Lam Research(LRCX) - 2024 Q2 - Quarterly Report

Revenue and Income - Revenue for the December 2023 quarter was $3,758.3 million, an increase of 8$3,482.1 million in the September 2023 quarter, primarily driven by increased investments in the DRAM market segment[79]. - Net income for the December 2023 quarter was $954.3 million, compared to$887.4 million in the September 2023 quarter, resulting in diluted net income per share of $7.22, up from$6.66[79]. Gross Margin and Expenses - Gross margin for the December 2023 quarter was $1,757.5 million, representing 46.8$700.2 million, an increase from 631.7 million in the September 2023 quarter, primarily due to higher employee-related costs[79][80]. - Research and Development (R&D) expenses for the three months ended December 24, 2023, were 469,712 thousand, accounting for 12.5% of revenue, up from 12.1% in the previous quarter[87]. - Selling, General, and Administrative (SG&A) expenses for the three months ended December 24, 2023, were $228,843 thousand, or 6.1$16,645 thousand, representing 0.4% of revenue, an increase from 0.3% in the previous quarter[91]. Cash Flow and Investments - Cash and cash equivalents, investments, and restricted cash and investments increased to $5.6 billion at the end of the December 2023 quarter, up from$5.2 billion at the end of the September 2023 quarter[81]. - Net cash provided by operating activities for the six months ended December 24, 2023, was $2,405,003 thousand, with a net income of$1,841,664 thousand[107]. - Net cash used for investing activities during the six months ended December 24, 2023, was $176.6 million, primarily due to$192.3 million in capital expenditures[108]. - Net cash used for financing activities during the six months ended December 24, 2023, was $2.2 billion, mainly from$1,488.7 million in treasury stock repurchases and $494.7 million in dividends paid[109]. Deferred Revenue and Workforce - The deferred revenue balance increased to$1,928.0 million at the end of the December 2023 quarter, up from $1,690.4 million at the end of the September 2023 quarter, mainly due to an increase in advanced deposits[79]. - Employee headcount as of December 24, 2023, was approximately 17,200[81]. - The company incurred a charge of approximately$107.1 million for workforce actions associated with a restructuring plan in the second half of fiscal year 2023[77]. Future Outlook and Risks - The company expects to incur expenditures in the range of $300 million for business process improvements and restructuring activities throughout the 2024 fiscal year[77]. - The company expects anticipated cash flows from operations to be sufficient to support operations and investments for at least the next twelve months[110]. - Future liquidity will heavily depend on future revenues and cost management based on product demand[111]. - The company has substantial cash balances but may require additional funding through borrowings or sales of debt/equity securities[111]. - Access to capital markets is expected to be adequate for meeting objectives, though macroeconomic conditions may pose challenges[111]. - Market risk exposure related to interest rates, equity prices, and foreign currency exchange rates has not changed materially since June 25, 2023[112].