Slides
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LAM R E S E AR C H Cautionary statement regarding forward-looking statements This presentation and the accompanying discussion contain “forward-looking statements” under U.S. securities laws. Forward- looking statements include any statements that are not statements of historical fact. Examples of forward-looking statements include, but are not limited to: (1) anticipated business, balance sheet, cash flow and financial measures and results and related drivers, including guidance, whether on a GAAP or non-GAAP basis; (2) economic, market, industry and industry segment expectations; (3) product performance and changes in market share or customer demands; (4) our ability to successfully execute business, capital allocation, product and growth plans or strategies, or otherwise deliver value for customers and stockholders; and (5) the impact of trade regulations, export controls and trade disputes. Forward-looking statements speak only as of the date they are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed, including: the actions of our customers and competitors may be inconsistent with our expectations; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; trade regulations, export controls, trade disputes and other geopolitical tensions may inhibit our ability to sell our products; supply chain cost increases and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other factors discussed in our filings with the Securities and Exchange Commission (“SEC”), including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 30, 2024 and our quarterly report on Form 10-Q for the fiscal quarter ended December 29, 2024. You should not place undue reliance on forward-looking statements. Lam undertakes no obligation to update any forward-looking statements.
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LAM R E S E AR C H Agenda Tim Archer | President & Chief Executive Officer Sesha Varadarajan | SVP, Global Products Group Tim Archer | President & Chief Executive Officer Doug Bettinger | EVP, Chief Financial Officer Q&A Break
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LAM R E S E AR C H Video: Walk-on
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LAM R E S E AR C H
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LAM R E S E AR C H LAM R E S E AR C H $2.5 trillion in cumulative data center CapEx will drive $200 billion in WFE investments O v e r t he n e x t ~ 5 y e a r s WFE = Wafer fabrication equipment CapEx = Capital expenditures
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LAM R E S E AR C H LEADING EDGE WFE PER WAFER* LAM R E S E AR C H Within WFE, advanced node investments are accelerating *Note – represents the WFE for incremental wafers (including additions and conversions), and is an aggregate measure encompassing NAND, DRAM and leading-edge foundry/logic normalized to 2019 2019 2024 $1T Semi >1.5X ~1.2X
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Building blocks of Lam’s outperformance We will gain share at the technology inflections by delivering best-in-class deposition and etch products We will grow CSBG faster than the installed base by innovating throughout the product life cycle We will expand our SAM faster than WFE as deposition and etch intensity accelerates at the leading edge LAM R E S E AR C H SAM = Served available market CSBG = Customer Support Business Group
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We will expand our SAM faster than WFE as deposition and etch intensity accelerates at the leading edge In a $1T semiconductor industry… We will gain share at the technology inflections by delivering best-in-class deposition and etch products We will grow CSBG faster than the installed base by innovating throughout the product life cycle We are targeting high 30% SAM share of WFE LAM R E S E AR C H
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LAM R E S E AR C H Advanced packaging Tiered approach EUV patterning Mo metal Backside power GAA DRAM 4F2 Uniquely positioned to outperform Markets moving towards our strengths DRAM- Dynamic Random Access Memory EUV = Extreme ultraviolet GAA = Gate all around Mo = Molybdenum
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LAM R E S E AR C H NAND SAM per wafer 1.8x Deposition and etch intensity increasing NAND: 128 to 5xx
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LAM R E S E AR C H 2xx LAYERS 3xx LAYERS 4xx LAYERS >5xx LAYERS 1yy LAYERS NAND Foundational deposition and etch enablers Stack formation Tungsten fill Channel hole formation
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LAM R E S E AR C H LAM R E S E AR C H Video: NAND
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LAM R E S E AR C H CMOS bonding 2xx LAYERS 3xx LAYERS 4xx LAYERS >5xx LAYERS 1yy LAYERS NAND New approaches enabling higher, denser stacks Stress management Tiered- approachCryo etch Merged etches Array bonding Mo metal Multi-tiered approach CMOS = Complementary Metal-Oxide-Semiconductor Timing of node inflections may vary by customer Stack formation Tungsten fill Channel hole formation
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LAM R E S E AR C H LAM R E S E AR C H LAM R E S E AR C H Deposition and etch intensity increasing DRAM SAM per wafer 1.7x DRAM: calculated from 1b to 3D
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LAM R E S E AR C H DRAM Foundational deposition and etch enablers 6F2 4F2 (First gen) 4F2 (Future gen) 3D 1xx LAYERS HBM Tungsten fill EUV patterning HBM = High bandwidth memory Timing of node inflections may vary by customer
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LAM R E S E AR C H LAM R E S E AR C H Video: DRAM
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LAM R E S E AR C H DRAM New approaches enabling higher bit density 6F2 4F2 (First gen) 4F2 (Future gen) 3D 1xx LAYERS HBM Si HAR etch CMOS bonding Mo metal Tungsten fill EUV patterning ALD fill 3D HAR ALE 3D HAR etch 3D HAR ALD HAR = High aspect ratio etch ALD = Atomic layer deposition ALE = Atomic layer etch Timing of node inflections may vary by customer
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LAM R E S E AR C H LAM R E S E AR C H LAM R E S E AR C H Deposition and etch intensity increasing Foundry/logic SAM per wafer 2.0x Foundry/logic: calculated from 5 nm to CFET
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LAM R E S E AR C H FinFET GAA (2nm) GAA (1.4 / 1nm) CFET (<1nm) Foundry/logic Foundational deposition and etch enablers Advanced packaging Patterning/ EUV Transistor formation
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LAM R E S E AR C H LAM R E S E AR C H Video: Logic
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LAM R E S E AR C H FinFET GAA (2nm) CFET (<1nm) Foundry/logic New approaches enabling higher performance Advanced packaging ALD HAR selective etch Backside power Patterning/ EUV Transistor formation EUV underlayer Selective etch Mo metal Dry EUV resist and develop HAR ALD GAA (1.4 / 1nm) FinFET = Fin Field-Effect Transistor CFET = Complementary Field-Effect Transistor Timing of node inflections may vary by customer
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We are targeting >50% share of incremental SAM We will grow CSBG faster than the installed base by innovating throughout the product life cycle We are targeting high 30% SAM share of WFE In a $1T semiconductor industry… LAM R E S E AR C H
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Winning at the technology inflections Sesha Varadarajan SVP, Global Products Group
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LAM R E S E AR C H NAND Foundry/ logic DRAM OF INCREMENTAL SAM WE ARE TARGETING 50> % SHARE We will gain share by targeting critical technology inflections with uniquely differentiated products
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LAM R E S E AR C H NAND Foundry/ logic DRAM W h y w e w i n i n N A N D … We have the largest NAND installed base, enabling us to deliver capital efficient technology conversions with new tools and upgrades
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LAM R E S E AR C H FUTURENEWFOUNDATIONAL NAND Leading with the most differentiated portfolio ✚Merged HAR etch ✚Array bonding ✚CMOS bonding ✚New metal (Molybdenum) ✚Stress management Stack formation Channel hole formation Word line metallization ✚Channel hole etch ✚Tiered stacking
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LAM R E S E AR C H FUTURENEWFOUNDATIONAL NAND Leading with the most differentiated portfolio ✚Merged HAR etch Sense.i® Vantex® Lam Cryo 3.0 ✚Array bonding Coronus® DX ✚CMOS bonding SABRE® plating ✚New metal (Molybdenum) New ALD system ✚Stress management VECTOR® DT backside dep Stack formation Strata® deposition Channel hole formation Flex® HAR etch Kiyo® mask etch Word line metallization ALTUS® ALD tungsten ✚Channel hole etch Sense.i® Vantex® Lam Cryo 3.0 ✚Tiered stacking VECTOR® carbon plug fill
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LAM R E S E AR C H FUTURENEWFOUNDATIONAL NAND Leading with the most differentiated portfolio ✚Merged HAR etch Sense.i® Vantex® Lam Cryo 3.0 ✚Array bonding Coronus® DX ✚CMOS bonding SABRE® plating ✚New metal (Molybdenum) New ALD system ✚Stress management VECTOR® DT backside dep Stack formation Strata® deposition Channel hole formation Flex® HAR etch Kiyo® mask etch Word line metallization ALTUS® ALD tungsten ✚Channel hole etch Sense.i® Vantex® Lam Cryo 3.0 ✚Tiered stacking VECTOR® carbon plug fill
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LAM R E S E AR C H Vantex®: HAR etch innovation enabling NAND scaling Upgradeable installed baseDifferentiated performanceUnique Lam Cryo 3.0 hardware and process 80% PROFILE DEVIATION 3x HAR chambers Cryo chambers 90% CARBON EMISSIONS 10 µm HAR merge etch Highest voltage plasma Cryo temp range Cryo 3.0 chemistry Industry first multi-zone density control Improvement over Cryo 1.0 Source: Lam Research. 90% reduction in Kg CO2 per wafer. Estimated emissions reduction calculated using IPPC (Intergovernmental Panel on Climate Change) guidelines for greenhouse gas inventories. The estimated reduction has not been independently verified.
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LAM R E S E AR C H VECTOR®: Plasma carbon fill engineered for scaling Multi frequency plasma Unique dual zone powered pedestal Advanced chemistry Patented chamber clean architecture Achieves gapfillEnables independent species control Innovative chamber design Reactants Dep species Passivation species Top BottomHole depth Void-free fill Adoption of Lam carbon gapfill reduces the number of process steps by 50%, enables memory hole CD shrink and solves integration issues CD = Critical dimension
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LAM R E S E AR C H DRAMFoundry/ logic W h y w e w i n i n D R A M … We are extending leadership in HBM and introducing new products to enable device inflections at 4F2 and 3D DRAM NAND
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LAM R E S E AR C H FUTURE (3D DRAM)NEW (6F2 → 4F2)FOUNDATIONAL (6F2) DRAM Patterning/EUV Tungsten fill HBM ✚EUV patterning ✚Si HAR etch ✚CMOS bonding ✚Mo metal ✚ALD fill ✚New HAR etch ✚Mo contact ✚3D HAR ALD ✚3D HAR ALE Leveraging strengths for smaller and taller scaling
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LAM R E S E AR C H FUTURE (3D DRAM)NEW (6F2 → 4F2)FOUNDATIONAL (6F2) DRAM Patterning/EUV Kiyo® etch Tungsten fill ALTUS® HBM Syndion® TSV etch SABRE® electroplating ✚EUV patterning Aether® dry systems New etch system ✚Si HAR etch New etch system ✚CMOS bonding SABRE® plating ✚Mo metal New ALD system ✚ALD fill Striker® ALD ✚New HAR etch New etch system ✚Mo contact New ALD system ✚3D HAR ALD Striker® lateral ALD ✚3D HAR ALE Prevos® lateral ALE TSV = Through silicon via Leveraging strengths for smaller and taller scaling
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LAM R E S E AR C H FUTURE (3D DRAM)NEW (6F2 → 4F2)FOUNDATIONAL (6F2) DRAM Patterning/EUV Kiyo® etch Tungsten fill ALTUS® HBM Syndion® TSV etch SABRE® electroplating ✚Si HAR etch New etch system ✚CMOS bonding SABRE® plating ✚Mo metal New ALD system ✚New HAR etch New etch system ✚Mo contact New ALD system ✚3D HAR ALD Striker® lateral ALD ✚3D HAR ALE Prevos® lateral ALE ✚EUV patterning Aether® dry systems New etch system ✚ALD fill Striker® ALD Leveraging strengths for smaller and taller scaling
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LAM R E S E AR C H QSM = Quad-station module Bottoms up deposition Striker® solves toughest DRAM challenge: ALD gapfill Inhibition Unique QSM architecture ICEFill® 2.0 multistep sequencing ICEFill 2.0 Seam densification + +
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LAM R E S E AR C H AR = Aspect ratio Bottoms up deposition 2D 6F2 2D 4F2 3D DRAM Striker® solves toughest DRAM challenge: ALD gapfill Market leader in low-k deposition ICEFill enables higher AR gapfill Multistep capability enables extreme high aspect ratio and lateral fill 200 nm 10 nm200 nm 8,000 nm 13:1 AR 20:1 AR 200:1 AR and lateral fill 70 nm 15 nm Inhibition Unique QSM architecture ICEFill 2.0 multistep sequencing ICEFill® 2.0 Seam densification + +
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LAM R E S E AR C H LAM R E S E AR C H Aether®: Full suite of EUV solutions Aether®: Revolutionizing resist to extend EUV roadmap Improves pattern resolution with reduced EUV scanner dose, defects, cost, and waste Dry photoresist Improves EUV exposure efficiency to further reduce dose and cost Nimbus underlayer Collapse-free patterns with elimination of hazardous liquid waste Dry plasma develop in cumulative revenue next 5 years ~$1.5B Targeting
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LAM R E S E AR C H Foundry/ logic W h y w e w i n i n f o u n d r y/ l o g i c… We will build on our scaling expertise in patterning and metallization with differentiated products in advanced packaging, GAA, and CFET inflections NAND DRAM
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LAM R E S E AR C H FUTURENEWFOUNDATIONAL Disruptive innovations for the angstrom era Patterning/EUV Transistor formation ✚EUV patterning ✚GAA transistor ✚Litho overlay ✚Backside power ✚Mo metal ✚HAR etch ✚CFET transistor Backend wiring FOUNDRY / LOGIC
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LAM R E S E AR C H FUTURENEWFOUNDATIONAL Disruptive innovations for the angstrom era Patterning/EUV Kiyo® etch Transistor formation Kiyo® critical etch VECTOR® spacer dep ✚EUV patterning Aether® dry systems New etch system ✚GAA transistor Prevos® lateral ALE Striker® lateral ALD ✚Litho overlay VECTOR® DT backside dep ✚Backside power SABRE® plating ✚Mo metal New ALD system ✚HAR etch New etch system ✚CFET transistor Prevos® lateral ALE Striker® lateral ALD Backend wiring VECTOR® diffusion barrier SABRE® electroplating FOUNDRY / LOGIC
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LAM R E S E AR C H FUTURENEWFOUNDATIONAL Disruptive innovations for the angstrom era Patterning/EUV Kiyo® etch Transistor formation Kiyo® critical etch VECTOR® spacer dep ✚EUV patterning Aether® dry systems New etch system ✚GAA transistor Prevos® lateral ALE Striker® lateral ALD ✚Litho overlay VECTOR® DT backside dep ✚Mo metal New ALD system ✚HAR etch New etch system ✚CFET transistor Prevos® lateral ALE Striker® lateral ALD Backend wiring VECTOR® diffusion barrier SABRE® electroplating FOUNDRY / LOGIC ✚Backside power SABRE® plating
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LAM R E S E AR C H Conventional FineGrain SABRE®: Innovations enabling advanced packaging TurboCell Conventional Fine grain Cu Bond interface Void No interface or voids Void-free fill >20:1 AR Conventional Cell TurboCell Fill uniformity Differentiated chamber design Unique multistep processing Grain engineering 70% improvement >2x improvement Liner eALD TSV fill Micro Array Plate Proprietary sealed contacts Bonding strength Cu = Copper
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LAM R E S E AR C H LAM R E S E AR C H Deposition Etch Launching two groundbreaking products
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LAM R E S E AR C H LAM R E S E AR C H Deposition
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LAM R E S E AR C H Leader in ALD metals for more than two decades… Leader in ALD W since 2001 Introducing ALD Mo… LAM R E S E AR C H
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LAM R E S E AR C H Video: Halo
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LAM R E S E AR C H Introducing the new standard for depositing molybdenum (Mo) Patented architecture delivering unique sacrificial initiation layer Barrier free deposition – over 50% reduction in resistance Wide process capability: addressing logic, DRAM, and NAND LAM R E S E AR C H ALTUS® Halo
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LAM R E S E AR C H GROWTH OPPORTUNITY Mo ramping in high volume production Memory and logic SAM per 100k Tungsten Molybdenum >2.0x growth in shipments next 3-5 years >$2B Targeting
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LAM R E S E AR C H Mark Kiehlbauch CORPORATE VICE PRESIDENT OF NAND DEVELOPMENT Micron The integration of molybdenum metallization enables Micron to be first to market with industry- leading I/O bandwidth and storage capacity in the latest generation of NAND products. Lam’s ALTUS Halo tool has made it possible for Micron to bring molybdenum into mass production.” “ I/O = Input/output
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LAM R E S E AR C H LAM R E S E AR C H Deposition Etch Launching two groundbreaking products
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LAM R E S E AR C H LAM R E S E AR C H Etch
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LAM R E S E AR C H LAM R E S E AR C H Building on more than 20 years of conductor etch leadership, with billions of wafers etched with Kiyo®
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Video: Akara
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LAM R E S E AR C H Introducing the industry’s most advanced conductor etch reactor DirectDrive®: Fastest response – 100x improvement, reduced defects TEMPO: Industry best selectivity and depth uniformity SNAP: Highest atomic precision LAM R E S E AR C H Akara® on Sense.i® platform with DirectDrive®
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LAM R E S E AR C H Dr. Y.J. Mii EXECUTIVE VICE PRESIDENT AND CO -CHIEF OPERATING OFFICER tsmc As global demand for semiconductors continues to grow, innovative technology solutions from our partners are required to enable new, more powerful device architectures. Critical plasma etch capabilities will be an integral part of solving the many production challenges these new devices pose.” “
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LAM R E S E AR C H HAR CFET Logic etch HAR 3D DRAM etch Akara® enabling smaller and taller device inflections Vertical profile etch Vertical profile etch Stacked multi-material etch 9μm stacked multi-material etch
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Reimagining value for our customers – and Lam Tim Archer President and Chief Executive Officer
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We are targeting >50% share of incremental SAM We are targeting >2x growth in CSBG revenue We are targeting high 30% SAM share of WFE In a $1T semiconductor industry… LAM R E S E AR C H
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LAM R E S E AR C H Lam upgrades will deliver >$8B in customer savings over the next 5 years Upgrades as a growth accelerator TECHNOLOGY EXTENSION ASSET REPURPOSE PRODUCTIVITY AND SUSTAINABILITY
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LAM R E S E AR C H Complexity beyond technology Geographic fab expansion on a global scale Semiconductor industry boom causes significant talent shortage New fab ROI requires quick yield and high productivity 1 MILLION additional skilled workers by 2030 Fabs 0 10 20 30 40 50 n-1 n n+1 $ Billions AVERAGE FAB COST ($B) ROI = Return on investment
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LAM R E S E AR C H A transformational approach to customer service Services as a growth accelerator
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LAM R E S E AR C H Speed to problem resolution by combining Lam’s human ingenuity with AI, machine learning, and advanced analytics Human ingenuity meets AI speed and robotic precision Next-level service precision through Dextro cobot automation and smart maintenance AI = Artificial intelligence
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LAM R E S E AR C H LAM R E S E AR C H Video: Cobots
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LAM R E S E AR C H LAM R E S E AR C H Delivering next-level productivity For a 100,000 wafer starts per month fab, this can represent running cost savings >$100m/year 8% machine availability increase Maintenance first time right >90% Maintenance time reduction 30% Reduction in unscheduled maintenance 20%
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LAM R E S E AR C H CY2024 CY2028E $1T More than doubling CSBG revenue in a $1T market 1 1.5x >2x
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Continued financial outperformance Doug Bettinger EVP, Chief Financial Officer
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LAM R E S E AR C H CY2013-2017 (5 yr avg) Systems revenue segment* CY2020-2024 (5 yr avg) Systems revenue segment* Foundry/logic: 39% Foundry/logic: 49% NVM DRAM Foundry Logic/Other Deposition and etch within semiconductor equipment – the place to be 2.9x Semi industry GDP 1.7x Semicap SEMI 1.2x Lam SAM SEMICAP 180%+ since CY2013 Installed base increased Diversification across market segments Systems revenue includes equipment and equipment upgrade sales from deposition, etch, clean and our Reliant® product line* NVM = Non-volatile memory CAGR = Compound annual growth rate GDP = Gross domestic product GROWTH DRIVERS (CY2013-2024 CAGR)
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LAM R E S E AR C H Track record of growth Systems, $3 Systems, $7 Systems, $9 CSBG, $1 CSBG, $3 CSBG, $7 CY2013 CY2019 CY2024 NVM NVM NVM DRAM DRAM DRAM Foundry/ Logic/ Other Foundry/ Logic/ Other Foundry/ Logic/ Other CY2013 CY2019 CY2024 $29 $47 Low to Mid-$90* $4 $10 $16 WFE ($B) CAGR 11% Revenue ($B) CAGR 14% WFE Total WFE grew 3.3x from 2013 DRAM +4.4x Foundry / Logic/Other +3.6x NVM +1.5x Revenue Total revenue grew 4.0x from 2013 Established strong positions in all market segments Growth in spares and services *2024 WFE excludes China restrictions Outperforming WFE even in muted NAND environment Revenue numbers are rounded to the nearest billion dollar CSBG includes sales of customer service, spares, upgrades and non-leading–edge equipment from the company’s Reliant® product line Systems revenue includes sales of new leading-edge equipment in deposition, etch and clean markets
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LAM R E S E AR C H Systems, $3 Systems, $7 Systems, $9 CSBG, $1 CSBG, $3 CSBG, $7 CY2013 CY2019 CY2024 Even stronger outperformance in profitability NVM NVM NVM DRAM DRAM DRAM Foundry/ Logic/ Other Foundry/ Logic/ Other Foundry/ Logic/ Other CY2013 CY2019 CY2024 $29 $47 Low to Mid-$90* $4 $10 $16 WFE ($B) Revenue ($B) *2024 WFE excludes China restrictions Delivering higher gross margins Gross margin % 44.9% 45.7% 48.2% CY2013 CY2019 CY2024 CY2013 and CY2019 Gross Margin % have been adjusted for comparability Gross margin presented on non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix.
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LAM R E S E AR C H 44.9% 45.7% 48.2% CY2013 CY2019 CY2024 Outperformance across multiple metrics Delivering improved operating income Operating income ($B) and % $0.6 15.1% $2.5 26.6% $5.0 30.6% CY2013 CY2019 CY2024 Gross margin % Systems, $3 Systems, $7 Systems, $9 CSBG, $1 CSBG, $3 CSBG, $7 CY2013 CY2019 CY2024 $4 $10 $16 Revenue ($B) Gross margin and operating margin presented on non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix CY2013 and CY2019 Gross Margin % and OpInc $ and % have been adjusted for comparability. Reconciliation can be found in the appendix
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LAM R E S E AR C H And… delivering compelling profitability for shareholders EPS growth of 10x since CY2013 Operating inc ($B) and % Gross margin % $4 $10 $16 Revenue ($B) EPS ($) $0.6 15.1% $2.5 26.6% $5.0 30.6% CY2013 CY2019 CY2024 44.9% 45.7% 48.2% CY2013 CY2019 CY2024 Systems, $3 Systems, $7 Systems, $9 CSBG, $1 CSBG, $3 CSBG, $7 CY2013 CY2019 CY2024 $0.32 $1.45 $3.36 CY2013 CY2019 CY2024 CY2013 to CY2024 CAGR - OpInc: +21% - EPS: +24% EPS= Earnings per share CY2013 and CY2019 gross margin %, OpInc $ and % and EPS have been adjusted for comparability. Reconciliation can be found in the appendix Gross margin, operating income and earnings per share presented on non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix
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LAM R E S E AR C H Sustainably stronger business today Revenue growth Extending NAND leadership Building positions in F/L and DRAM through differentiation Annuity stream from growing installed base F/L = Foundry logic
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LAM R E S E AR C H Sustainably stronger business today Revenue growth Extending NAND leadership Building positions in F/L and DRAM through differentiation Annuity stream from growing installed base Global footprint Global manufacturing and service centers Close to customer strategy with operations and labs near customer sites
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LAM R E S E AR C H Sustainably stronger business today Revenue growth Extending NAND leadership Building positions in F/L and DRAM through differentiation Annuity stream from growing installed base Global footprint Global manufacturing and service centers Close to customer strategy with operations and labs near customer sites Operational scaling Maintaining variability in cost structure for flexibility Investing in system infrastructure to scale the company effectively for growth
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LAM R E S E AR C H Sustainably stronger business today Revenue growth Extending NAND leadership Building positions in F/L and DRAM through differentiation Annuity stream from growing installed base Global footprint Global manufacturing and service centers Close to customer strategy with operations and labs near customer sites Operational scaling Maintaining variability in cost structure for flexibility Investing in system infrastructure to scale the company effectively for growth Investments in R&D Enhanced product portfolio R&D as a % of operating expenses increased from mid-50% in CY2013 to high 60% in CY2024 R&D and operating expenses are presented on a GAAP basis.
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LAM R E S E AR C H Sustainably stronger business today Investments in R&D Enhanced product portfolio R&D as a % of operating expenses increased from mid-50% in CY2013 to high 60% in CY2024 Revenue growth Extending NAND leadership Building positions in F/L and DRAM through differentiation Annuity stream from growing installed base Global footprint Global manufacturing and service centers Close to customer strategy with operations and labs near customer sites Operational scaling Maintaining variability in cost structure for flexibility Investing in system infrastructure to scale the company effectively for growth
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LAM R E S E AR C H LAM R E S E AR C H Strong revenue growth Normalized CSBG revenue growth vs. installed base growth Installed base growth 10% CAGR CSBG revenue growth 17% CAGR CSBG revenue growth excluding Reliant® low double-digits CAGR CSBG revenues growing faster than installed base CY2013 CY2019 CY2024 Installed base growth CSBG revenue growth
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LAM R E S E AR C H LAM R E S E AR C H Steady growth in annuity revenues 0 2 4 6 8 10 12 14 CY2013 CY2019 CY2024 CY2028E $1T Semi Industry $Billions CSBG revenues growing even faster than our installed base 1.5x by 2028 >2x by $1 trillion industry 10%+ CAGR CSBG REVENUES
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LAM R E S E AR C H Global footprint to prepare for the growth ahead Tualatin and Sherwood, OR Manufacturing and labs Fremont and Livermore, CA Headquarters, manufacturing and labs Springfield and Eaton, OH Silicon component manufacturing Salzburg and Villach, Austria Manufacturing and labs Batu Kawan, Malaysia Manufacturing Osan, Hwaseong, and Yongin, Korea Manufacturing and labs Taoyuan City and Hsinchu City, Taiwan Manufacturing and labs Bengaluru, India Lab
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LAM R E S E AR C H Global operations strategy delivering margin improvement Customer geographic footprint Supply chain localization Operations cost optimization Asia US & Europe 5 year avg (CY2020-2024) CY2020 CY2022 CY2024 CY2028E $1T Semi Industry 30% 35% 40% 45% 50% 55% 60% CY2022 CY2024 CY2028E $1T Semi Industry % of revenue % of material purchases from Asia 80%+ of our revenue concentration from Asia-based fabs Increasing purchase of parts sourced close to customers Maintaining flexibility and responsiveness with lower cost structure
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LAM R E S E AR C H LAM R E S E AR C H AI embedded in solutions Faster responses to varying business demands Continued focus on our customer commitments Digital Transformation is a once in a quarter-century investment that will modernize our systems and support future growth with:
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CY2023 CY2024 CY2025E CY2028E $1T Industry Digital Transformation impact to operating income (%) Transforming our systems and processes DT investment phase DT return phase 150+ BPS Investing to deliver future efficiencies Enabling scaling to capitalize on industry and company growth 0.0% LAM R E S E AR C H
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LAM R E S E AR C H Focused execution to increase differentiation Increasing technological investments 0.0 0.5 1.0 1.5 2.0 2.5 3.0 CY2013 CY2016 CY2019 CY2022 CY2024 R&D Capital expenditures $Billions 0.8 1.1 1.4 2.3 2.5 Research and Development expenses presented on non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix ROIC = Return on Invested Capital. The company defines ROIC as tax-effected adjusted operating profit by invested capital. All years represented used annualized non-GAAP Operating Income and GAAP tax expense for December quarter of each year . Invested capital is defined as equity plus debt and finance leases, less cash, cash equivalents and investments
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LAM R E S E AR C H Focused execution to increase differentiation Increasing technological investments 0.0 0.5 1.0 1.5 2.0 2.5 3.0 CY2013 CY2016 CY2019 CY2022 CY2024 R&D Capital expenditures $Billions 0.8 1.1 1.4 2.3 2.5 ALTUS® ALD VECTOR® backside dep Sense.i® platform Selective etch suite Research and Development expenses presented on non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix ROIC = Return on Invested Capital. The company defines ROIC as tax-effected adjusted operating profit by invested capital. All years represented used annualized non-GAAP Operating Income and GAAP tax expense for December quarter of each year . Invested capital is defined as equity plus debt and finance leases, less cash, cash equivalents and investments
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LAM R E S E AR C H Focused execution to increase differentiation Increasing technological investments Sustaining ROIC at 5x of cost of capital 0.0 0.5 1.0 1.5 2.0 2.5 3.0 CY2013 CY2016 CY2019 CY2022 CY2024 R&D Capital expenditures $Billions 0.8 1.1 1.4 2.3 2.5 CY2013 CY2016 CY2019 CY2022 CY2024 50% 54% 69% 58% 22% Research and Development expenses presented on non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix ROIC = Return on Invested Capital. The company defines ROIC as tax-effected adjusted operating profit by invested capital. All years represented used annualized non-GAAP Operating Income and GAAP tax expense for December quarter of each year. Invested capital is defined as equity plus debt and finance leases, less cash, cash equivalents and investments
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LAM R E S E AR C H Cash returns to shareholders $21.9B Repurchases $6.2B Dividends $28.1B Total capital return Consistent execution of share repurchase activity Disciplined annual dividend growth 0 5 10 15 20 25 30 Cumulative dividend Cumulative repurchase Cumulative FCF Returned 99% of free cash flow CY2013-CY2024 $Billions
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LAM R E S E AR C H Strong shareholder value creation LRCX XSOX NASDAQ S&P500 Plan to return 85%+ of free cash flow in the near term Total shareholder return based on 2 years trailing avg Jan 2013 to Jan 2025 XSOX = PHLX Semiconductor Sector Total Return IndexLAM R E S E AR C H
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LAM R E S E AR C H 5% 10% 15% 20% 25% 30% 35% 0 1 2 3 4 5 6 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Mar'25E Improving operating leverage through cycles High 10% Low 30% 3.1 1.0 5.3 4.7 High 20% $Billions Revenue Avg. OpInc % June13 through March20 OpInc has been adjusted for comparability and is presented on Non-GAAP basis. Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix
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LAM R E S E AR C H Turning proven leadership into profitability PROFITABILITY Deposition / etch market growth Spending management Return to shareholders Install base annuity Differentiation and share gain Operational scaling and digital transformation LAM R E S E AR C H
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LAM R E S E AR C H CY2024 Actual Where we are today $16.2B 48.2% 30.6% $3.36 $4.1B Revenue Non-GAAP gross margin Non-GAAP operating margin Non-GAAP diluted earnings per share Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix Free cash flow
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LAM R E S E AR C H CY2024 Actual CY2028 Financial model Target model – CY2028 $16.2B 48.2% 30.6% $3.36 $4.1B $25B — $27B ~50% 34% — 35% $6.00 — $7.00 ~30% Revenue Non-GAAP gross margin Non-GAAP operating margin Non-GAAP diluted earnings per share Free cash flow (model as a % of revenue) Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix
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LAM R E S E AR C H CY2024 Actual CY2028 Financial model $1T semi industry Financial model Target model – beyond 2028 $16.2B 48.2% 30.6% $3.36 $4.1B $25B — $27B ~50% 34% — 35% $6.00 — $7.00 ~30% $30B+ 50%+ 35%+ $8.00+ 30%+ Revenue Non-GAAP gross margin Non-GAAP operating margin Non-GAAP diluted earnings per share Assumptions in financial model: • WFE continues to expand with growing market • Dep and etch intensity continues to grow • Continued growth in Foundry/Logic business • Memory intensity stabilizes • Operating framework continues to scale • Ongoing shareholder returns lower share count Free cash flow (model as a % of revenue) Reconciliation from U.S. GAAP to non-GAAP can be found in the appendix
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LAM R E S E AR C H …and, one more thing LAM R E S E AR C H
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LAM R E S E AR C H One proven leader Two critical enablers Lam outperformance Haiku LAM R E S E AR C H
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LAM R E S E AR C H LAM R E S E AR C H We are targeting >50% share of incremental SAM We are targeting >2x growth in CSBG revenue We are targeting high 30% SAM share of WFE In a $1T semiconductor industry… Lam will more than double revenue and profit LAM R E S E AR C H
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LAM R E S E AR C H LAM R E S E AR C H Q&A Tim Archer President and Chief Executive Officer Sesha Varadarajan Senior Vice President Global Products Group Doug Bettinger Executive Vice President Chief Financial Officer
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LAM R E S E AR C H LAM R E S E AR C H (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended December 29, 2013 September 29, 2013 June 30, 2013 March 31, 2013 December 29, 2013 December 29, 2013 September 29, 2013 June 30, 2013 March 31, 2013 December 29, 2013 US GAAP gross margin $ 487,789 $ 431,858 $ 413,927 $ 339,832 $ 1,673,406 $ 487,789 $ 431,858 $ 413,927 $ 339,832 $ 1,673,406 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 21,491 21,480 20,748 20,763 84,482 21,491 21,480 20,748 20,763 84,482 Elective deferred compensation (“EDC”) related liability valuation increase — — — — — 1,301 73 530 621 2,525 Costs associated with rationalization of certain product configurations — — (896) 207 (689) — — (896) 207 (689) Acquisition-related inventory fair value impact 1,225 2,047 4,266 7,448 14,986 1,225 2,047 4,266 7,448 14,986 Integration costs 264 1,324 778 2,408 4,774 264 1,324 778 2,408 4,774 Non-GAAP gross margin $ 510,769 $ 456,709 $ 438,823 $ 370,658 $ 1,776,959 $ 512,070 $ 456,782 $ 439,353 $ 371,279 $ 1,779,484 U.S. GAAP gross margin as a percentage of revenue 43.7 % 42.5 % 42.0 % 40.2 % 42.2 % 43.7 % 42.5 % 42.0 % 40.2 % 42.2 % Non-GAAP gross margin as a percentage of revenue 45.8 % 45.0 % 44.5 % 43.9 % 44.8 % 45.9 % 45.0 % 44.5 % 43.9 % 44.9 % U.S. GAAP operating expenses $ 323,315 $ 326,450 $ 327,429 $ 329,013 $ 1,306,207 $ 323,315 $ 326,450 $ 327,429 $ 329,013 $ 1,306,207 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (16,953) (16,947) (18,888) (19,445) (72,233) (16,953) (16,947) (18,888) (19,445) (72,233) EDC related liability valuation increase — — — — — (3,900) (219) (1,591) (1,864) (7,574) Integration costs (2,785) (8,063) (9,579) (13,123) (33,550) (2,785) (8,063) (9,579) (13,123) (33,550) Restructuring charges — (1,705) (792) — (2,497) — (1,705) (792) — (2,497) Costs associated with rationalization of certain product configurations (846) (844) (1,122) (443) (3,255) (846) (844) (1,122) (443) (3,255) Impairment of long lived asset (628) (7,004) — — (7,632) (628) (7,004) — — (7,632) Non-GAAP operating expenses $ 302,103 $ 291,887 $ 297,048 $ 296,002 $ 1,187,040 $ 298,203 $ 291,668 $ 295,457 $ 294,138 $ 1,179,466 U.S. GAAP operating income $ 164,474 $ 105,408 $ 86,498 $ 10,819 $ 367,199 $ 164,474 $ 105,408 $ 86,498 $ 10,819 $ 367,199 Non-GAAP operating income $ 208,666 $ 164,822 $ 141,775 $ 74,656 $ 589,919 $ 213,867 $ 165,114 $ 143,896 $ 77,141 $ 600,018 U.S. GAAP operating income as a percent of revenue 14.7 % 10.4 % 8.8 % 1.3 % 9.3 % 14.7 % 10.4 % 8.8 % 1.3 % 9.3 % Non-GAAP operating income as a percent of revenue 18.7 % 16.2 % 14.4 % 8.8 % 14.9 % 19.2 % 16.3 % 14.6 % 9.1 % 15.1 % 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)
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LAM R E S E AR C H LAM R E S E AR C H 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) (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended December 29, 2019 September 29, 2019 June 30, 2019 March 31, 2019 December 29, 2019 December 29, 2019 September 29, 2019 June 30, 2019 March 31, 2019 December 29, 2019 U.S. GAAP gross margin $ 1,179,644 $ 981,710 $ 1,080,891 $ 1,074,337 $ 4,316,582 $ 1,179,644 $ 981,710 $ 1,080,891 $ 1,074,337 $ 4,316,582 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 1,627 1,628 3,389 22,342 28,986 1,627 1,628 3,389 22,342 28,986 EDC related liability valuation increase (decrease) — — — — — 3,586 (56) 1,593 5,260 10,383 Restructuring charges, net — — 601 2,871 3,472 — — 601 2,871 3,472 Non-GAAP gross margin $ 1,181,271 $ 983,338 $ 1,084,881 $ 1,099,550 $ 4,349,040 $ 1,184,857 $ 983,282 $ 1,086,474 $ 1,104,810 $ 4,359,423 U.S. GAAP gross margin as a percentage of revenue 45.7 % 45.3 % 45.8 % 44.0 % 45.2 % 45.7 % 45.3 % 45.8 % 44.0 % 45.2 % Non-GAAP gross margin as a percentage of revenue 45.7 % 45.4 % 45.9 % 45.1 % 45.5 % 45.9 % 45.4 % 46.0 % 45.3 % 45.7 % U.S. GAAP operating expenses $ 493,133 $ 444,255 $ 463,806 $ 508,820 $ 1,910,014 $ 493,133 $ 444,255 $ 463,806 $ 508,820 $ 1,910,014 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (12,357) (12,357) (12,357) (12,446) (49,517) (12,357) (12,357) (12,357) (12,446) (49,517) EDC related liability valuation (increase) decrease — — — — — (10,760) 169 (4,779) (15,780) (31,150) Restructuring charges, net — (1,045) (1,288) (7,985) (10,318) — (1,045) (1,288) (7,985) (10,318) Non-GAAP operating expenses $ 480,776 $ 430,853 $ 450,161 $ 488,389 $ 1,850,179 $ 470,016 $ 431,022 $ 445,382 $ 472,609 $ 1,819,029 U.S. GAAP operating income $ 686,511 $ 537,455 $ 617,085 $ 565,517 $ 2,406,568 $ 686,511 $ 537,455 $ 617,085 $ 565,517 $ 2,406,568 Non-GAAP operating income $ 700,495 $ 552,485 $ 634,720 $ 611,161 $ 2,498,861 $ 714,841 $ 552,260 $ 641,092 $ 632,201 $ 2,540,394 U.S. GAAP operating income as percent of revenue 26.6 % 24.8 % 26.1 % 23.2 % 25.2 % 26.6 % 24.8 % 26.1 % 23.2 % 25.2 % Non-GAAP operating income as a percent of revenue 27.1 % 25.5 % 26.9 % 25.1 % 26.2 % 27.7 % 25.5 % 27.2 % 25.9 % 26.6 %
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LAM R E S E AR C H LAM R E S E AR C H 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 Twelve Months Ended December 29, 2024 September 29, 2024 June 30, 2024 March 31, 2024 December 29, 2024 U.S. GAAP gross margin $ 2,072,981 $ 2,002,683 $ 1,840,098 $ 1,800,536 $ 7,716,298 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 2,817 3,076 3,076 3,076 12,045 EDC related liability valuation increase 1,353 3,263 2,488 6,963 14,067 Restructuring charges, net — — 5,276 15,202 20,478 Transformational costs — — 25,407 13,270 38,677 Impairment of long-lived assets — — — 8,705 8,705 Non-GAAP gross margin $ 2,077,151 $ 2,009,022 $ 1,876,345 $ 1,847,752 $ 7,810,270 U.S. GAAP gross margin as a percentage of revenue 47.4 % 48.0 % 47.5 % 47.5 % 47.6 % Non-GAAP gross margin as a percentage of revenue 47.5 % 48.2 % 48.5 % 48.7 % 48.2 % U.S. GAAP operating expenses $ 739,097 $ 738,486 $ 713,538 $ 743,424 $ 2,934,545 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (538) (692) (770) (770) (2,770) EDC related liability valuation increase (4,058) (15,646) (7,465) (20,890) (48,059) Restructuring charges, net — — 768 (15,246) (14,478) Transformational costs — — (16,938) (8,846) (25,784) Non-GAAP operating expenses $ 734,501 $ 722,148 $ 689,133 $ 697,672 $ 2,843,454 U.S. GAAP operating income $ 1,333,884 $ 1,264,197 $ 1,126,560 $ 1,057,112 $ 4,781,753 Non-GAAP operating income $ 1,342,650 $ 1,286,874 $ 1,187,212 $ 1,150,080 $ 4,966,816 U.S. GAAP operating income as percent of revenue 30.5 % 30.3 % 29.1 % 27.9 % 29.5 % Non-GAAP operating income as a percent of revenue 30.7 % 30.9 % 30.7 % 30.3 % 30.6 %
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Twelve Months Ended December 29, 2013 December 29, 2013 (As Originally Disclosed) As Adjusted for Comparability) U.S. GAAP net income $ 339,201 $ 339,201 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 84,482 84,482 Costs associated with rationalization of certain product configurations - cost of goods sold (689) (689) EDC - related liability increase - cost of goods sold — 2,525 Acquisition-related inventory fair value impact - cost of goods sold 14,986 14,986 Integration costs - cost of goods sold 4,774 4,774 EDC related liability valuation increase - research and development — 4,544 Amortization related to intangible assets acquired though certain business combinations - selling, general and administrative 72,233 72,233 EDC related liability valuation increase - selling , general and administrative — 3,030 Restructuring charges - selling, general and administrative 2,497 2,497 Costs associated with rationalization of certain product configurations - operating expenses 3,255 3,255 Impairment of long lived asset - selling, general and administrative 7,632 7,632 Integration costs - operating expenses 33,550 33,550 Amortization of note discounts - other income (expense), net 28,806 28,806 Gain on EDC related asset - other expense, net — (11,186) Amortization of convertible note discount, Novellus assumed notes - other expense, net 3,295 3,295 Impairment of investment - other expense, net 3,711 3,711 Gain on sale of investment - other expense, net (4,813) (4,813) Net income tax benefit on non-GAAP items (40,002) (39,611) Net income tax benefit on conclusion of certain tax matters (6,298) (6,298) Income tax benefits on reinstatement of R&D tax credit (11,493) (11,493) Income tax expense associated with legal-entity integration 3,759 3,759 Non-GAAP net income $ 538,886 $ 538,190 U.S. GAAP net income per diluted share $ 1.99 * $ 0.20 Non-GAAP net income per diluted share $ 3.16 * $ 0.32 U.S. GAAP and Non-GAAP number of shares used for diluted per share calculation 170,302 * 1,703,021 • Share and per-share value “as originally disclosed” do not include the impact of a 10:1 stock split that was effective October 2, 2024
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) • Share and per-share value “as originally disclosed” do not include the impact of a 10:1 stock split that was effective October 2, 2024 Twelve Months Ended December 29, 2019 December 29, 2019 (As Originally Disclosed) As Adjusted for Comparability) U.S. GAAP net income $ 2,069,514 $ 2,069,514 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 28,986 28,986 EDC - related liability valuation increase - cost of goods sold — 10,383 Restructuring charges - cost of goods sold 3,472 3,472 Restructuring charges - research and development 4,904 4,904 EDC related liability valuation increase - research and development — 18,690 Amortization related to intangible assets acquired though certain business combinations - selling, general and administrative 49,517 49,517 EDC related liability valuation increase - selling , general and administrative — 12,460 Restructuring charges - selling, general and administrative 5,414 5,414 Amortization of note discounts - other income (expense), net 4,543 4,543 Gain on EDC related asset - other expense, net — (41,318) Net income tax benefit on non-GAAP items (14,678) (16,541) Net income tax benefit on conclusion of certain tax matters (3,094) (3,094) Income tax expense associated with U.S. tax reform 1,453 1,453 Cumulative income tax benefit reversal due to a court ruling 74,516 74,516 Non-GAAP net income $ 2,224,547 $ 2,222,899 U.S. GAAP net income per diluted share $ 13.49 * $ 1.35 Non-GAAP net income per diluted share $ 14.51 * $ 1.45 U.S. GAAP and Non-GAAP number of shares used for per diluted share calculation 153,362 * 1,533,619
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Twelve Months Ended December 29, 2024 U.S. GAAP net income $ 4,293,570 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 12,045 EDC - related liability valuation increase - cost of goods sold 14,067 Restructuring charges, net - cost of goods sold 20,478 Transformational costs - cost of goods sold 38,677 Impairment of long-lived assets - cost of goods sold 8,705 EDC related liability valuation increase - research and development 27,581 Transformational costs - research and development 12,892 Amortization related to intangible assets acquired though certain business combinations - selling, general and administrative 2,770 EDC related liability valuation increase - selling , general and administrative 20,478 Transformational costs - selling, general and administrative 12,892 Restructuring charges, net - operating expenses 14,478 Amortization of note discounts - other income (expense), net 3,049 Gain on EDC related asset - other income (expense), net (58,060) Net income tax benefit on non-GAAP items (15,241) Income tax benefit from change in tax law (20,778) Non-GAAP net income $ 4,387,603 U.S. GAAP net income per diluted share $ 3.29 Non-GAAP net income per diluted share $ 3.36 U.S. GAAP and Non-GAAP number of shares used for per diluted share calculation 1,305,641
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP Research and Development to Non-GAAP Net Income Research and Development (in thousands) (unaudited) Twelve Months Ended December 29, 2024 December 25, 2022 December 29, 2019 December 25, 2016 December 29, 2013 As Adjusted for Comparability) As Adjusted for Comparability) As Adjusted for Comparability) U.S. GAAP Research and development expense $ 2,000,408 $ 1,714,037 $ 1,219,780 $ 940,793 $ 699,470 Less pre-tax non-GAAP items: EDC related liability valuation increase (decrease) 27,581 (19,702) 18,690 3,206 4,544 Restructuring charges — — 4,904 115 — Transformational costs 12,892 — — — — Costs associated with campus consolidation — — — 11,319 — Product rationalization — — — 1,650 1,825 Non-GAAP Research and development expense $ 1,959,935 $ 1,733,739 $ 1,196,186 $ 924,503 $ 693,101
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LAM R E S E AR C H LAM R E S E AR C H Calculation of Return on Invested Capital (in thousands, except percentages) (unaudited) December 29, 2024 December 25, 2022 December 29, 2019 December 25, 2016 December 29, 2013 Non-GAAP operating income, 3 months ended $ 1,342,650 $ 1,695,375 $ 714,841 $ 491,604 $ 213,867 GAAP tax expense, 3 months ended 157,128 183,421 158,077 52,014 11,645 Return $ 1,185,522 $ 1,511,954 $ 556,764 $ 439,590 $ 202,222 Annualized return $ 4,742,088 $ 6,047,816 $ 2,227,056 $ 1,758,360 $ 808,888 Total stockholders’ equity $ 8,808,026 $ 8,304,635 $ 4,379,429 $ 6,395,696 $ 4,666,090 Senior convertible notes - mezzanine capital — — 38,304 197,313 185,154 Long-term debt, convertible notes, and capital leases, current portion 504,136 7,226 632,292 957,895 516,481 Long-term debt, convertible notes, and capital leases, non-current portion 4,478,148 4,996,057 3,786,067 1,768,713 803,276 cash and cash equivalents (5,665,379) (4,484,716) (3,035,887) (2,503,960) (1,132,555) Short-term investments — (103,130) (1,647,867) (3,329,425) (1,389,735) Total invested capital $ 8,124,931 $ 8,720,072 $ 4,152,338 $ 3,486,232 $ 3,648,711 Return on invested capital 58 % 69 % 54 % 50 % 22 % Non-GAAP operating income is presented on an “as adjusted for comparability” basis for December 29, 2013, and December 25, 2016. A reconciliation between U.S. GAAP and Non-GAAP can be found in the appendix for each period presented.
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LAM R E S E AR C H LAM R E S E AR C H Calculation of Free Cash Flow (in thousands) (unaudited) Twelve Months Ended December 29, 2024 December 24, 2023 December 25, 2022 December 26, 2021 December 27, 2020 December 29, 2019 U.S. GAAP net cash provided by operating activities $ 4,557,679 $ 5,254,166 $ 3,531,419 $ 4,499,045 $ 2,341,624 $ 2,585,283 U.S. GAAP cash used for capital expenditures and intangible assets (503,339) (390,395) (574,555) (469,138) (256,807) (242,780) Total Free Cash Flow $ 4,054,340 $ 4,863,771 $ 2,956,864 $ 4,029,907 $ 2,084,817 $ 2,342,503 December 23, 2018 December 24, 2017 December 25, 2016 December 27, 2015 December 28, 2014 December 29, 2013 U.S. GAAP net cash provided by operating activities $ 3,131,442 $ 2,038,970 $ 1,484,057 $ 1,226,645 $ 838,501 $ 458,393 U.S. GAAP cash used for capital expenditures and intangible assets (290,733) (223,684) (176,225) (172,628) (186,636) (140,007) Total Free Cash Flow $ 2,840,709 $ 1,815,286 $ 1,307,832 $ 1,054,017 $ 651,865 $ 318,386
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LAM R E S E AR C H LAM R E S E AR C H (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Three Months Ended December 28, 2014 September 28, 2014 June 29, 2014 March 30, 2014 December 28, 2014 September 28, 2014 June 29, 2014 March 30, 2014 US GAAP gross margin $ 536,657 $ 505,539 $ 557,036 $ 530,798 $ 536,657 $ 505,539 $ 557,036 $ 530,798 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 21,286 20,893 21,685 21,670 21,286 20,893 21,685 21,670 EDC related liability valuation increase — — — — 235 613 234 646 Costs associated with rationalization of certain product configurations — 1,600 — 4,855 — 1,600 — 4,855 Acquisition-related inventory fair value impact 2,101 — 1,167 — 2,101 — 1,167 — Synthetic lease impairment — — — 1,558 — — — 1,558 Non-GAAP gross margin $ 560,044 $ 528,032 $ 579,888 $ 558,881 $ 560,279 $ 528,645 $ 580,122 $ 559,527 U.S. GAAP gross margin as a percentage of revenue 43.6 % 43.9 % 44.6 % 43.2 % 43.6 % 43.9 % 44.6 % 43.2 % Non-GAAP gross margin as a percentage of revenue 45.4 % 45.8 % 46.4 % 45.5 % 45.5 % 45.9 % 46.5 % 45.6 % U.S. GAAP operating expenses $ 347,916 $ 337,241 $ 341,186 $ 338,861 $ 347,916 $ 337,241 $ 341,186 $ 338,861 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (16,083) (16,083) (16,547) (16,537) (16,083) (16,083) (16,547) (16,537) EDC related liability valuation increase — — — — (707) (1,838) (701) (1,937) Restructuring charges (1,620) — (295) — (1,620) — (295) — Costs associated with rationalization of certain product configurations — — (1,086) (1,922) — — (1,086) (1,922) Costs associated with disposition of business — — (1,103) — — — (1,103) — Impairment of long lived asset — — — (4,000) — — — (4,000) Synthetic lease impairment — — — (5,356) — — — (5,356) Non-GAAP operating expenses $ 330,213 $ 321,158 $ 322,155 $ 311,046 $ 329,506 $ 319,320 $ 321,454 $ 309,109 U.S. GAAP operating income $ 188,741 $ 168,298 $ 215,850 $ 191,937 $ 188,741 $ 168,298 $ 215,850 $ 191,937 Non-GAAP operating income $ 229,831 $ 206,874 $ 257,733 $ 247,835 $ 230,773 $ 209,325 $ 258,668 $ 250,418 U.S. GAAP operating income as a percent of revenue 15.3 % 14.6 % 17.3 % 15.6 % 15.3 % 14.6 % 17.3 % 15.6 % Non-GAAP operating income as a percent of revenue 18.7 % 18.0 % 20.6 % 20.2 % 18.7 % 18.2 % 20.7 % 20.4 % 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)
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LAM R E S E AR C H LAM R E S E AR C H (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Three Months Ended December 27, 2015 September 27, 2015 June 28, 2015 March 29, 2015 December 27, 2015 September 27, 2015 June 28, 2015 March 29, 2015 US GAAP gross margin $ 626,510 $ 722,363 $ 641,538 $ 600,602 $ 626,510 $ 722,363 $ 641,538 $ 600,602 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 21,250 21,250 21,286 21,286 21,250 21,250 21,286 21,286 EDC related liability valuation increase (decrease) — — — — 507 (1,212) 297 649 Restructuring charges — 371 — — — 371 — — Acquisition-related inventory fair value impact 649 — 1,192 308 649 — 1,192 308 Impairment of long-lived assets — — 9,821 — — — 9,821 — Non-GAAP gross margin $ 648,409 $ 743,984 $ 673,837 $ 622,196 $ 648,916 $ 742,772 $ 674,134 $ 622,845 U.S. GAAP gross margin as a percentage of revenue 43.9 % 45.1 % 43.3 % 43.1 % 43.9 % 45.1 % 43.3 % 43.1 % Non-GAAP gross margin as a percentage of revenue 45.5 % 46.5 % 45.5 % 44.7 % 45.5 % 46.4 % 45.5 % 44.7 % U.S. GAAP operating expenses $ 387,676 $ 386,935 $ 450,503 $ 360,637 $ 387,676 $ 386,935 $ 450,503 $ 360,637 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (16,083) (16,083) (16,083) (16,083) (16,083) (16,083) (16,083) (16,083) EDC related liability valuation (increase) decrease — — — — (1,521) 3,635 (890) (1,948) Business combination acquisition-related costs (17,392) — — — (17,392) — — — Restructuring (charges) benefits (2,066) (7,256) (434) 495 (2,066) (7,256) (434) 495 Goodwill impairment — — (79,444) — — — (79,444) — Non-GAAP operating expenses $ 352,135 $ 363,596 $ 354,542 $ 345,049 $ 350,614 $ 367,231 $ 353,652 $ 343,101 U.S. GAAP operating income $ 238,834 $ 335,428 $ 191,035 $ 239,965 $ 238,834 $ 335,428 $ 191,035 $ 239,965 Non-GAAP operating income $ 296,274 $ 380,388 $ 319,295 $ 277,147 $ 298,302 $ 375,541 $ 320,482 $ 279,744 U.S. GAAP operating income as a percent of revenue 16.8 % 21.0 % 12.9 % 17.2 % 16.8 % 21.0 % 12.9 % 17.2 % Non-GAAP operating income as a percent of revenue 20.8 % 23.8 % 21.6 % 19.9 % 20.9 % 23.5 % 21.6 % 20.1 % 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)
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LAM R E S E AR C H LAM R E S E AR C H (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Three Months Ended December 25, 2016 September 25, 2016 June 26, 2016 March 27, 2016 December 25, 2016 September 25, 2016 June 26, 2016 March 27, 2016 US GAAP gross margin $ 846,797 $ 716,197 $ 698,784 $ 571,265 $ 846,797 $ 716,197 $ 698,784 $ 571,265 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 21,250 21,250 21,250 21,250 21,250 21,250 21,250 21,250 EDC related liability valuation increase (decrease) — — — — 418 1,534 56 (226) Product rationalization 6,127 — — — 6,127 — — — Acquisition-related inventory fair value impact — — 128 — — — 128 — Non-GAAP gross margin $ 874,174 $ 737,447 $ 720,162 $ 592,515 $ 874,592 $ 738,981 $ 720,218 $ 592,289 U.S. GAAP gross margin as a percentage of revenue 45.0 % 43.9 % 45.2 % 43.5 % 45.0 % 43.9 % 45.2 % 43.5 % Non-GAAP gross margin as a percentage of revenue 46.4 % 45.2 % 46.6 % 45.1 % 46.5 % 45.3 % 46.6 % 45.1 % U.S. GAAP operating expenses $ 406,969 $ 400,250 $ 389,543 $ 380,512 $ 406,969 $ 400,250 $ 389,543 $ 380,512 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (16,083) (16,083) (16,083) (16,084) (16,083) (16,083) (16,083) (16,084) EDC related liability valuation (increase) decrease — — — — (1,253) (4,602) (169) 679 Business combination acquisition-related costs — (9,972) (19,270) (14,323) — (9,972) (19,270) (14,323) Restructuring (charges) benefits — — (160) 130 — — (160) 130 Product rationalization (1,650) — — — (1,650) — — — Litigation settlement (4,000) — — — (4,000) — — — Costs associated with campus consolidation (995) (2,561) (7,763) — (995) (2,561) (7,763) — Gain on sale of assets, net of associated exit costs — — 15,223 — — — 15,223 — Non-GAAP operating expenses $ 384,241 $ 371,634 $ 361,490 $ 350,235 $ 382,988 $ 367,032 $ 361,321 $ 350,914 U.S. GAAP operating income $ 439,828 $ 315,947 $ 309,241 $ 190,753 $ 439,828 $ 315,947 $ 309,241 $ 190,753 Non-GAAP operating income $ 489,933 $ 365,813 $ 358,672 $ 242,280 $ 491,604 $ 371,949 $ 358,897 $ 241,375 U.S. GAAP operating income as a percent of revenue 23.4 % 19.4 % 20.0 % 14.5 % 23.4 % 19.4 % 20.0 % 14.5 % Non-GAAP operating income as a percent of revenue 26.0 % 22.4 % 23.2 % 18.4 % 26.1 % 22.8 % 23.2 % 18.4 % 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)
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LAM R E S E AR C H LAM R E S E AR C H (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Three Months Ended December 24, 2017 September 24, 2017 June 25, 2017 March 26, 2017 December 24, 2017 September 24, 2017 June 25, 2017 March 26, 2017 US GAAP gross margin $ 1,205,567 $ 1,149,343 $ 1,068,961 $ 971,404 $ 1,205,567 $ 1,149,343 $ 1,068,961 $ 971,404 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 22,394 21,562 21,250 21,250 22,394 21,562 21,250 21,250 EDC related liability valuation increase — — — — 1,506 855 1,393 1,115 Non-GAAP gross margin $ 1,227,961 $ 1,170,905 $ 1,090,211 $ 992,654 $ 1,229,467 $ 1,171,760 $ 1,091,604 $ 993,769 U.S. GAAP gross margin as a percentage of revenue 46.7 % 46.4 % 45.6 % 45.1 % 46.7 % 46.4 % 45.6 % 45.1 % Non-GAAP gross margin as a percentage of revenue 47.6 % 47.2 % 46.5 % 46.1 % 47.6 % 47.3 % 46.6 % 46.1 % U.S. GAAP operating expenses $ 468,196 $ 456,121 $ 461,022 $ 432,986 $ 468,196 $ 456,121 $ 461,022 $ 432,986 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (17,074) (16,413) (16,083) (16,083) (17,074) (16,413) (16,083) (16,083) EDC related liability valuation increase — — — — (4,517) (2,565) (4,180) (3,344) Business combination acquisition and integration related costs (1,093) (936) — — (1,093) (936) — — Cost associated with business process reengineering (1,362) (716) (4,813) (2,674) (1,362) (716) (4,813) (2,674) Non-GAAP operating expenses $ 448,667 $ 438,056 $ 440,126 $ 414,229 $ 444,150 $ 435,491 $ 435,946 $ 410,885 U.S. GAAP operating income $ 737,371 $ 693,222 $ 607,939 $ 538,418 $ 737,371 $ 693,222 $ 607,939 $ 538,418 Non-GAAP operating income $ 779,294 $ 732,849 $ 650,085 $ 578,425 $ 785,317 $ 736,269 $ 655,658 $ 582,884 U.S. GAAP operating income as a percent of revenue 28.6 % 28.0 % 25.9 % 25.0 % 28.6 % 28.0 % 25.9 % 25.0 % Non-GAAP operating income as a percent of revenue 30.2 % 29.6 % 27.7 % 26.9 % 30.4 % 29.7 % 28.0 % 27.1 % 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)
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LAM R E S E AR C H LAM R E S E AR C H (As Originally Disclosed) (As Adjusted for Comparability) Three Months Ended Three Months Ended December 23, 2018 September 23, 2018 June 24, 2018 March 25, 2018 December 23, 2018 September 23, 2018 June 24, 2018 March 25, 2018 US GAAP gross margin $ 1,145,033 $ 1,058,198 $ 1,479,408 $ 1,330,714 $ 1,145,033 $ 1,058,198 $ 1,479,408 $ 1,330,714 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 22,342 22,342 22,342 22,342 22,342 22,342 22,342 22,342 EDC related liability valuation (decrease) increase — — — — (5,453) 1,363 1,765 (302) Non-GAAP gross margin $ 1,167,375 $ 1,080,540 $ 1,501,750 $ 1,353,056 $ 1,161,922 $ 1,081,903 $ 1,503,515 $ 1,352,754 U.S. GAAP gross margin as a percentage of revenue 45.4 % 45.4 % 47.3 % 46.0 % 45.4 % 45.4 % 47.3 % 46.0 % Non-GAAP gross margin as a percentage of revenue 46.3 % 46.4 % 48.0 % 46.8 % 46.1 % 46.4 % 48.1 % 46.8 % U.S. GAAP operating expenses $ 454,654 $ 466,447 $ 524,213 $ 503,203 $ 454,654 $ 466,447 $ 524,213 $ 503,203 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (12,490) (12,490) (16,069) (17,074) (12,490) (12,490) (16,069) (17,074) EDC related liability valuation decrease (increase) — — — — 16,360 (4,089) (5,295) 905 Restructuring charges (2,356) (3,417) — — (2,356) (3,417) — — Business combination acquisition and integration related costs — — (728) (107) — — (728) (107) Non-GAAP operating expenses $ 439,808 $ 450,540 $ 507,416 $ 486,022 $ 456,168 $ 446,451 $ 502,121 $ 486,927 U.S. GAAP operating income $ 690,379 $ 591,751 $ 955,195 $ 827,511 $ 690,379 $ 591,751 $ 955,195 $ 827,511 Non-GAAP operating income $ 727,567 $ 630,000 $ 994,334 $ 867,034 $ 705,754 $ 635,452 $ 1,001,394 $ 865,827 U.S. GAAP operating income as a percent of revenue 27.4 % 25.4 % 30.6 % 28.6 % 27.4 % 25.4 % 30.6 % 28.6 % Non-GAAP operating income as a percent of revenue 28.8 % 27.0 % 31.8 % 30.0 % 28.0 % 27.3 % 32.0 % 29.9 % 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)
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LAM R E S E AR C H LAM R E S E AR C H 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 December 27, 2020 September 27, 2020 June 28, 2020 March 29, 2020 U.S. GAAP gross margin $ 1,603,795 $ 1,506,179 $ 1,280,332 $ 1,167,007 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 1,270 1,270 1,627 1,627 EDC related liability valuation increase (decrease) 6,089 3,224 6,380 (8,653) Non-GAAP gross margin $ 1,611,154 $ 1,510,673 $ 1,288,339 $ 1,159,981 U.S. GAAP gross margin as a percentage of revenue 46.4 % 47.4 % 45.9 % 46.6 % Non-GAAP gross margin as a percentage of revenue 46.6 % 47.5 % 46.1 % 46.3 % U.S. GAAP operating expenses $ 594,071 $ 545,115 $ 524,610 $ 472,893 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (12,357) (12,357) (12,357) (12,357) EDC related liability valuation (increase) decrease (18,268) (9,672) (19,138) 25,958 Non-GAAP operating expenses $ 563,446 $ 523,086 $ 493,115 $ 486,494 U.S. GAAP operating income $ 1,009,724 $ 961,064 $ 755,722 $ 694,114 Non-GAAP operating income $ 1,047,708 $ 987,587 $ 795,224 $ 673,487 U.S. GAAP operating income as percent of revenue 29.2 % 30.2 % 27.1 % 27.7 % Non-GAAP operating income as a percent of revenue 30.3 % 31.1 % 28.5 % 26.9 %
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LAM R E S E AR C H LAM R E S E AR C H 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 December 26, 2021 September 26, 2021 June 27, 2021 March 28, 2021 U.S. GAAP gross margin $ 1,977,916 $ 1,976,754 $ 1,915,201 $ 1,780,131 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 1,092 1,092 1,092 1,092 EDC related liability valuation (decrease) increase (8) 1,896 4,256 1,986 Product rationalization — — 5,774 — Non-GAAP gross margin $ 1,979,000 $ 1,979,742 $ 1,926,323 $ 1,783,209 U.S. GAAP gross margin as a percentage of revenue 46.8 % 45.9 % 46.2 % 46.3 % Non-GAAP gross margin as a percentage of revenue 46.8 % 46.0 % 46.5 % 46.3 % U.S. GAAP operating expenses $ 639,777 $ 604,521 $ 599,274 $ 584,823 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (12,357) (12,357) (12,357) (12,357) EDC related liability valuation decrease (increase) 25 (5,687) (12,784) (5,959) Product rationalization — — (426) — Non-GAAP operating expenses $ 627,445 $ 586,477 $ 573,707 $ 566,507 U.S. GAAP operating income $ 1,338,139 $ 1,372,233 $ 1,315,927 $ 1,195,308 Non-GAAP operating income $ 1,351,555 $ 1,393,265 $ 1,352,616 $ 1,216,702 U.S. GAAP operating income as percent of revenue 31.7 % 31.9 % 31.7 % 31.1 % Non-GAAP operating income as a percent of revenue 32.0 % 32.4 % 32.6 % 31.6 %
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LAM R E S E AR C H LAM R E S E AR C H 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 December 25, 2022 September 25, 2022 June 26, 2022 March 27, 2022 U.S. GAAP gross margin $ 2,376,349 $ 2,336,835 $ 2,100,512 $ 1,816,625 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 2,521 1,451 1,308 1,153 EDC related liability valuation increase (decrease) 2,853 (3,118) (7,814) (2,868) Non-GAAP gross margin $ 2,381,723 $ 2,335,168 $ 2,094,006 $ 1,814,910 U.S. GAAP gross margin as a percentage of revenue 45.0 % 46.1 % 45.3 % 44.7 % Non-GAAP gross margin as a percentage of revenue 45.1 % 46.0 % 45.2 % 44.7 % U.S. GAAP operating expenses $ 696,187 $ 638,995 $ 621,159 $ 624,528 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (1,279) (1,110) (9,969) (12,494) EDC related liability valuation (increase) decrease (8,560) 9,354 23,441 8,602 Non-GAAP operating expenses $ 686,348 $ 647,239 $ 634,631 $ 620,636 U.S. GAAP operating income $ 1,680,162 $ 1,697,840 $ 1,479,353 $ 1,192,097 Non-GAAP operating income $ 1,695,375 $ 1,687,929 $ 1,459,375 $ 1,194,274 U.S. GAAP operating income as percent of revenue 31.8 % 33.5 % 31.9 % 29.4 % Non-GAAP operating income as a percent of revenue 32.1 % 33.3 % 31.5 % 29.4 %
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LAM R E S E AR C H LAM R E S E AR C H 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 December 24, 2023 September 24, 2023 June 25, 2023 March 26, 2023 U.S. GAAP gross margin $ 1,757,455 $ 1,654,702 $ 1,458,129 $ 1,605,612 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 2,631 3,149 3,093 3,093 EDC related liability valuation increase (decrease) 6,492 (591) 4,288 1,498 Restructuring charges, net 14,957 7,940 11,446 66,720 Product rationalization — — (13,383) 26,842 Transformational costs 8,853 4,269 1,634 558 Non-GAAP gross margin $ 1,790,388 $ 1,669,469 $ 1,465,207 $ 1,704,323 U.S. GAAP gross margin as a percentage of revenue 46.8 % 47.5 % 45.5 % 41.5 % Non-GAAP gross margin as a percentage of revenue 47.6 % 47.9 % 45.7 % 44.0 % U.S. GAAP operating expenses $ 700,243 $ 631,673 $ 603,524 $ 663,359 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (770) (1,186) (1,395) (1,395) EDC related liability valuation (increase) decrease (19,475) 1,773 (12,865) (4,495) Restructuring charges, net (1,688) (2,021) (1,742) (40,408) Product rationalization — — 6,686 (6,749) Transformational costs (16,051) (8,020) (4,294) (2,692) Non-GAAP operating expenses $ 662,259 $ 622,219 $ 589,914 $ 607,620 U.S. GAAP operating income $ 1,057,212 $ 1,023,029 $ 854,605 $ 942,253 Non-GAAP operating income $ 1,128,129 $ 1,047,250 $ 875,293 $ 1,096,703 U.S. GAAP operating income as percent of revenue 28.1 % 29.4 % 26.6 % 24.4 % Non-GAAP operating income as a percent of revenue 30.0 % 30.1 % 27.3 % 28.3 %
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended March 30, 2025 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 realized 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: • Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $2.8 million. • Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3.4 million. U.S. GAAP Reconciling Items Non-GAAP Revenue $4.65 Billion +/- $300 Million — $4.65 Billion +/- $300 Million Gross margin as a percentage of revenue 47.9% +/- 1% $ 2.8 Million 48.0% +/- 1% Operating income as a percentage of revenue 31.9% +/- 1% $ 3.4 Million 32.0% +/- 1%