# EDGAR Filing Document

**Accession Number:** 0000707549
**File Stem:** 0000707549-23-000005
**Filing Date:** 2023-1
**Character Count:** 30112
**Document Hash:** 1287af5704454d2ff6503ef2948217f6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000707549-23-000005.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0000707549-23-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230123

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Cost Associated with Exit or Disposal Activities

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LAM RESEARCH CORP
- **CENTRAL INDEX KEY:** 0000707549
- **STANDARD INDUSTRIAL CLASSIFICATION:** SPECIAL INDUSTRY MACHINERY, NEC [3559]
- **IRS NUMBER:** 942634797
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0625

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-12933
- **FILM NUMBER:** 23552607

**BUSINESS ADDRESS:**
- **STREET 1:** 4650 CUSHING BLVD
- **CITY:** FREMONT
- **STATE:** CA
- **ZIP:** 94538
- **BUSINESS PHONE:** 5106590200

**MAIL ADDRESS:**
- **STREET 1:** 4650 CUSHING PARKWAY
- **CITY:** FREMONT
- **STATE:** CA
- **ZIP:** 94538

?xml version="1.0" ? lrcx-20230123

<u>[**Table of Contents**](#i344c6547f4b14cac8d4bca0c156ff4ec_7)</u>

**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): January 23, 2023** 

**LAM RESEARCH CORPORATION** 

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **0-12933** | **94-2634797** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>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))

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 &nbsp;&nbsp;&nbsp;&nbsp; ☐

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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; ☐

------

<u>[**Table of Contents**](#i344c6547f4b14cac8d4bca0c156ff4ec_7)</u>

 **Table of Contents**

---

| | | |
|:---|:---|:---|
| Item 2.02. | <u>Results of Operations and Financial Condition</u> | <u>[3](#i344c6547f4b14cac8d4bca0c156ff4ec_10)</u> |
| Item 2.05. | <u>Costs Associated with Exit or Disposal Activities</u> | <u>[3](#i344c6547f4b14cac8d4bca0c156ff4ec_1649267441841)</u> |
| Item 9.01. | <u>Financial Statements and Exhibits</u> | <u>[3](#i344c6547f4b14cac8d4bca0c156ff4ec_13)</u> |
| <u>SIGNATURES</u> | <u>SIGNATURES</u> | <u>[4](#i344c6547f4b14cac8d4bca0c156ff4ec_16)</u> |
| EX-99.1 | EX-99.1 | |

---

------

<u>[**Table of Contents**](#i344c6547f4b14cac8d4bca0c156ff4ec_7)</u>

---

| | |
|:---|:---|
| **Item 2.02.** | **Results of Operations and Financial Condition** |

---

On January 25, 2023, Lam Research Corporation (the "Company") issued a press release announcing its financial results for the fiscal quarter ended December 25, 2022, 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 2.05.** | **Costs Associated with Exit or Disposal Activities** |

---

On January 23, 2023, the Company commenced a workforce reduction that is intended to better align the Company's cost structure with its outlook for the current economic environment and future business opportunities (the "Restructuring Plan"). The Company expects the Restructuring Plan to entail a workforce reduction of approximately 1,300 employee positions, which is approximately 7% of the Company's total number of employees. This Restructuring Plan is expected to be substantially completed by the end of the quarter ending June 25, 2023, but the timing of actions may vary by country based on local legal requirements.

The Restructuring Plan is expected to result in total charges of approximately $80.0 million, to be incurred during the quarter ending March 26, 2023. These charges are expected to consist of cash charges related to one-time termination benefits associated with the workforce reduction.

The Company anticipates implementing further cost reduction activities over the next twelve months that are not part of the Restructuring Plan, some of which may result in additional expenditures and charges in future quarters.

**Caution Regarding Forward-Looking Statements**

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d) Exhibits*

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 99.1 | <u>[Press Release dated January 25, 2023 announcing financial results for the fiscal quarter ended December 25, 2022](lrcx_exhibitx991xq2x2023.htm)</u> |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |

---

------

<u>[**Table of Contents**](#i344c6547f4b14cac8d4bca0c156ff4ec_7)</u>

 **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 25, 2023 | **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 99.1

**Exhibit 99.1**

**FOR IMMEDIATE RELEASE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Lam Research Corporation Reports Financial Results for the Quarter Ended December 25, 2022** 

FREMONT, Calif., January 25, 2023 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended December 25, 2022 (the "December 2022 quarter").

Highlights for the December 2022 quarter were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $5.28 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. GAAP gross margin of 45.0%, U.S. GAAP operating income as a percentage of revenue of 31.8%, and U.S. GAAP diluted EPS of $10.77.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP gross margin of 45.1%, non-GAAP operating income as a percentage of revenue of 32.1%, and non-GAAP diluted EPS of $10.71.

**Key Financial Data for the Quarters Ended** 

**December 25, 2022 and September 25, 2022** 

**(in thousands, except per-share data, percentages, and basis points)** 

---

| | | | |
|:---|:---|:---|:---|
| **U.S. GAAP** | **U.S. GAAP** | **U.S. GAAP** | **U.S. GAAP** |
| | **December 2022** | **September 2022** | **Change Q/Q** |
| Revenue | $5277569 | $5074121 | + 4% |
| Gross margin as percentage of revenue | 45.0% | 46.1% | - 110 bps |
| Operating income as percentage of revenue | 31.8% | 33.5% | - 170 bps |
| Diluted EPS | $10.77 | $10.39 | + 3.7% |
| **Non-GAAP** | **Non-GAAP** | **Non-GAAP** | **Non-GAAP** |
|  | **December 2022** | **September 2022** | **Change Q/Q** |
| Revenue | $5277569 | $5074121 | + 4% |
| Gross margin as percentage of revenue | 45.1% | 46.0% | - 90 bps |
| Operating income as percentage of revenue | 32.1% | 33.3% | - 120 bps |
| Diluted EPS | $10.71 | $10.42 | + 2.8% |

---

**U.S. GAAP Financial Results**

For the December 2022 quarter, revenue was $5,278 million, gross margin was $2,376 million, or 45.0% of revenue, operating expenses were $696 million, operating income was 31.8% of revenue, and net income was $1,469 million, or $10.77 per diluted share on a U.S. GAAP basis. This compares to revenue of $5,074 million, gross margin of $2,337 million, or 46.1% of revenue, operating expenses of $639 million, operating income of 33.5% of revenue, and net income of $1,426 million, or $10.39 per diluted share, for the quarter ended September 25, 2022 (the "September 2022 quarter").

**Non-GAAP Financial Results**

For the December 2022 quarter, non-GAAP gross margin was $2,382 million, or 45.1% of revenue, non-GAAP operating expenses were $686 million, non-GAAP operating income was 32.1% of revenue, and non-GAAP net income was $1,461 million, or $10.71 per diluted share. This compares to non-GAAP gross margin of $2,335 million, or 46.0% of revenue, non-GAAP operating expenses of $647 million, non-GAAP operating income of 33.3% of revenue, and non-GAAP net income of $1,429 million, or $10.42 per diluted share, for the September 2022 quarter.

"Lam closed out 2022 with record revenue and earnings per share for both the December quarter and calendar year, despite supply chain challenges and inflationary pressures," said Tim Archer, Lam Research's President and Chief Executive Officer. "Given the decline in wafer fabrication equipment spending expected in calendar year 2023, we are taking proactive steps to lower our cost structure and drive efficiencies across our global footprint, while preserving critical R&D. With these actions, Lam is focused on accelerating our strategic priorities to capitalize on the semiconductor industry's long-term growth prospects."

------

**Balance Sheet and Cash Flow Results**

Cash and cash equivalents, short-term investments, and restricted cash and investments balances increased to $4.8 billion at the end of the December 2022 quarter compared to $4.6 billion at the end of the September 2022 quarter. This increase was primarily the result of $1,140 million of cash generated from operating activities, partially offset by $456 million of share repurchases, including net share settlement of employee stock-based compensation; $236 million of dividends paid to stockholders; and $163 million of capital expenditures.

Deferred revenue at the end of the December 2022 quarter decreased to $1,984 million compared to $2,755 million as of the end of the September 2022 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 $379 million as of December 25, 2022 and $401 million as of September 25, 2022.

**Revenue** 

The geographic distribution of revenue during the December 2022 quarter is shown in the following table:

---

| | |
|:---|:---|
| **<u>Region</u>** | **<u>Revenue</u>** |
| China | 24% |
| Korea | 20% |
| Taiwan | 19% |
| Japan | 11% |
| Southeast Asia | 10% |
| United States | 10% |
| Europe | 6% |

---

The following table presents revenue disaggregated between system and customer support-related revenue:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 25,<br>2022** | **September 25,<br>2022** | **December 26,<br>2021** |
| | (In thousands) | (In thousands) | (In thousands) |
| System revenue | $3547518 | $3181987 | $2740173 |
| Customer support-related revenue and other | 1730051 | 1892134 | 1486431 |
|  | $5277569 | $5074121 | $4226604 |

---

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 March 26, 2023, Lam is providing the following guidance:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **U.S. GAAP** | **U.S. GAAP** | **U.S. GAAP** | **Reconciling Items** | **Reconciling Items** | **Non-GAAP** | **Non-GAAP** | **Non-GAAP** |
| Revenue | $3.8 Billion | +/- | $300 Million |  |  | $3.8 Billion | +/- | $300 Million |
| Gross margin as a percentage of revenue | 42.8% | +/- | 1% | $45 | Million | 44.0% | +/- | 1% |
| Operating income as a percentage of revenue | 25.3% | +/- | 1% | $84 | Million | 27.5% | +/- | 1% |
| Net income per diluted share | $5.95 | +/- | $0.75 | $74 | Million | $6.50 | +/- | $0.75 |
| Diluted share count | 135 million | 135 million | 135 million |  |  | 135 million | 135 million | 135 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 or recognized after the date of this release, except as described below. 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:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3 million; and restructuring charges, $42 million; totaling $45 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $4 million; and restructuring charges, $80 million; totaling $84 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income per diluted share - amortization related to intangible assets acquired though business combinations, $4 million; restructuring charges; $80 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items ($11 million); totaling $74 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 2022 and September 2022 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 the net income tax effect of non-GAAP items. Additionally, the non-GAAP results for the December 2022 quarter excludes a net income tax benefit associated with legal entity restructuring.

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 <u>https://investor.lamresearch.com</u>.

**Caution Regarding Forward-Looking Statements**

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. 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** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **December 25,<br>2022** | **September 25,<br>2022** | **December 26,<br>2021** | **December 25,<br>2022** | **December 26,<br>2021** |
| Revenue | $5277569 | $5074121 | $4226604 | $10351690 | $8531069 |
| Cost of goods sold | 2901220 | 2737286 | 2248688 | 5638506 | 4576399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 2376349 | 2336835 | 1977916 | 4713184 | 3954670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin as a percent of revenue | 45.0% | 46.1% | 46.8% | 45.5% | 46.4% |
| Research and development | 462385 | 433375 | 403644 | 895760 | 785971 |
| Selling, general and administrative | 233802 | 205620 | 236133 | 439422 | 458327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 696187 | 638995 | 639777 | 1335182 | 1244298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 1680162 | 1697840 | 1338139 | 3378002 | 2710372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income as a percent of revenue | 31.8% | 33.5% | 31.7% | 32.6% | 31.8% |
| Other income (expense), net | (28234) | (43095) | 17999 | (71329) | (10858) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 1651928 | 1654745 | 1356138 | 3306673 | 2699514 |
| Income tax expense | (183421) | (228866) | (161308) | (412287) | (324940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $1468507 | $1425879 | $1194830 | $2894386 | $2374574 |
| Net income per share: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $10.80 | $10.42 | $8.50 | $21.21 | $16.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $10.77 | $10.39 | $8.44 | $21.16 | $16.71 |
| Number of shares used in per share calculations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 136018 | 136891 | 140630 | 136455 | 141187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 136339 | 137208 | 141530 | 136774 | 142071 |
| Cash dividend declared per common share | $1.725 | $1.725 | $1.50 | $3.450 | $3.00 |

---

------

**LAM RESEARCH CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **December 25,<br>2022** | **September 25,<br>2022** | **June 26,<br>2022** |
| | **(unaudited)** | **(unaudited)** | **(1)** |
| ASSETS |  |  |  |
| Cash and cash equivalents | $4484716 | $4256499 | $3522001 |
| Investments | 103130 | 120551 | 135731 |
| Accounts receivable, net | 4070088 | 4569735 | 4313818 |
| Inventories | 4819966 | 4360325 | 3966294 |
| Prepaid expenses and other current assets | 230888 | 305554 | 347391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 13708788 | 13612664 | 12285235 |
| Property and equipment, net | 1863155 | 1718791 | 1647587 |
| Restricted cash and investments | 251344 | 250955 | 251534 |
| Goodwill and intangible assets | 1805218 | 1624932 | 1616963 |
| Other assets | 1577876 | 1513940 | 1394313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $19206381 | $18721282 | $17195632 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |
| Current portion of long-term debt and finance lease obligations | $7226 | $7110 | $7381 |
| Other current liabilities | 4539696 | 5046272 | 4557378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4546922 | 5053382 | 4564759 |
| Long-term debt and finance lease obligations | 4996057 | 4996363 | 4998449 |
| Income taxes payable | 862405 | 840214 | 931117 |
| Other long-term liabilities | 496362 | 418756 | 422941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 10901746 | 11308715 | 10917266 |
| Stockholders' equity (2) | 8304635 | 7412567 | 6278366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $19206381 | $18721282 | $17195632 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(1) Derived from audited financial statements.

(2) Common shares issued and outstanding were 135,403 as of December 25, 2022, 136,374 as of September 25, 2022, and 136,975 as of June 26, 2022.

------

**LAM RESEARCH CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands, unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **December 25,<br>2022** | **September 25,<br>2022** | **December 26,<br>2021** | **December 25,<br>2022** | **December 26,<br>2021** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |
| Net income | $1468507 | $1425879 | $1194830 | $2894386 | $2374574 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 85414 | 75751 | 81705 | 161165 | 161579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (6680) | (133616) | (13550) | (140296) | (26573) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation expense | 73084 | 71110 | 62834 | 144194 | 120933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 12729 | (2751) | (66514) | 9978 | (75204) |
| Changes in operating assets and liabilities | (492867) | (246785) | 181201 | (739652) | (657279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 1140187 | 1189588 | 1440506 | 2329775 | 1898030 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |  |
| Capital expenditures and intangible assets | (163378) | (140063) | (138493) | (303441) | (274920) |
| Business acquisitions, net of cash acquired | (119955) |  |  | (119955) |  |
| Net maturities and sales of available-for-sale securities | 17743 | 14695 | 325171 | 32438 | 1063214 |
| Other, net | (1657) | (2435) | (595) | (4092) | (5518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used for) provided by investing activities | (267247) | (127803) | 186083 | (395050) | 782776 |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |  |
| Principal payments on debt | (17082) | (1854) | (1698) | (18936) | (8036) |
| Treasury stock purchases | (456276) | (109779) | (414815) | (566055) | (1651568) |
| Dividends paid | (235980) | (205615) | (211216) | (441595) | (396647) |
| Reissuance of treasury stock related to employee stock purchase plan | 44996 |  | 46380 | 44996 | 46380 |
| Proceeds from issuance of common stock | 877 | 6796 | 3451 | 7673 | 4193 |
| Other, net | 1253 | (489) | (205) | 764 | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used for financing activities | (662212) | (310941) | (578103) | (973153) | (2005695) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 17878 | (16925) | (4678) | 953 | (8454) |
| Net increase in cash, cash equivalents, and restricted cash | 228606 | 733919 | 1043808 | 962525 | 666657 |
| Cash, cash equivalents, and restricted cash at beginning of period | 4507454 | 3773535 | 4293599 | 3773535 | 4670750 |
| Cash, cash equivalents, and restricted cash at end of period | $4736060 | $4507454 | $5337407 | $4736060 | $5337407 |

---

------

**Non-GAAP Financial Summary**

**(in thousands, except percentages and per share data)** 

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **December 25,<br>2022** | **September 25,<br>2022** |
| Revenue | $5277569 | $5074121 |
| Gross margin | $2381723 | $2335168 |
| Gross margin as percentage of revenue | 45.1% | 46.0% |
| Operating expenses | $686348 | $647239 |
| Operating income | $1695375 | $1687929 |
| Operating income as a percentage of revenue | 32.1% | 33.3% |
| Net income | $1460575 | $1429495 |
| Net income per diluted share | $10.71 | $10.42 |
| Shares used in per share calculation - diluted | 136339 | 137208 |

---

**Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income**

**(in thousands, except per share data)** 

**(unaudited)** 

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **December 25,<br>2022** | **September 25,<br>2022** |
| U.S. GAAP net income | $1468507 | $1425879 |
| Pre-tax non-GAAP items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 2521 | 1451 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elective deferred compensation ("EDC") related liability valuation increase (decrease) - cost of goods sold | 2853 | (3118) |
| &nbsp;&nbsp;&nbsp;&nbsp;EDC related liability valuation increase (decrease) - research and development | 5136 | (5612) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative | 1279 | 1110 |
| &nbsp;&nbsp;&nbsp;&nbsp;EDC related liability valuation increase (decrease) - selling, general and administrative | 3424 | (3742) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of note discounts - other income (expense), net | 712 | 707 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on EDC related asset - other income (expense), net | (10871) | 12726 |
| Net income tax (benefit) expense on non-GAAP items | (1213) | 94 |
| Net income tax benefit associated with legal entity restructuring | (11773) |  |
| Non-GAAP net income | $1460575 | $1429495 |
| Non-GAAP net income per diluted share | $10.71 | $10.42 |
| U.S. GAAP net income per diluted share | $10.77 | $10.39 |
| U.S. GAAP and non-GAAP number of shares used for per diluted share calculation | 136339 | 137208 |

---

------

**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** | **Three Months Ended** |
| | **December 25,<br>2022** | **September 25,<br>2022** |
| U.S. GAAP gross margin | $2376349 | $2336835 |
| Pre-tax non-GAAP items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization related to intangible assets acquired through certain business combinations | 2521 | 1451 |
| &nbsp;&nbsp;&nbsp;&nbsp;EDC related liability valuation increase (decrease) | 2853 | (3118) |
| Non-GAAP gross margin | $2381723 | $2335168 |
| U.S. GAAP gross margin as a percentage of revenue | 45.0% | 46.1% |
| Non-GAAP gross margin as a percentage of revenue | 45.1% | 46.0% |
| U.S. GAAP operating expenses | $696187 | $638995 |
| Pre-tax non-GAAP items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization related to intangible assets acquired through certain business combinations | (1279) | (1110) |
| &nbsp;&nbsp;&nbsp;&nbsp;EDC related liability valuation (increase) decrease | (8560) | 9354 |
| Non-GAAP operating expenses | $686348 | $647239 |
| U.S. GAAP operating income | $1680162 | $1697840 |
| Non-GAAP operating income | $1695375 | $1687929 |
| U.S. GAAP operating income as percent of revenue | 31.8% | 33.5% |
| Non-GAAP operating income as a percent of revenue | 32.1% | 33.3% |

---

**Lam Research Corporation Contacts:**

Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: <u>investor.relations@lamresearch.com</u>

<br>