Lam Research Reports Strong Financials and Strategic Investments in Q1 2024

Lam Research Corporation, a leading semiconductor equipment manufacturer, has released its financial results for the quarter ended December 31, 2023, showcasing robust performance amid global market dynamics.
LAM Research revenue December 2023The company disclosed that its revenue for the quarter reached $3,758 million, with a gross margin of $1,757 million, representing 46.8 percent of total revenue. Operating expenses amounted to $700 million, resulting in an operating income of 28.1 percent of revenue. Net income for the quarter was reported at $954 million.

Comparing these figures to the previous quarter ending September 24, 2023, Lam Research exhibited growth, with revenue increasing from $3,482 million to $3,758 million. Despite a slightly lower gross margin of $1,655 million (47.5 percent of revenue), the company maintained a solid financial position with operating income at 29.4 percent of revenue and a net income of $887 million, or $6.66 per diluted share.

A notable shift in revenue distribution was observed during the December 2023 quarter. The geographic breakdown is as follows: China 40 percent, Korea 19 percent, Japan 14 percent, Taiwan 13 percent, United States 5 percent, Europe 5 percent, and Southeast Asia 4 percent. Lam’s revenue from China declined to 40 percent in the December quarter, compared to 48 percent in the prior quarter, attributed to U.S. export restrictions.

Lam Research’s capital expenditure (Capex) during this period reached $115 million, reflecting the company’s commitment to ongoing investments in its operations and technology.

Tim Archer, President and Chief Executive Officer of Lam Research, emphasized the company’s strategic position for future growth, stating, “With our investments in extending product differentiation and building a flexible and efficient global infrastructure, we are in a strong position to benefit as innovations such as AI power robust semiconductor industry growth in the years to come.”

Looking ahead, Lam Research is optimistic about its performance in the quarter ending March 31, 2024, providing guidance of $3.7 billion in revenue, with operating income expected to be 28.1 percent of revenue. The company remains focused on navigating the dynamic semiconductor landscape and leveraging its investments for sustained success.