Company profile

Ticker
LRCX
Exchange
CEO
Timothy M. Archer
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
942634797

LRCX stock data

(
)

Calendar

20 Aug 19
21 Oct 19
28 Jun 20

News

Company financial data Financial data

Quarter (USD) Dec 18 Sep 18 Jun 18 Mar 18
Revenue 2.52B 3.13B 2.89B
Net income 568.86M 533.36M 1.02B 778.8M
Diluted EPS 3.51 3.22 5.72 4.33
Net profit margin 22.55% 32.67% 26.93%
Operating income 690.38M 591.75M 955.2M 827.51M
Net change in cash -186.74M 2.95B
Cash on hand 3.36B 4.51B 4.7B
Cost of revenue 1.38B 1.27B 1.65B 1.56B
Annual (USD) Jun 19 Jun 18 Jun 17 Jun 16
Revenue 9.65B 11.08B 8.01B 5.89B
Net income 2.19B 2.38B 1.7B 914.05M
Diluted EPS 13.7 13.17 9.24 5.22
Net profit margin 22.70% 21.49% 21.19% 15.53%
Operating income 2.46B 3.21B 1.9B 1.07B
Net change in cash -854.04M 2.13B -2.66B 3.54B
Cash on hand 3.66B 4.51B 2.38B 5.04B
Cost of revenue 5.3B 5.91B 4.41B 3.27B

Financial data from company earnings reports

Financial report summary

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Risks
  • The Semiconductor Capital Equipment Industry Is Subject to Variability and Periods of Rapid Growth or Decline; We Therefore Face Risks Related to Our Strategic Resource Allocation Decisions
  • Future Declines in the Semiconductor Industry, and the Overall World Economic Conditions on Which It Is Significantly Dependent, Could Have a Material Adverse Impact on Our Results of Operations and Financial Condition
  • Our Revenues and Operating Results Are Variable
  • We May Incur Impairments to Goodwill or Long-lived Assets
  • Our Credit Agreements Contain Covenant Restrictions That May Limit Our Ability to Operate Our Business
  • We Have a Limited Number of Key Customers
  • We Depend on Creating New Products and Processes and Enhancing Existing Products and Processes for Our Success; Consequently, We Are Subject to Risks Associated with Rapid Technological Change
  • We Are Subject to Risks Relating to Product Concentration and Lack of Product Revenue Diversification
  • Strategic Alliances and Customer Consolidation May Have Negative Effects on Our Business
  • We Depend on a Limited Number of Key Suppliers and Outsource Providers, and We Run the Risk That They Might Not Perform as We Expect
  • We Face Risks Related to the Disruption of Our Primary Manufacturing Facilities
  • Once a Semiconductor Manufacturer Commits to Purchase a Competitor’s Semiconductor Manufacturing Equipment, the Manufacturer Typically Continues to Purchase That Competitor’s Equipment, Making It More Difficult for Us to Sell Our Equipment to That Customer
  • We Face a Challenging and Complex Competitive Environment
  • Our Future Success Depends Heavily on International Sales and the Management of Global Operations
  • Our Ability to Attract, Retain, and Motivate Key Employees Is Critical to Our Success
  • Certain Critical Information Systems, That We Rely on for the Operation of Our Business and Products That We Sell, Are Susceptible to Cybersecurity and Other Threats or Incidents
  • Our Financial Results May Be Adversely Impacted by Higher than Expected Tax Rates or Exposure to Additional Tax Liabilities
  • A Failure to Comply with Environmental Regulations May Adversely Affect Our Operating Results
  • If We Choose to Acquire or Dispose of Businesses, Product Lines, and Technologies, We May Encounter Unforeseen Costs and Difficulties That Could Impair Our Financial Performance
  • The Market for Our Common Stock Is Volatile, Which May Affect Our Ability to Raise Capital or Make Acquisitions or May Subject Our Business to Additional Costs
  • Intellectual Property, Indemnity, and Other Claims Against Us Can Be Costly and We Could Lose Significant Rights That Are Necessary to Our Continued Business and Profitability
  • We May Fail to Protect Our Critical Proprietary Technology Rights, Which Could Affect Our Business
  • We Are Exposed to Various Risks from Our Regulatory Environment
  • There Can Be No Assurance That We Will Continue to Declare Cash Dividends or Repurchase Our Shares at All or in Any Particular Amounts
Management Discussion
  • Revenue decreased in fiscal year 2019 compared to fiscal year 2018, but increased compared to fiscal year 2017, primarily as a result of the volatility of semiconductor capital investments by our customers. The overall Asia region continued to account for a majority of our revenues as a substantial amount of the worldwide capacity investments for semiconductor manufacturing continued to occur in this region.
  • Our deferred revenue balance was $449 million as of June 30, 2019, compared to $994 million as of June 24, 2018. The deferred revenue at the end of June 2019 is recognized under Accounting Standard Codification (“ASC”) 606, while the same values as of June 2018 are recognized under ASC 605, which contributes to the change in value period over period. Our deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of customer acceptance. The anticipated future revenue value from shipments to customers in Japan was approximately $78 million as of June 30, 2019, compared to $607 million as of June 24, 2018.
  • The decrease in gross margin as a percentage of revenue for fiscal year 2019 compared to fiscal year 2018 was primarily due to lower factory utilization.
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