Lam Research trades down despite FQ2 revenue and net income surge
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Lam Research (LRCX
-6.4%) missed the FQ2 revenue consensus despite reporting a 22.3% surge in its Y/Y revenue growth led by 18.8% growth in System revenue and 29.4% growth in customer support-related revenue.
Deferred revenue increased to $1,458M compared to $1,110M as of the end of the September 2021 quarter.
Geographically, revenue was led by China (26%) followed by Korea (25%) and Taiwan (18%); Japan (12%), Southeast Asia (9%), U.S. (6%) and Europe (4%) follow.
U.S. GAAP gross margin of 46.8% ($1,978M) compared to 45.9% of revenue ($1,977M) in prior quarter, operating income as a percentage of revenue was 31.7% (vs. 31.9% of revenue), and diluted EPS was $8.44.
In its Customer Support Business Group (CSBG), CY21 ending chamber count of ~75K units (+13% Y/Y); revenue per chamber grew nearly twice the growth of chamber count, at ~24% Y/Y.
Net income stood at $1,195M or $8.44/share on GAAP basis compared to $1,180M, or $8.27/share for the quarter ended Sep.26, 2021 or $869.23M or $5.96/share in year ago quarter.
Cash and equivalents, short-term investments, and restricted cash and investments balances increased to $5.6B at the end of quarter compared to $4.9B at the end of September quarter.
"While supply chain conditions worsened in late December and are causing near-term impacts to our results, we expect wafer fabrication equipment investments to again increase in CY22, leading to another strong growth year for Lam," president & CEO Tim Archer commented.
Outlook:

In past 1-month, the stock has lost 14.6% while YTD the stock is down 17%.