Lam Research Corp. Q2 FY2024 results: revenue $3.8 billion, down 28.8% on the year

Lam Research Corp. (LRCX) reported revenue of $3.8 billion for Q2 FY2024, the quarter ended 24 December 2023, down 28.8% on the same quarter a year earlier. Net income was $954 million, down 35.0% on the year, and diluted earnings per share $7.22. The figures are the company's own, from the 10-Q it filed with the SEC on 29 January 2024.

Revenue$3.8 billiondown 28.8%

Net income$954 milliondown 35.0%

Diluted EPS$7.22

QuarterQ2 FY2024ended 24 December 2023

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	3,758	3,482	n/a	n/a
Cost of revenue	2,001	1,827	n/a	n/a
Gross profit	1,757	1,655	n/a	n/a
Gross margin	46.8%	47.5%	n/a
Research and development	470	423	n/a	n/a
Selling, general and administrative	229	207	n/a	n/a
Operating income	1,057	1,023	n/a	n/a
Operating margin	28.1%	29.4%	n/a
Interest expense	46.3	45.3	n/a	n/a
Pre-tax income	1,087	1,026	n/a	n/a
Income tax	133	138	n/a	n/a
Effective tax rate	12.2%	13.5%	n/a
Net income	954	887	n/a	n/a
Net margin	25.4%	25.5%	n/a
Diluted EPS	$7.22	$6.66	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	1,454	951	n/a	n/a
Capital expenditure	115	77.0	n/a	n/a
Free cash flow	1,339	874	n/a	n/a
Free cash flow margin	35.6%	25.1%	n/a
Depreciation and amortisation	90.9	90.5	n/a	n/a
Share-based compensation	69.9	67.2	n/a	n/a
Buybacks	645	843	n/a	n/a
Dividends paid	264	230	n/a	n/a
Dividend per share	$2.00	$2.00	n/a	n/a
Diluted shares, weighted	132m	133m	n/a	n/a
Shares outstanding at period end	131m	132m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Total assets	18,784	18,538	n/a	n/a
Cash and equivalents	5,623	5,126	n/a	n/a
Receivables	2,707	2,811	n/a	n/a
Inventory	4,430	4,748	n/a	n/a
Goodwill	1,627	1,626	n/a	n/a
Long-term debt including finance leases	4,980	4,980	n/a	n/a
Shareholders' equity	8,222	8,047	n/a	n/a

Quarterly results, the last 12 quarters

	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	3,482	3,758	3,794	3,872	4,168	4,376	4,720	5,171	5,324	5,345	5,841	6,722
Cost of revenue	1,827	2,001	1,993	2,031	2,165	2,303	2,406	2,582	n/a	n/a	n/a	n/a
Gross profit	1,655	1,757	1,801	1,840	2,003	2,073	2,314	2,590	2,685	2,651	2,911	3,479
Gross margin	48%	47%	47%	48%	48%	47%	49%	50%	50%	50%	50%	52%
R&D	423	470	512	498	495	495	526	580	576	573	583	643
SG&A	207	229	216	216	243	244	226	268	279	268	280	322
Operating income	1,023	1,057	1,057	1,127	1,264	1,334	1,562	1,741	1,829	1,810	2,047	2,513
Operating margin	29%	28%	28%	29%	30%	30%	33%	34%	34%	34%	35%	37%
Interest expense	45.3	46.3	47.2	46.4	44.9	45.3	45.2	42.8	42.5	40.9	39.3	34.2
Pre-tax income	1,026	1,087	1,093	1,154	1,294	1,348	1,537	1,779	1,859	1,837	2,012	2,555
Tax rate	13%	12%	12%	12%	14%	12%	13%	3%	16%	13%	9%	11%
Net income	887	954	966	1,020	1,116	1,191	1,331	1,720	1,569	1,594	1,825	2,277
Net margin	25%	25%	25%	26%	27%	27%	28%	33%	29%	30%	31%	34%
Diluted EPS	$6.66	$7.22	$7.34	$7.78	$0.86	$0.92	$1.03	$1.34	$1.24	$1.26	$1.45	$1.81
Operating cash flow	951	1,454	1,385	862	1,568	742	1,309	2,554	1,779	1,480	1,141	1,457
Capital expenditure	77.0	115	104	101	111	188	288	172	185	261	332	189
Free cash flow	874	1,339	1,281	762	1,458	554	1,021	2,382	1,594	1,219	810	1,268
Buybacks	843	645	981	374	997	698	435	1,292	976	1,466	1,163	247
Dividends paid	230	264	263	261	261	298	296	295	292	328	326	325
Shares outstanding	132m	131m	131m	130m	1,292m	1,285m	1,283m	1,269m	1,259m	1,251m	1,251m	1,251m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless. EPS is as filed for each quarter. A split or a bonus issue changes the share count, so quarters before it are on the old count.

Source

10-Q for the period ended 24 December 2023, filed 29 January 2024, accession 0000707549-24-000016: the filing on EDGAR. All of Lam Research Corp.'s filings: EDGAR company page.

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