June 30, 2024 | September 24, 2023 |
|---|---|---|---|
| Revenue (in millions) | $4,168 | $3,872 | $3,482 |
| Gross Margin (in millions) | $2,003 | $1,840 | $1,655 |
| Gross Margin (% of Revenue) | 48.0% | 47.5% | 47.5% |
| Total Operating Expenses (in millions) | $738 | $714 | $632 |
| Net Income (in millions) | $1,116 | $1,020 | $887 |
| Diluted Net Income per Share | $0.86 | $0.78 | $0.67 |
Revenue Breakdown
The revenue of Lam Research is categorized into systems revenue and customer support-related revenue:
| Revenue Type | September 29, 2024 (in thousands) | June 30, 2024 (in thousands) | September 24, 2023 (in thousands) |
|---|---|---|---|
| Systems Revenue | $2,392,730 | $2,169,885 | $2,056,655 |
| Customer Support-Related Revenue | $1,775,246 | $1,701,622 | $1,425,407 |
Regional Revenue Distribution
For the three months ended September 29, 2024, revenue was distributed as follows:
| Region | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| China | $1,558,404 | 37% |
| Korea | $762,081 | 18% |
| Taiwan | $615,368 | 15% |
| United States | $488,381 | 12% |
| Japan | $301,386 | 7% |
| Southeast Asia | $244,789 | 6% |
| Europe | $197,567 | 5% |
Operating Expenses
Operating expenses for Lam Research include research and development (R&D) and selling, general, and administrative (SG&A) expenses:
| Expense Type | September 29, 2024 (in thousands) | June 30, 2024 (in thousands) | September 24, 2023 (in thousands) |
|---|---|---|---|
| Research & Development | $495,358 | $497,829 | $422,629 |
| Selling, General, and Administrative | $243,128 | $216,477 | $207,023 |
Cash Flow and Liquidity
As of September 29, 2024, Lam Research reported cash, cash equivalents, and restricted cash of $6.1 billion, reflecting an increase from $5.9 billion at the end of June 2024. Key cash flow metrics include:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $1,568.5 |
| Capital Expenditures | $110.6 |
| Dividends Paid | $261.0 |
| Treasury Stock Repurchases | $997.0 |
Market Position and Strategic Focus
Lam Research is focused on maintaining its leadership in the semiconductor equipment market by investing heavily in R&D and leveraging its extensive customer base. The company aims to support advancements in semiconductor manufacturing technologies, particularly in deposition, etch, and clean processes.
How Lam Research Corporation (LRCX) Makes Money
Revenue Streams
Lam Research Corporation generates revenue primarily through two segments: systems revenue and customer support-related revenue.
| Period | Systems Revenue (in thousands) | Customer Support Revenue (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|
| September 29, 2024 | $2,392,730 | $1,775,246 | $4,167,976 |
| June 30, 2024 | $2,169,885 | $1,701,622 | $3,871,507 |
| September 24, 2023 | $2,056,655 | $1,425,407 | $3,482,062 |
Market Segments
The company serves three primary markets in semiconductor manufacturing: memory, foundry, and logic/integrated device manufacturing.
As of September 29, 2024, the revenue distribution by market was:
| Market Segment | Percentage of Revenue |
|---|---|
| Memory | 35% |
| Foundry | 41% |
| Logic/Integrated Device Manufacturing | 24% |
Geographic Distribution
Revenue is also geographically diversified. For the quarter ended September 29, 2024, the revenue by region was as follows:
| Region | Revenue (in thousands) |
|---|---|
| China | $1,558,404 |
| Korea | $762,081 |
| Taiwan | $615,368 |
| United States | $488,381 |
| Japan | $301,386 |
| Southeast Asia | $244,789 |
| Europe | $197,567 |
Gross Margin and Operating Income
For the quarter ended September 29, 2024, Lam Research reported:
| Metric | Amount (in thousands) |
|---|---|
| Gross Margin | $2,002,683 |
| Gross Margin Percentage | 48.0% |
| Total Operating Expenses | $738,486 |
| Operating Income | $1,264,197 |
Research and Development (R&D) Investment
R&D is a critical component of Lam Research's strategy, with investments totaling:
| Period | R&D Expense (in thousands) | Percentage of Revenue |
|---|---|---|
| September 29, 2024 | $495,358 | 11.9% |
| June 30, 2024 | $497,829 | 12.9% |
| September 24, 2023 | $422,629 | 12.1% |
Cash Flow and Financial Health
As of September 29, 2024, Lam Research reported:
| Metric | Amount (in billions) |
|---|---|
| Cash, Cash Equivalents, and Restricted Cash | $6.1 billion |
| Net Income | $1,116,444 |
| Diluted Net Income Per Share | $0.86 |
Stock Repurchase Program
In May 2024, the Board authorized a stock repurchase program of up to $10 billion. For the quarter ending September 29, 2024, the company repurchased:
| Period | Total Shares Repurchased | Total Cost (in thousands) | Average Price Paid per Share |
|---|---|---|---|
| Quarter Ended September 29, 2024 | 12,011 | $997,035 | $84.00 |
Conclusion on Financial Performance
Lam Research's performance in the September 2024 quarter reflects strong demand in its core markets and effective management of operating expenses, contributing to significant net income growth.
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Article updated on 8 Nov 2024
Resources:
- Lam Research Corporation (LRCX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Lam Research Corporation (LRCX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lam Research Corporation (LRCX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.