Lam Research(LRCX)2025-04-24 01:40Financial Data and Key Metrics Changes - Revenue for the March quarter was $4.72 billion, an increase of 8% from the prior quarter [25] - Gross margin for the March quarter was 49%, improving from 47.5% in the December quarter [34] - Operating margin in the March quarter was 32.8%, up from 30.7% in the December quarter [36] - Diluted earnings per share came in at $1.04, with a diluted share count of approximately 1.29 billion shares [39] - The company expects revenue for the June quarter to be $5 billion plus or minus $300 million [45] Business Line Data and Key Metrics Changes - Memory systems revenue accounted for 43% of total systems revenue, down from 50% in the prior quarter [26] - Foundry systems revenue represented 48% of total systems revenue, up from 35% in the December quarter, marking a new record [29] - DRAM systems revenue was 23% of total systems revenue, down from 26% in the December quarter [28] - Logic and Other systems revenue was 9%, down from 15% in the prior quarter [31] Market Data and Key Metrics Changes - The China region accounted for 31% of total revenue, flat from the prior quarter [32] - Taiwan and Korea each represented 24% of revenue in the March quarter, with Taiwan achieving a new record in dollar terms [32] - The customer support business group generated approximately $1.7 billion in revenue for the March quarter, down slightly from the December quarter but up 21% year-over-year [33] Company Strategy and Development Direction - The company aims to expand its served market faster than overall wafer fabrication equipment (WFE) growth, driven by increased semiconductor device complexity [11] - The company plans to gain market share with a strong product portfolio targeting billion-dollar technology inflections [12] - The focus remains on delivering new products, advanced services, and digital transformation initiatives to achieve growth and profitability goals [11] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to outperform overall semiconductor industry growth in the coming years [22] - The company is closely monitoring the dynamic tariff and global economic environment but has not seen significant changes in customer plans [10] - Management expects gross margins to expand again in the June quarter [8] Other Important Information - The company allocated $347 million to open market share repurchases and paid $296 million in dividends during the March quarter [38] - Capital expenditures in the March quarter were $288 million, driven by investments in lab expansions and manufacturing growth [43] - The company ended the March quarter with approximately 18,600 full-time employees, an increase of about 300 from the prior quarter [44] Q&A Session Summary Question: Sustainability of NAND upgrades beyond June - Management sees a significant portion of the industry's bits still needing upgrades, indicating strong momentum for NAND upgrades [54][56] Question: Sustainability of Taiwan revenues - Management confirms that the strong performance in Taiwan is sustainable due to investments in new tooling and technology inflections [60][62] Question: Steps to limit tariff impacts - Management emphasizes the flexibility of their global manufacturing and supply chain operations to mitigate tariff impacts [68][71] Question: Second half revenue expectations - Management indicates that the second half is expected to be first-half weighted due to lost business from restricted Chinese customers [74][76] Question: Gross margin sustainability - Management acknowledges variability in gross margins based on customer and product mix, but does not provide specific guidance on future levels [92][94] Question: Impact of tariffs on gross margin guidance - Management confirms that the impact of tariffs is factored into the gross margin guidance but does not quantify it [155][156]