Earnings
Lam Research tops its own guidance as China rises to 35% of sales
The chip-equipment maker posted $8.22 billion in September-quarter revenue and guided to $8.60 billion for the December quarter, while its China mix jumped nine points.
HedgeWeekly News Desk ·
Lam Research reported revenue of $8.22 billion for the quarter ended September 27, up 22% from the June quarter, according to results filed with the SEC on Wednesday. The total came in above the $8.10 billion midpoint the company had set in July, and non-GAAP diluted earnings of $2.20 a share beat its own $2.15 midpoint.
Profitability improved alongside sales. Non-GAAP gross margin rose to 52.4% from 52.0% in the June quarter, and non-GAAP operating margin widened to 40.2% from 38.4%. Chief Executive Tim Archer attributed the record revenue and earnings to AI-related chip demand and rising device complexity.
The regional mix shifted sharply. China accounted for 35% of revenue, up from 26% a quarter earlier, ahead of Korea at 20% and Taiwan at 18%; the United States contributed 8%. Lam spent about $1.02 billion on share repurchases and paid $325 million in dividends, and declared a $0.33 quarterly dividend.
Why it matters: Lam guided December-quarter revenue to $8.60 billion, plus or minus $400 million, with diluted EPS of $2.33 and operating margin of 40.5%, signalling another sequential step up for wafer-fab spending. For funds positioned in semiconductor equipment, the nine-point jump in China's share concentrates exposure to a single market in one quarter; the December-quarter regional split will show whether that level holds.