Lam Research Corporation, a global supplier of wafer fabrication equipment and services to the semiconductor industry, recently released its 2024 Form 10-K, providing insights into its financial performance and operations. The company's revenue for the year ended June 30, 2024, was $14.9 billion, representing a 14.5% decrease from the previous fiscal year. This decline was primarily attributed to decreases in non-volatile memory, partially offset by increases in DRAM spending by customers.
The company's gross margin for fiscal year 2024 was $7.05 billion, with a gross margin percentage of 47.3%, marking an increase from the previous year. This improvement was driven by a more favorable customer mix, reduced spending on material costs, and higher field resource utilization, partially offset by lower factory efficiencies.
Lam Research's research and development (R&D) expenses for fiscal year 2024 amounted to $1.9 billion, representing a 10.1% increase from the prior year. The rise in R&D spending was primarily due to increased employee-related costs, spending on supplies, deferred compensation plan-related costs, and transformational activities.
Selling, general, and administrative (SG&A) expenses for the same period totaled $868.2 million, reflecting a 4.3% increase from the previous year. This increase was primarily driven by higher spending on transformational activities.
The company reported net income of $3.83 billion for fiscal year 2024, a 15.1% decrease from the prior year. Additionally, the net income per diluted share was $29.00, down 12.7% from the previous year.
Lam Research's revenue was geographically concentrated, with China accounting for 42% of its total revenue in fiscal year 2024. The company also noted a decrease in advance deposits from newer customers, leading to a reduction in the deferred revenue balance.
Furthermore, the company provided insights into its restructuring activities, which were designed to better align its cost structure with the economic environment and business opportunities. In fiscal year 2024, restructuring charges decreased compared to the previous year, primarily due to lower employee severance and separation costs.
Lam Research's cash and cash equivalents, along with restricted cash balances, totaled approximately $5.9 billion as of June 30, 2024, compared to $5.6 billion in the prior year. Meanwhile, cash flows provided from operating activities amounted to $4.7 billion for fiscal year 2024, compared to $5.2 billion for fiscal year 2023.
The 2024 Form 10-K also provided a breakdown of the company's revenue between system and customer support-related revenue, as well as a percentage analysis of leading* and non-leading-edge equipment and upgrade revenue from different markets.
As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $795.0. Check out the company's full 10-K submission here.
