Lam Research Corporation (NASDAQ:LRCX) stock fell 0.26% (As on Apr 21, 11:35:35 AM UTC-4, Source: Google Finance) after the company missed the analysts’ expectations for the first quarter of FY 22. For the March 2022 quarter, non-GAAP gross margin was $1,815 million, or 44.7% of revenue, non-GAAP operating expenses were $621 million, non-GAAP operating income was 29.4% of revenue, and non-GAAP net income was $1,036 million. This compares to non-GAAP gross margin of $1,979 million, or 46.8% of revenue, non-GAAP operating expenses of $627 million, non-GAAP operating income of 32.0% of revenue, and non-GAAP net income of $1,207 million for the December 2021 quarter. Cash and cash equivalents, short-term investments, and restricted cash and investments balances decreased to $4.6 billion at the end of the March 2022 quarter compared to $5.6 billion at the end of the December 2021 quarter. This decrease was primarily the result of $1.3 billion of share repurchases, including net share settlement of employee stock-based compensation; $211 million of dividends paid to stockholders; and $145 million of capital expenditures, partially offset by $758 million of cash generated from operating activities. Deferred revenue at the end of the March 2022 quarter increased to $2,069 million compared to $1,458 million as of the end of the December 2021 quarter. Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptances. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $263 million as of March 27, 2022 and $328 million as of December 26, 2021.

Moreover, March quarter results down modestly due to supply chain impact on Reliant and upgrades businesses. The company secured spares contracts at two of the world’s largest IDMs with cumulative contract value >$1B.

LRCX in the first quarter of FY 22 has reported the adjusted earnings per share of $7.4, missing the analysts’ estimates for the adjusted earnings per share of $7.51. The company had reported the adjusted revenue of $4.06 billion in the first quarter of FY 22, missing the analysts’ estimates for revenue of $4.25 billion.

For June 2022, the company expects revenue to be $4.20B +/- $300M, Non-GAAP gross margin to be 44.5% +/- 1% and Non-GAAP operating margin to be 29.5% +/- 1%.