Lam Research(LRCX) - 2025 Q3 - Quarterly Report

Revenue and Income - Revenue for the three months ended March 30, 2025, was $4,720.2 million, an increase of 8$4,376.0 million for the three months ended December 29, 2024[77]. - Net income for the March 2025 quarter was $1,330.7 million, compared to$1,191.0 million for the December 2024 quarter, reflecting a diluted net income per share increase from $0.92 to$1.03[77]. Gross Margin and Expenses - Gross margin as a percentage of total revenue increased to 49.0% in the March 2025 quarter from 47.4% in the December 2024 quarter, primarily due to favorable changes in customer and product mix[79]. - Gross margin for the quarter ended March 30, 2025, was $2,313.7 million, representing 49.0$525.9 million, accounting for 11.1% of revenue, slightly down from 11.3% in the previous quarter[87]. - Selling, General, and Administrative (SG&A) expenses decreased to $226.0 million in the March 2025 quarter, representing 4.8$3,035.3 million, up from $2,625.6 million in the December 2024 quarter, driven by strengthened investments in the Foundry market segment[83]. - Customer support-related revenue for the March 2025 quarter was$1,684.9 million, slightly down from $1,750.4 million in the December 2024 quarter[83]. Cash and Deferred Revenue - Cash, cash equivalents, and restricted cash decreased to$5.5 billion at the end of the March 2025 quarter from $5.7 billion at the end of the December 2024 quarter, primarily due to$504.0 million in principal payments on debt instruments[80]. - The deferred revenue balance at the end of the March 2025 quarter was $2,010.9 million, a slight decrease from$2,031.6 million at the end of the December 2024 quarter[77]. - Total gross cash, cash equivalents, and restricted cash balances were $5.5 billion as of March 30, 2025, down from$5.9 billion as of June 30, 2024[102]. Tax and Financial Agreements - The effective tax rate for the quarter ended March 30, 2025, was 13.4%, up from 11.7% in the previous quarter[96]. - The company entered into a Third Amended and Restated Credit Agreement in January 2025, increasing the unsecured revolving credit facility from $1.5 billion to$2.0 billion[109]. Share Repurchases and Cash Flow - The company incurred $2,130.0 million in share repurchases during the nine months ended March 30, 2025[102]. - Net cash provided by operating activities for the nine months ended March 30, 2025, was$3,619.1 million, with net income of $3,638.1 million[103]. - Anticipated cash flows from operations are expected to support operations, investments, and dividends for at least the next twelve months[107]. Employee and Market Outlook - Employee headcount as of March 30, 2025, was approximately 18,600, reflecting an increase in employee-related costs due to seasonality and higher headcount[80]. - The company anticipates strong wafer fabrication equipment spending levels in fiscal year 2025, driven by increases in both memory and non-memory market segments[74]. - The company is positioned to leverage technology inflections in the semiconductor industry, including 3D device scaling and advanced packaging chip integration, to drive sustainable growth[74]. Restructuring Charges - No restructuring charges were recorded during the nine months ended March 30, 2025, compared to$57.1 million in the same period of the prior year[92].