Stock Monitor: KLA-Tencor Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 29, 2018 / Active-Investors.com has just released a free earnings report on Lam Research Corp. (NASDAQ: LRCX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LRCX. Lam Research reported its second quarter fiscal 2018 operating and financial results on January 24, 2018. The semiconductor equipment maker surpassed top- and bottom-line expectations and provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for KLA-Tencor Corporation (NASDAQ: KLAC), which also belongs to the Technology sector as the Company Lam Research. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lam Research most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=LRCX

Earnings Highlights and Summary

For the quarter ended December 24, 2017, Lam Research reported revenue of $2.58 billion, up 37.2% compared to revenue of $1.88 billion in Q2 FY17. The Company's revenue numbers topped analysts' expectations of $2.57 billion.

During Q2 FY18, Lam Research's gross margin totaled $1.21 billion, or 46.7% of revenue, compared to gross margin of $846.80 million, or 45.0% of revenue, in Q2 FY17. The Company's operating expenses came in at $468.20 million and operating margin was 28.6% of revenue for the reported quarter versus operating expenses of $406.97 million and operating margin of 23.4% of revenue for the year earlier quarter. For Q2 FY18, Lam Research's non-GAAP gross margin was $1.23 billion, or 47.6% of revenue, non-GAAP operating expenses were $449 million and non-GAAP operating margin was 30.2% of revenue.

Lam Research posted GAAP net loss of $9.96 billion, or $0.06 per diluted share, compared to GAAP net income of $332.79 million, or $1.81 per diluted share, in Q2 FY17. The Company's reported quarter results were negatively impacted by a one-time provisional charge of $757 million associated with the recently enacted US tax reform. Lam Research's non-GAAP net income was $788 million, or $4.34 per diluted share, in Q2 FY18 ahead of Wall Street's estimates of $3.68 per share.

Balance Sheet and Cash Flow Results

Lam Research's cash and cash equivalents, short-term investments, and restricted cash and investments balance decreased to $6.0 billion at the end of Q2 FY18 compared to $6.4 billion at the end of Q1 FY18.

Lam Research's cash flow from operating activities totaled $29 million during Q2 FY18, down from $858 million in Q1 FY18. The low cash generation during the reported quarter was a result of the timing of certain receivables as well as a growth in inventory to support the strong shipments the Company had observed during Q4 FY17.

Lam Research's uses of cash during the reported quarter included approximately $1.11 billion of share repurchases, including net share settlement on employee stock-based compensation; approximately $206 million of purchases of available-for-sale securities, approximately $85 million of capital expenditures, and approximately $73 million of dividends paid to stockholders; partially offset by approximately $799 million of net proceeds on short-term borrowings.

Lam Research's day sales outstanding increased to 80 days in Q2 FY18 versus 56 in Q2 FY17. The Company's Inventory turns came in at 3.6 in the reported quarter compared to 4 in the prior quarter.

Lam Research's deferred revenue at the end of Q2 FY18 increased to $1.1 billion compared to $938 million at the end of Q1 FY18. The Company's deferred profit at the end of the reported quarter increased to $749 million compared to $598 million at the end of the previous quarter. Lam Research's deferred revenue balance does not include shipments to Japanese customers, to whom title does not transfer until customer acceptance. The Company's estimated future revenue from shipments to Japanese customers was approximately $289 million as of December 24, 2017, and $344 million as of September 24, 2017.

Outlook

For Q3 FY18, Lam Research is forecasting revenues to be approximately $2.85 billion, plus or minus $125 million. The Company is projecting net income per diluted share to be in the range of $3.95 to $4.25 and non-GAAP earnings are expected to be in the band of $4.20 to $4.50 per share.

Stock Performance Snapshot

January 26, 2018 - At Friday's closing bell, Lam Research's stock rose 1.67%, ending the trading session at $202.57.

Volume traded for the day: 4.74 million shares, which was above the 3-month average volume of 2.91 million shares.

Stock performance in the last month ? up 9.91%; previous six-month period ? up 22.95%; past twelve-month period ? up 77.18%; and year-to-date ? up 10.05%

After last Friday's close, Lam Research's market cap was at $32.84 billion.

Price to Earnings (P/E) ratio was at 18.49.

The stock has a dividend yield of 0.99%.

The stock is part of the Technology sector, categorized under the Semiconductor Equipment & Materials industry. This sector was up 1.6% at the end of the session.

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