Lam Research Corporation (NASDAQ: LRCX) has reported the adjusted earnings per share of $3.46, beating the analysts’ estimates for the adjusted earnings per share of $3.27. The company had reported the adjusted revenue growth of 51.8 percent to $2.48 billion in the first quarter of FY 18, beating the analysts’ estimates for revenue of $2.46 billion. The shipments fell 6 percent to $2.38 billion.
Moreover, the cash and cash equivalents, short-term investments, and restricted cash and investments balances have increased slightly to $6.4 billion at the end of the first quarter compared to $6.3 billion at the end of the June 2017 quarter. The cash flows from operating activities during the September 2017 quarter of $858 million were primarily utilized for approximately $155 million of share repurchases, including net share settlement on employee stock-based compensation, approximately $302 million of principal payments on debt, primarily related to the convertible notes, approximately $73 million of dividends paid to stockholders, approximately $60 million of capital expenditures, and approximately $116 million related to a business acquisition.
Additionally, the deferred revenue at the end of the September 2017 quarter has decreased to $938 million as compared to $966 million at the end of the June 2017 quarter. The deferred profit at the end of the September 2017 quarter has decreased to $598 million as compared to $608 million at the end of the June 2017 quarter. Lam’s deferred revenue balance does not include shipments to Japanese customers, to whom title does not transfer until customer acceptance. The estimated future revenue from shipments to Japanese customers was approximately $344 million as of September 24, 2017 and $397 million as of June 25, 2017.
For the second quarter of FY 18, LRCX expects the earnings per share to be in the range of $3.53 to $3.77, well ahead of the $3.34 that Wall Street is looking for. The company also expects Q2 revenues to be between $2.45 and $2.65 billion, in-line with analysts’ $2.51 billion estimate.
LRCX stock has risen 98.08% in a year (source: Google Finance).