briankerecz
22 years ago
Lam Research Corporation Announces 2002 Fourth Quarter and Year-End Results
FREMONT, Calif.--(BUSINESS WIRE)--July 23, 2002--Lam Research Corporation (Nasdaq:LRCX - News) today announced financial results for the fourth quarter and year ended June 30, 2002. Revenues of $180.3 million in the June quarter were 10 percent higher than the March 2002 quarter. Net loss for the quarter was $31.0 million, or $0.24 per diluted share, including a non-taxable loss of $26.0 million on equity derivative contracts in Lam stock (Other Income/Expense) and a restructuring reserve recovery of $4.1 million ($1.7 million in Cost of Goods Sold and $2.4 million in Operating Expenses). This compares to net income of $1.6 million, or $0.01 per diluted share, in the March 2002 quarter, which included a non-taxable gain of $16.8 million on equity derivative contracts in Lam stock. Excluding the loss from the equity derivative contracts and restructuring reserve recovery, the June 2002 quarter net loss was $7.9 million, or $0.06 per diluted share.
New orders of $234 million increased by 41.0 percent sequentially. Regional distribution of new orders was North America, 16 percent; Europe, 21 percent; Japan, 5 percent; and Asia Pacific, 58 percent.
Geographical breakdown of revenue for the quarter was North America, 38 percent; Europe, 15 percent; Japan, 14 percent; and Asia Pacific, 33 percent. Shipments for the period were approximately $198 million.
Excluding restructuring reserve recovery, gross margin for the June 2002 quarter was $64.7 million or 35.9 percent of revenue, compared to $55.0 million or 33.5 percent of revenue in the previous quarter, reflecting efficiencies gained from higher volumes and the favorable impact of cost reductions.
Excluding restructuring reserve recovery, operating expenses of $76.0 million were $1.4 million lower than the prior quarter. Increased investments in product development activities were offset by lower SG&A costs.
Cash, Short-term Investments, and Restricted Cash totaled $945.2 million at the end of June 2002, an increase of $43.6 million over the prior quarter, principally from improvements in accounts receivable turnover.
"Current business activities reflect the ongoing investment in leading-edge capacity by our customers," stated James W. Bagley, chairman and chief executive officer. "Semiconductor manufacturers are developing several next-generation technologies, particularly for sub-90-nm processes involving 193-nm resists, where our 2300(TM) Etch Series systems are demonstrating flexibility and cost-effectiveness in implementing challenging integration schemes. In CMP, we believe our Teres® systems are demonstrating superior results when planarizing new materials such as low k and copper. We expect the requirements for these advanced technologies to continue to drive capital investment and provide new market share opportunities for the Company," Bagley concluded.
Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to future market conditions, the prospective demand for the Company's products, market share opportunities, process results and our customers' plans for capital investment and technology development. Such statements are based on current expectations and are subject to risks, uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including specifically the report on Form 10-K for the year ended June 24, 2001 and the Form 10-Q for the quarter ended March 31, 2002, which could cause actual results to vary from expectations. The company undertakes no obligation to update the information or statements made in this press release.
Lam Research Corporation is a leading supplier of wafer processing equipment and services to the worldwide semiconductor manufacturing industry. The Company's common stock trades on the Nasdaq National Market under the symbol "LRCX." Lam's World Wide Web address is http://www.lamrc.com.
Consolidated Financial Tables to Follow
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30, June 24, June 30, June 24,
2002 2001 2002 2001
---------- ---------- ---------- ----------
(unaudited) (unaudited)
Total revenue $ 180,256 $ 365,536 $ 943,114 $1,519,789
Cost and expenses:
Cost of goods sold 115,586 213,790 632,319 862,321
Cost of goods sold --
restructuring
charges -- 3,989 7,600 3,989
Cost of goods sold --
on restructuring
recovery (1,674) -- (1,674) --
Cost of goods sold --
Varian settlement -- -- 38,780 --
---------- ---------- ---------- ----------
Gross margin 66,344 147,757 266,089 653,479
Research and
development 41,701 53,204 179,217 227,248
Selling, general and
administrative 34,322 48,872 161,860 218,919
Restructuring charges -- 12,780 47,221 12,780
Restructuring charge
recovery (2,371) -- (2,371) --
Purchased technology
for research and
development -- -- -- 8,000
---------- ---------- ---------- ----------
Operating income
(loss) (7,308) 32,901 (119,838) 186,532
Other income
(expense):
Loss on equity
derivative contracts
in Lam stock (25,954) -- (8,236) --
Other income, net 35 3,107 79 15,102
---------- ---------- ---------- ----------
Income (loss) before
income tax expense (33,227) 36,008 (127,995) 201,634
Income tax expense
(benefit) (2,182) 10,802 (37,944) 60,497
---------- ---------- ---------- ----------
Income (loss) before
cumulative effect of
a change in
accounting principle (31,045) 25,206 (90,051) 141,137
Cumulative effect of
the application of
EITF 00-19,
"Derivative Financial
Instruments Indexed
to, and Potentially
Settled in, a
Company's Own Stock,
no related tax -- 33,074 -- 33,074
Cumulative effect of
the application of
SAB 101, "Revenue
Recognition in
Financial
Statements", net of
$81,441 related tax
benefit effect -- -- -- (122,105)
---------- ---------- ---------- ----------
Net income (loss) $ (31,045) $ 58,280 $ (90,051) $ 52,106
========== ========== ========== ==========
Net income (loss) per
share:
Basic
Income (loss) before
cumulative effect
of change in
accounting
principle $ (0.24) $ 0.20 $ (0.71) $ 1.14
Cumulative effect of
change in
accounting
principle,
application of EITF
00-19 $ -- $ 0.27 $ -- $ 0.27
Cumulative effect of
change in
accounting
principle,
application of SAB
101 $ -- $ -- $ -- $ (0.99)
---------- ---------- ---------- ----------
Basic net income
(loss) per share $ (0.24) $ 0.47 $ (0.71) $ 0.42
========== ========== ========== ==========
Diluted(1)
Income (loss) before
cumulative effect
of change in
accounting
principle $ (0.24) $ 0.19 $ (0.71) $ 1.07
Cumulative effect of
change in
accounting
principle,
application of
EITF 00-19 $ -- $ 0.25 $ -- $ 0.25
Cumulative effect of
change in
accounting
principle,
application of SAB
101 $ -- $ -- $ -- $ (0.92)
---------- ---------- ---------- ----------
Diluted net income
(loss) per share $ (0.24) $ 0.44 $ (0.71) $ 0.39
========== ========== ========== ==========
Number of shares used
in per share
calculation:
Basic 127,661 124,343 126,356 123,856
========== ========== ========== ==========
Diluted (1) 127,661 133,531 126,356 132,243
========== ========== ========== ==========
(1) For the three and twelve-month periods ended June 30, 2002,
options, warrants and convertible notes were outstanding, but were
excluded from the computation of diluted net loss per common share
because the effect would have been antidilutive due to the net
loss for the periods. For the three and twelve-month periods ended
June 24, 2001, diluted net income per share includes the assumed
exercise of employee stock options. The assumed conversion of the
convertible subordinated notes was antidilutive and therefore
excluded from the computation of diluted net income per share.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 24,
2002 2001
(1) (1)
---------- ----------
Assets:
Cash and short-term investments $ 874,205 $ 864,559
Accounts receivable, net 132,113 248,910
Inventories 180,799 284,757
Other current assets 168,307 178,380
---------- ----------
Total current assets 1,355,424 1,576,606
Equipment/leasehold improvements, net 67,496 126,533
Restricted cash 70,983 60,800
Other assets 138,388 107,836
---------- ----------
Total assets $1,632,291 $1,871,775
========== ==========
Liabilities and stockholders' equity:
5% convertible debenture $ 309,763 $ --
Other current liabilities 287,781 499,684
---------- ----------
Total current liabilities 597,544 499,684
5% convertible debenture -- 309,763
Other long-term debt and liabilities 359,691 349,955
Stockholders' equity 675,056 712,373
---------- ----------
Total liabilities and stockholders' equity $1,632,291 $1,871,775
========== ==========
(1) Derived from audited financial statements