Lam Research Corporation, a global supplier of wafer fabrication equipment and services to the semiconductor industry, recently released its 10-Q for the quarter ended December 29, 2024. The company reported revenue of $4.38 billion for the quarter, representing a 5% increase from the previous quarter. The gross margin for the period was $2.07 billion, accounting for 47.4% of total revenue.
The company's net income for the quarter was $1.19 billion, resulting in diluted net income per share of $0.92. The deferred revenue balance at the end of the quarter was $2.03 billion, slightly lower than the previous quarter. The decrease in gross margin as a percentage of revenue was primarily due to an unfavorable customer mix.
Lam Research's cash, cash equivalents, and restricted cash balances decreased to $5.7 billion at the end of the quarter, mainly due to share repurchases, dividends paid to stockholders, and capital expenditures. The company's employee headcount as of December 29, 2024, was approximately 18,300.
In terms of revenue breakdown, China accounted for 31% of total revenue, followed by Korea at 25%, and Taiwan at 17%. The increase in revenue for the six months ended December 29, 2024, compared to the same period in 2023, was attributed to increases in equipment spending by customers across all market segments and higher customer support-related revenue.
The company's revenue was disaggregated between systems revenue, which amounted to $2.63 billion, and customer support-related revenue and other, totaling $1.75 billion for the quarter. The percentage of leading* and non-leading-edge equipment and upgrade revenue from the memory, foundry, and logic/integrated device manufacturing markets was also provided.
Lam Research's gross margin as a percentage of revenue was lower in the December 2024 quarter compared to the previous quarter, primarily due to unfavorable customer mix changes. However, the gross margin as a percentage of revenue in the six months ended December 29, 2024, compared to the same period in the prior year, improved due to better factory efficiencies, despite unfavorable customer mix changes, increased transformational charges, and higher employee-related expenses.
The company's research and development expenses for the quarter were $494.95 million, accounting for 11.3% of revenue. The percentage of revenue from the memory market segment increased in the December 2024 quarter compared to the previous quarter, primarily due to NAND investments by customers for equipment and upgrades.
Today the company's shares have moved 0.4% to a price of $81.05. For more information, read the company's full 10-Q submission here.
