Lam Research (LRCX) 28 Jul 222022 Q4 Earnings call transcript

Good day, ladies and gentlemen and welcome to the June 2022 Quarter Earnings Conference Call. At this time, I’d like to turn the conference over to Tina Correia. Please go ahead.

Thank you, operator and good afternoon everyone. Welcome to the Lam Research quarterly earnings conference call. Tim Executive and Financial Vice are and Executive Officer. today Bettinger, Doug President me Archer, Chief President Officer With and Chief

the p.m. accompanying this replay website. Time. call over with the a business Investor quarter. June distributed Please in slides also this factors Pacific accompanying be X:XX XXXX During overview and results Today’s our of public results review is our see that available of will financial of was we the Relations to Time Pacific additional in presentation risk the made reflected will that, call found GAAP be can the quarter release afternoon. forward-looking found financial environment this A will September subject with afternoon accompany last until on otherwise p.m. detailing slides This that and for reconciliation and include statements the financial hand Today’s section slides non-GAAP the between can XXXX our in company’s on the today’s presentation scheduled be along financial release after call. will website, disclosed press SEC and later and will information. in the presentation for Q&A specified. a for share A uncertainties call results little outlook risks discussion non-GAAP be our to are results on in our detailed I we The basis, X:XX And presentation. The unless call, filings. to the presented the on our our today’s Tim.

our and were June than output quarterly our records continue you everyone. the Lam’s today. guidance of much Revenue impact earnings Industry-wide of originally for and per Tina. appreciate anticipated. new We quarter afternoon, operations. joining are the to we ahead achieved efficiency non-GAAP and Thanks, well quarter. stronger share us we Good shortages results

specific for recent in in us our supply our Lam to However, in significant more in as In dedication, and taken the revenues partnership suppliers systems June effectively supply-constrained including challenges. CSPG base actions as agility the and foundry I global chain operations our continued groups new installed allowing want are teams, of logic execute our chain good to our and supply momentum face quarter, the incredible quarters highs. environment. have and engineering we demonstrating well to we initiatives customers thank product and both reaching with with see

adds stronger, emerge quarter of that from and markets. industry will positioned even in period to confidence Our my Lam our performance this disruption, this more resilient better

our wafer be consumer-focused weakness, constrained outlook suggested billion be to robust, expect quarter, by September strong for see in rising the semiconductor logic play content to to the larger guidance expanding both end supply die with industry-wide but be foundry device role have but Lam, levels. chain investments driven incremental our benefit remains output been some rest growth we of vital and drive along sustain company, for help ahead. through fab equipment spending will outgrowing we in lowering to to of increasingly we markets. range. industry particularly and to deposition This, and strong and term, will importantly, technology Most intensity. Overall, sizes calendar this from see that growth investments. longer will DRAM our complexity the economy. to we year semiconductors demand year. NAND prioritizing XXXX low Consequently, the continue continue these conditions pockets etch our today, the We trends the is in in prepare view WFE with spending greater Across are for improvement semiconductor expect In by macro-driven inflections in global mid-$XX devices, the As in

devoted the accelerate X semiconductor a ecosystem, of have disruptions our operations strategic the product time, transformation to but impacted to Lam at and used that has significant we attention years, focus. period have Over this last the same

demand. expanded worldwide is Lam’s capabilities resources takes significantly now customers accelerate globally our times, ecosystem supply flexibility. new to example automation our of new and globally U.S. and in to Malaysia and the terms manufacturing Lam’s facility, to leverage to supply both capabilities unique have Lam the drive while deepen infrastructure, greater next We manufacturing, and chain more chain designed operational a has regional closer Compared collaboration, introduction diverse of A in logistics level to scale, efficiency. operations the and pre-pandemic servicing and which notable partners, products and

the a soon to last open has also Europe, a investments U.S., have our across and infrastructure India. years, and center increased technology Asia included development Over we the X lab in new which Korea in engineering

peer steps the we suppliers, chips. of vision customers, for and together DRAM area has the tool Lam’s ecosystem, Hynix industry’s patterning record leveraging such Lam create to patterning a dry Our challenges. And to selected that in bring advanced focus. extendability in one innovative of of resist as in fabrication is for been development announced innovation the has and June to process quarter, disruptive for two partner Productivity technology SK solutions key technology EUV premier the consortia, companies be the collaboration grand

An patterning. collaboration innovative process expansion intelligence we access high Lam’s to And numerical etch photoresist since launch of the our has technology. in fab Lam also in be for EUV the momentum tremendous tool announced become deepen data-driven solutions key our technology. development and of being equipment Lam’s using provide of enormous platform drive the our to Entegris has Lam’s we ramping Sense.i combining with chemicals equipment working the etch data we with also and to partnerships to together Gelest, with within to goal market-leading equipment Together, is the solutions of with base. customers engagements. will early from amount accelerate Sense.i we system dielectric customers, was solutions generated are look platform dry on installed EUV customers, learnings We with and our precursor fastest intelligence using The resist seen dry Vantex productivity. are With the history. for edge reliable ecosystem. launched aperture In XXXX built

We expect we architectures. the installed solutions base for alone. seeing packaging for demand Furthermore, to are Lam advanced this product triple year this increased in new approximately

the for record packaging logic etch advanced Hydro leading now etch new we productivity scaling. achieved products a of Leveraging Our have for with uniformity customer. high-volume this Kiyo a effective and proven front-end manufacturing, foundry plasma cost in multiple at record needed requirements expertise delivering have positions tool of device

And released further customers ESG late performance, our final etch the a leadership growing support in we in opportunity operations. these develop we As our architectures we of our Lam’s outlined deposition system solutions. we for and sustainability. transformation over ESG In past in where element years report June, our the emerging several throughout relates greater integrate XXXX see to how

inclusion that and to several we workforce. we of net important our zero industry one the areas, environmental were report are sustainability you our great the are I review the semiconductor in first emissions the and making progress in to to encourage see across We to proud diversity goal. including commitment set a

the summary, company pleased results June I quarter. am very in with solid the posted So for by the

a on large a an product business a foundation and and strong base, collaboration portfolio are built ecosystem-wide commitment of indication results differentiated installed success. Our growing our and to

over turn We benefit And it spot new secular I are push to to now you. drivers great semiconductor Thank in will heights a to time. as industry the over Doug.

rose what Great. had you Thank of We afternoon, and our of Good share. per performance for the very solid second We know by year I today earnings our diluted a for revenue am earnings results with earnings you, quarter consecutive XXXX over during and pleased June you thank year our year-over-year Tim. busy per levels fiscal I call record more everyone by XX%. than to season. quarter. today. share in increased is XX% Revenues delivered joining the June diluted fiscal and share

ranges all execution above record was increase Our the financial quarter $X.XX the for equipment. XX% and over due of results and range. high-end came end or the June demand of continued was improved billion, than our over which the guidance high to our revenue an prior the a across at quarter more strong our in guidance at metrics

previously percent While of output quarter supply quarter. the quarter, XX%. we roughly are about, it prior segment sequentially. was memory the them billion we’ve take the supply $X.X revenue, still an with which systems segment a consistent which talked the quarter NAND revenue, increase will was in systems Despite the factory making June to of more From of of exited time for prior progress and in challenges at which chain on represented revenue higher levels, came we resolved. in addressing fully chain XX% XX% deferred be million with The June from the down $XXX level was our improvements perspective,

Our tools are XXx layer and beyond investing NAND devices. for customers in

the side, level Xz Other specialty June DRAM in of Foundry and the Logic On XX% increased addition related quarter of across the node compared of focused the and our the segment June revenues spending are the than of segment, broad-based XX%. amount as revenue, both XX%. March of systems timing leading well revenues DRAM with which and quarter-over-quarter increase quarter node quarter coming record decline XX% were with of The in is performance from XX% revenue prior represented is quarter XX% a investments had the March customer conversions. the revenue quarter. and on systems investments systems in higher The to as at X-alpha In devices.

in only microprocessors, Our not image in the progress making analog performance but about and earlier. are market packaging sensors, we it the leading-edge that demand talked Tim demonstrates here also foundry advanced solutions, components, for reflects inflections the logic the

XXXX. Customer was There The such our turn total of China XX% which to notably quarter running level Reliant at the in from in China up approximately and which regional power but also a of China CSBG, composition Taiwan regions, specialty with the June market which business, in in $X.X Group investments areas of investing fabs well the quarter. in There the as calendar devices. March percentage. Business was in customers XX% XX% came than in quarter total total at customers The XX% revenues in were our the across revenue with of prior majority respectively June flat and the at quarter. and higher with was XX% billion of the all our concentration me the levels by customers of Let a spares was high was parts strength also strong region domestic the Support utilization and now record quarter RF revenue. comprised as as our regional revenue, our customers’ Korea June revenue

based vary I believe deliver to customer can annual CSBG in again rates on investment in growth well quarter-on-quarter positioned While growth CSBG XXXX. is patterns,

me Let the The margin at now the pivot came our above June guided range. quarter of gross performance. to XX.X% midpoint in

the fixed higher absorption improved levels. Our output somewhat cost with

However, we in cost in continue have areas components. logistics, to freight of semiconductors and other as critical well as the challenges

will operational our continue improving efficiencies. drive progress on We to

inflationary However, year. of pressures in we the half second a expect persistent to the be headwind

guidance result quarter. to expenses guidance March customer’s of long-term from of Our quarter the were was performance. mitigate are chain September for on XX.X% was R&D are range technologies operating the some margin as June challenges slightly in as quarter Operating supply $XXX development to expected embeds we we in June factors. having. our all in coming business these units The a as mainly stronger views The over of our than as increase our across revenue support million, well investing of up roadmaps the

included was monitor And volatility this rate the quarterly as to related a changes. closely expect expectations. for we just million declines to equity estimate June We to consistent Other you update was June venture XX%, market line had income have quarter tax And increase impact any quarter The on rate reflect was the $XX on quarter the basis. subject investments recently items potential the in we what ‘XX market-related We past, as be to discussed level such public. tax this P&L in as OI&E last as with rate one the year of estimate the the to cause our of tax exchange foreign is approximately generally expense level. that an expense in what U.S. to item is expense obviously will guidance. well with that went something policy and in fluctuate markets. well fluctuations This our noted tax we our non-GAAP in any as quarter for appropriate. will Our we to in the impacts some due low-teens remind you, in continue quarter should calendar doesn’t line for call and in as as you

on return $XXX our paid million continue execute We during objectives in We capital $XXX share towards to dividends. allocating the repurchases. June million

calendar as XXXX, that Our ASR activity a and combination share well of approximately the share more year equity Novellus since execute together, cash will have our continue also free I’d highlight an was or we to we to This Lam billion as to quarter. brought accelerated repurchase market repurchase XXX% repurchases than holders. program. when $XX like during of open flow returned September

than was than June lower million to flow repurchase March diluted combination lower Our to the earnings in activity. June stated free XX% the expectation quarter $X.XX. buyback share XXX through was count plan increase of quarter XXX% is our to which share, and cash shares, and return per share was a dividends. quarter of Diluted due

level. sheet. United Let quarter. attributed investments. to to from continuing was quarter me including the the decrease $X.X at expenses carrying usage headcount of regular again States $XXX ended coming quarter. sales inventory investment cash, position Korea. as was factory the come levels, turns for capital full-time geographies, from of and March compensation, cash we multiple was in June as primarily are to Days $XX the growth, the quarter increased weighted at a well technology We as for are our center down from million field in which new million which X.Xx. million Capital in well in supply by The cash of capital which California, working as with depreciation $XX short-term approximately the flat prior in in came March Cash support at activity well We for amortization. growth days, as infrastructure down as capital well growth balance address our quarter It included and the had our the our in prior volumes. the end billion, back-end million equity research manufacturing Malaysia essentially expenditures at manage quarter as quarter turn supporting employees, in company $XX in level to the $XX Non-cash We an restricted for development totaled growing $X.X as well quarter. business somewhat constraints the and June the shipment Oregon organizations million, XXX and return the March expenditures as of customer with outstanding for in were as was people to was roughly the investments, including with XX,XXX flat increase the output support Inventory level delivery approximately the chain quarter. and June billion to XX higher increasing and installation. in Capital approximately

I’d for September Looking quarter. guidance XXXX like ahead, non-GAAP the to provide our

We plus margin in we point. the plus supply million X chain. million; finally, ongoing of margins point; are minus plus gross a of XXX Operating X percentage on earnings outlook $X.XX approximately percentage share of or based minus of shares. share or minus challenges This $XXX minus revenue inflationary are $X.XX XX.X%, count XX%, plus gross margin per or and of reflects that or billion $X.X seeing expecting

operational and So delivered financial then execution as fiscal in both an quarterly as basis. quarter in Lam performance record year a demonstrated on improved summary, the well June

And solid and like that, the continued prepared Lam’s my macro for not factors take immune semiconductor from foundation we along and will robust I long-term While our now is see, growth with technology would for installed conclude call the operator, leadership, remarks. industry a I that up with Tim is company. softening to base the questions. open

Instructions] We from question ahead. [Operator with Please our you. Thank Harlan go JPMorgan. first take will Sur

Good and great afternoon. operational execution. job taking for Thanks my strong on the question

weakness materialize smartphones, we have market, remarks, prepared gaming. of the your segments in PCs, consumer-focused so mentioned you seen As the in

about customers, total their memory of revenue. accounts your that for For XX%

side focused think here on supply demand and They a and Logic of into on And IDM So Foundry in CapEx half where spending. year. lower seeing, the of being drivers, set bit more a next and they are flipside, still are are I discipline, diversified disciplined is then relatively second the customers profile healthy.

deliveries push-outs this lead down your year. or next into any seen for in they are see of becoming profile to that started year? if in near the And Have next your I changes stretching modulating have macro given times customer your recent year, mid-term, So is maybe scheduled on demand cancellations base you orders major cautious environment, on their that are your to for then more shipments guys more you orders? this assume

about Harlan. believe we several spending weaknesses customers and seeing we space little customers some a also that the I their at will the of market, generally I clearly as and I memory that tone the for look said, quite you cautious now Okay. memory more It’s in forward. their have saying, have market. and take certain we’ve been question, parts on being sounding been CapEx though, disciplined in have are going publicly spending that they – the think, we how others and in believe the bit been quarters

the is that one the that and it’s changes see to has quickly fairly demand. and in think that I healthy of respond years, of industry they made in recent pricing they things particular that in quite segment that

become is the that the So I’d haven’t really side signals any change accustomed significant dealing that’s on think to our what seen demand in we we’ve customers. Frankly, I with. demand something say from though

a and pointed drivers. from to remain But look this want you that think as be, how people stretched there that to is we bit of lead scenarios transpire. at take uncertainty there think fair is And I actually are time prepared Lam execute different is some whichever market evolving of to out, through ‘XX, that I some and out. scenarios that could different that those could play certainly acknowledge times But well

really our Harlan, company respond a what When the The then to whatever we or I good the I doing are when environment in things feel the end thing we’re Tim depending will the like. know the will down well. we company At in that about, the We sideways, will the how positions the manage company be. the the the add, know executing long on great the might playbook up, of really the needs That’s is stuff We We’ve whatever installed we be stronger. is And base, Yes. market for about growing to winning, run market time. really business day, way feel and what about accordingly. will talked only it’s is. right we been think be, it the looks about.

chain-wise, supply component Yes. Thanks mean, in strong more that. then Great availability a team for and availability the great insights. I job upside And subsystems unlocking of the did June. given

you So you are as all subsystems revenue deferred above? of a component guidance? in down September your logistics revenues the where of the part strong seeing and And availability, given Is it availability? it availability, maybe or do Is coming anticipate more the supply freight quarter improvement? biggest

let Doug deferred maybe Yes, part I’ll take the and speak the revenue. first specifically

critical task we that of in our in forces to think out of having last the I customers. about XX calls order about the talked couple deployed somewhere

also shortages were we gotten the commodities. have broader lot things I But that. number across still how the quarter. constraints have But – managing instead grow bit IC in like June We’ve of to that about in a continue still mean the broad-based. improvements of a pretty it So chain it deferred talked you actually our we constraints. was numbers attention. see revenue Doug component the a constrained than those fact said in seen supply clearly, And that’s little we’re and in spending,

would about So seen think of the let of revenue. like supply where I’ll past. we taken. in Lam chain talk we’ve deferred has we’re broad improvements overall the say result, had kind is September specific Doug nowhere as I a But the near it to actions executing And that

we a minus depend little forecast I you Yes, revenue it’s color if And chain, But let number, was Harlan, plus or again, kind it’s alone the flattish, it give hard a I on bit. will going supply deferred. to progress with around honestly. how it, well of enough the some to think

Great. Thank you.

Thank Harlan. you,

from Timothy Arcuri go We will with take our ahead. Please UBS. next question

Thanks a lot.

overall question had So a WFE. I just on

guiding in Doug, So down beat on a of WFE Tim and some a a in you’re yet terms better you’re getting June, bit. September, of bit, these year coming constraints, little the improvement you full and of is bit

a bit. Is So some still year some mid-XXs of supply-constrained demand of bringing that sort that is can the that number? you maybe a even or driven little square down that’s

and in Since had primarily made supply based heard – the of WFE, industry. we Tim, $XXX but others we Yes, gave seen only at performing, how guidance, of which kind our we’ve adjustment it’s our an in put challenges. also view, last billion from it’s not we we’ve constraints on have we’re

the so number Lam to performing. entire not and executing how just And – how give is we look trying is to have industry a to in WFE

felt And lower WFE of based to prudent on what so it we still a look that constraints. be industry-wide outlook lot to

a WFE. in sliding haven’t There deferred projects bit, as that that is meaningful demand in that’s with right embedded all perspective, But that really answer, demand, around. not tools if lowering a that move from last I and so really slides see change fact revenue into somebody of anybody always and seen I now, else just we’re the the slot. any as you said some is right little meeting our And out

numbers utilized point gave. at just we So the we’re fully at this

to going Thank Awesome. it. about And ask Got it. didn’t gross then, I if margin, you. about I’d ask it. be Doug, Got someone’s remiss

me. So be it’ll I guess

So just… can you

Tim. ahead, Go

you can that if maybe us? normalize at of – And be all would us headwinds, for sort XX.X% like through headwinds? you absent XX%, Sorry, we Can of can walk of sort the these just Thanks. sort Doug. you quantify some of

permanent. long-term different company actually the where isn’t perform is way profitability of the going unchanged. the been for My of through. any is coming while a on now model was to on than Tim, the We we’re inflationary cost the stuff temporary, for it but expectation to stuff we I’ve it paid that’s for pre-inflation get we pre-pandemic, describing Yes, got back. maybe getting work bit, got and a little go The to that’s fairly paid then

in was model points the that XXX financial what still gave, so years And and guess, way of going a we I right business. the something about kind where the to ago guiding above where should X.X embedded you we’re we basis or think over now, that’s was are long-term profitability of drive

begin there or of gross premiums those the would of now. thing some some I mean, industry paying of or there would that slowing some pockets the Tim, the things is us to And to either on or a expect that’s there of about add a a are up are on are if lot case, that a of bit only this margin are if in to moderate outlooks questions ease right think like slows maybe up some I point down is you ICs, that the that that obviously demand forward. the to the things caught going expedites going headwinds is – are lot and we’re coming gets

longer is improvement, over for think said, gross as room So I there run. the Doug margin

hedge. natural a Thank much. very yes. you Definitely, It’s

thanks, Yes, Tim.

our take with Evercore. Muse question will Please next go from C.J. We ahead.

question gross follow-up on Yes. margins. you the question. afternoon. Good Thank taking A for

going, isolate type be about that’s Can half And of guys? that’s ‘XX, Doug, that for ‘XX beginning half, a escalating Malaysia. to to a whether story? in subject, you how you? Is for how love later factory you favorite speak ramp just should into to or a your would tailwind headwind second on tailwind that real first a think we Your or

Maybe and I’ll the the numbers let bit, how a ramp C.J. is going talk Tim little about I’ll describe

Okay. sure. Yes,

C.J. long from I’d well. extremely actually the improvement we’re going the is an too and is Malaysia perspective at, looking a out I’d just ago. say execution lot of there not ramp So say

still out supply of phase a building in in ramping and mode there, the the developing still We’re chain.

think globally wanted we whether especially development be behind of raw shortages that’s supply or little supply at ramping I you And would coming a to that, to the remember I the global at ramping And gives chain we Some up same where to of component contributes, time all that struggling volumes. our mean, chain because I ramp. think what Doug facilities. Malaysia it’s we’re have very bit it nicely. answer is or what that’s And materials the as about But labor. the how be is simply might is have

see you’re factories at time. And the ramping right be I ramp so now we’re the the seeing of Malaysia global the from output other out perhaps and short an that I with of isolatable easily happier impact that But because all same in to a run, starting perspective, efficiency come couldn’t scale of facility.

the numbers. Yes. And think then C.J., just about to how

somewhat headwind I of year margin. any to It think ago, was talking being really I gross it a about maybe longer. isn’t a

not as at of factor a as be Tim neutral-ish. it’s where it And total, it the we’re us. just kind in ramping the chain supply We’re biggest gross that fact eventually the labor, bigger be And to of that lanes the everywhere to and just as freight margin, a the point gets will you, our from but told benefit move will become of shorter cost will percentage the along will with be network.

keep you I’ll progress. updated we So as

Yes.

of we’re that just couple I put in be. closer about our is to having a in transformation in remarks, to case the last Asia big of in just actually logistics part emphasize I also strategic be prepared was customers. in And and And case where factory capabilities the the comment this think years made ultimately to factories customers. to customers Doug I of – for over closer want going supply closer of need costs, point the made And to large benefit to they a us. mean, our and chains high ultimately think to one my – development, seeing period that freight close I because to I that’s a when

to going and against very So remaining that hedge while. off decision. that’s know costs a high for freight I it’s pay we was a those don’t but normalize, a think conscious as logistics when – And

Very helpful. Thank you.

picture As it you’re to and do include China. exposure Reliant. Thanks XXX-millimeter walk my guess I percentage could seeing seeing, to you relates there? particularly Can hoping domestic I trends guess, you of And speak XX-nanometer And clarify, bigger then, Reliant you’re logic, above the you the trends as kind a and memory? I follow-up, of foundry so you was break bit out the through there, much. to when

the I’ll part. about beginning, systems leading-edge that take we’re Yes, scripted I let in that talk of C.J., Reliant then I’ll take the the Yes. more as selling. as well when second remarks, my equipment revenue the Tim includes and percent

of it’s So all system in conclusive terms revenue.

Yes.

think chips just constraints terms markets we also marketplace. and the the end speak of severe a think high in can markets – demand, many I as premiums mean, of very those user for where still of those and chips in I I see we

broad very just different I think to applications. And the supply that broad it’s I today try a ICs all look that’s terms for customers list of mismatch user, of of demand. I are across number investing that clearly at in manufacturers. mean types of one to we’re as alleviate looking when a is a and from what list

down, a hard but it’s market. it and today, like broadly pin to for in growing still feel So me I expanding we’re pretty

so much. Thanks

C.J. Yes. Thanks,

You bet.

Moore go Please question next Joe will We take from Stanley. with Morgan our ahead.

advanced about focus that you how potential really any affect controls. logic if and what’s might coming wonder is for for to export on of could you? on that. Do been controls the I kind incremental some there and like things you. on get you China for guys exports press There some pike Thank talk sense any Great.

Yes, Joe.

So – restrictions the was of that are recently there that to XX-nanometer. be China there technology below to you, we to broadening notified a was tell were like for of shipments operating fabs

fully And the been might prepared And that’s thinking so I to – think have coming. be that change comply. people we’re our

guidance it’s we the business on We’re contemplated working any that government just in with impact September U.S. Lam’s and gave. the

September guidance the as WFE Joe. full year outlook, well as

a XX-nanometer DRAM? doesn’t that – that is And logic Great. include

yes. best Yes, it’s to understanding, focused, the our of foundry

much. Thank Okay. very you

Joe. Yes. Thanks,

Rasgon Bernstein Stacy go with Research. from take ahead. will Please We next our question

color to give Hi, you in was taking guys. around spare wondering Thanks XXX-millimeter business, for drivers customer news and of the tools? around and if trying environment like some within we’ve particularly a given parts service macro us more the and the could strength customer questions. my potential pieces, on order I’m that just the little broader I especially other things heard for get feeling the some that? and just those cuts

upgrades and take The the I’ll that. just comprised step best the at – and components, first is as spares, remind Okay. business Reliant. to CSBG four of maybe services, back shot everybody,

of lot There more nice just installed like, about those wondering this lot forward, we’re will mean, be the things what spares a And in and of look about does I consumables year. clearly really XXXX our non-correlated look have strong often a it way. requiring shipment moves a like comfortable pretty we about what year thing give guidance, is one business not feel to next tools somewhat year. with we is but we kind this and going people spares always equipment said very One as I move of of base.

become part spares grow. that spares critical, our said is, the it the become need what continues that the more for of applications business, fact, so grows. the and more of fact in And and just And complex, importance as devices to we’ve

on having of focusing squeeze things turn more without growing. output the a like data start And tools. as transformation CapEx, talked if productivity of and additional services customers has their look they trying been business off results-based also the the of about to just services. strong. services, So productivity and to contracts, fabs and kind spares use intelligence to robust The I equipment strategic we’re making in really from shift type spend costs forward, customers is towards

well adding a still are on tools capacity they maps focused save said bit over So bit, well are I business way pulled that years even the see upgrades road in think adding upgrades CapEx capacity, services they I a Upgrades of has to that. and well. really been busy spending often turn if they when actually do manage lots think macro And they so maybe upgrades. tech tend their as to technology pull to actually, because the do back. you environment impact for customers an can of I’ve not where continue little new doing little conversions. or of and Same back

a so upgrades And business stronger. the bit gets little

by the so fact continue need and that us many quite And next And year’s time in that in can’t actually environment. I we said, well then the do think a there to we get as business, improve that just have to of do for to think, that chips meet demand. underinvestment can even some been maybe significant evidenced area as we Reliant, of lot catch-up

so And there. application It’s don’t and view a still is have on set Eventually, catch-up maybe we end up diverse very there fully caught when gets happens. that drivers. of markets that really a some

it’s steady So in of application it’s in probably the But past predict. that years. economy grower clearly, of some tied at for overall terms kind back towards growth, to to moderates in the point, hard the and expansion we’ve it seen more

I So guess drove sequential these of strength which maybe pieces I in was should services? have one asked the more the what explicitly biggest?

was Reliant, as why that script, my spares out well as Stacy. It called in that’s I both

it. you. Got Thank Got it.

long customers I’m input I proof aren’t pass inflation seem For the a ask to pressures snarky, margins. this be I’m is think their But it come their to all going of get you? point little up I ask my of terms to going at and your the out. follow-up, gross Why inflationary across ability going in anyways. to – on going but to costs this

I’ve because we’re and prices, raising – to for not saying or we you think believe are. I a want this, I been I don’t that Stacy, So think, two. quarter

it to And stronger, I a all our that star It’s prices appropriate kind the I expected And inflation some be, the would been pronounced comment think comment. and detriment, than whatnot, bigger, an that’s of and time. more get is latency has there maybe much on. wasn’t it comment. honestly. renegotiating to going we what’s very

and will. getting what to for on we fairly need we compensated working We’re

what of is be or the bps? driver mean, to two much I model of think much how like can get that it or do we it Is range? as of you a helps more you goes how latency So XXX kind that I’m is back year looking at away? like a

profitability what It’s get us from through even though helps is expectation basis back range. way said we’re our where we I XXX to What to is to points this where we for Yes. working probably need be. model the unchanged, are the inflationary the long-term company earlier environment, it’s

it. Got

Okay, guys. it. Appreciate thank you,

thanks. Stacy, Yes.

Sankar our Krish from Please We next will ahead. go Company. take Cowen & with question

them. I Yes. have taking of question. Hi, for thanks two my

The last first strong. Clearly, for several Doug. have one quarters the been really

the we headcount I your next speaking, down XX%, in should grown then if And about say, You’ve terms follow-up revenue, lot. a or Tim. earnings operating Hypothetically had how of model and a leverage? think for year was X%

dust best company’s that when downturn do running playbook the environment, point just the just same last It’s in at to. variable and guess at we I the look know to environment, is management look performance here. and well-worn over we resources, the model Krish, the the run the temporary to last the would you have know would Yes, is outsource of a things. how point we to employ I down need will things. use best thing a up in we same how to decade, off right? thing an We team history company the cost We I highly we company, a The

you’ll I’m curious maybe about first Fair question for this time. deck. the your Got kind on a enough, it. of And strategy. then advanced advanced packaging packaging on Jim, Got Doug. it. the I’m talk is noticing earnings

peers company? your portfolio a How with looking in think of evolve? we development, back organic that partnered were have or panels. back-end companies Are should you with looking packaging should at your advanced Some into M&A partnership

is quite and area look, important think Lam advanced some in I Well, that to we for have for – time. we’re an participate packaging looking at

don’t if because well deposition And in know – we we’ve we’ve from the that have have these time important first But actually talked well, I about to incredibly in believe talked as copper talked a both strong and about position, the standpoint the applications in like play it especially primarily electroplating. as the role etch an etch architectures. have I new it we So it’s past. about the it

look evaluate and As at form still those we that’s pursue factors segments, as whether is market, whatever our means win or in organic change, therefore, to inorganic. that we best emerging will the and

it. Thanks, Tim. Got

Thanks, Krish.

Sachs. We will question Please ahead. with our from Hari next go Toshiya take Goldman

dep? in was could hoping really Great. of level and I years, in question. average the markets numbers today and Thank in share the where to your the funnel? a see sort you quarter. It’s you so current etch those you see action from taking are win given you And a much of application standpoint the nice in corporate for up market across quantify logic show your do vis-à-vis going other where couple in that set, To

Yes.

our If you probably lowest we across look at described. that logic the markets specifically, exposure it’s

from However, will part we very strength which in been continue the June. we customer that results progress of nicely I specific remind to with, saw have gain about you, share that you Toshiya a is talking the

logic us a from the Yes. used the perspective has exposure And And typically our is to with things is underway Toshiya, participate that allowing a our and think been. currently about foundry inflections of are respect displace in of I guess add, the is equipment couple advanced some to But I there would mean to are been foundry more space. just with lower older I one actually, of to of some have actually technology technologies logic. some that SAM

are seeing wins so for didn’t And etch. our of a of selective traction you the list quarter. this lot We all

for markets, doing opportunity metallization our and the back-end be of to both We to us. interconnect inflection. continue only very tools. and opportunities RC for going inflection, advanced ALD of us, at dielectrics logic we used see well used new with to are there. creating etch That’s the selective new selections new kind and like it’s for That’s deal

are an that’s lot so Doug as I our we at our certain opportunity, think share bit seeing a little gain also customers, but and expansion driving that a mentioned, of And roadmap. of new product like of

have objective for position foundry We more notes. to improve logic an our in advanced

you of Obviously, with as quantify see you, you market to And is my of or pretty developers. on the could on there percentage couple it’s dry this resist, displace you well. years? guys just in Thank as product well. sure this this you partially can as Thank are track us of in you couple of What customers you. am other follow-up SK business have great you. working a a And help probably Yes, traction as hynix think do that’s But one how or helpful. I capture Tim, then significant public. sort be traditional coated years? for

out think to past $X.X want billion we disclosures you quantified roughly Okay. a sort period. we wins. just think in starting record are X-year development is to I of here, we don’t I about are see talked have And a over us opportunity – the get I with new Well, it but of the – about tool

NA about. is is this driver EUV. the talking a would the this are play developing some X of of at years not impact that. for So, us. longer production kind we much next still kind development very stage are so the in yet for revenue I of of the accelerating should obviously, putting you you this of into about and sense first maybe idea of But be revenue, talked we the And give But a high fab that

capability throughout for that And if patterning EUV advanced XX going be opportunity for around to XX you the our primary years continues logic, to is period. so think grow next just the then years, as

capture with you off So, it’s billion we have that just And the the think EUV, lot we count about to as continues grow a just layer and to NA $X.X then years, market. next application. X get good high to in a I it starts and of think

from years, say Day, is X or say, today? your XXXX years sorry, then about the, initially from X guys years Analyst talked you it you Tim, when X know And I

development start know we started of today, now record tool obviously, positions don’t have I I just the guess which – a clock Well, generate haven’t I said, I we only as from. to reported revenue will yet because,

I yes, than X today, you safer from bet – could from it’s Day. our years a years X it’s So, Analyst think call it

you. Thank good. Sounds

Thanks Toshiya.

take will Citi. go with We ahead. question Atif next Please Malik from our

CEOs, March It of the both the Congress my taking question Tim, for Act. for you you has and you passing about Thank spoke have question. a of this passed Yes. importance with CHIPS looks you. to Intel legislation. along I Micron in like Senate

for it Congress makers? or terms present about foundry equipment signs what how goes bill you. U.S. impact of the market Can about breaks can if And talk assuming you of Thank will this means what tax it and in the logic off. Doug, – areas? terms through So, growth Lam you talk in share in

the U.S. semiconductor obviously, Well, manufacturing a Okay. benefit it’s overall. for significant industry

One I think those in come and most will fabs. this directly, what garner U.S. from two Lam’s as is for purchased and in will we of is a capabilities I ways. the say that capacity, we large that’s our that would are customers benefit hopeful obviously, invest the share in equipment

business that money way in flow one is for that’s so Lam. into ultimately through from which And

companies, ourselves technologies having years, years, also X of might as those XX makers all competitive for device I that that but things long-term stage the capabilities those was be technologies I X R&D which the semiconductor about necessarily to global of in that, in I do us semiconductor always keep next-generation if fund to front into for about is think going believe, us on money without which manufacturing to help that with makers, do years that’s term of risk U.S. Senate, equipment U.S. technologies think develop of companies incredibly future. longer some and allow and the to in to the has CHIPS is when take on long-term, improvement Act, you the one hard is, create the that fund that talked and I individual Specifically,

other device makers and take. see I So, financial equipment details, that’s that’s would my need but way benefit. the makers that to both We can all the say companies,

any Atif there Are follow-up?

No, I am good, Doug.

you. Thank Okay. Alright.

next our question with America. take Please will We go of ahead. Arya from Bank Vivek

I Thanks. had questions. two

expect else $X.X baseline? the Is all and being to are you line is for this should anything could this stronger September then that? billion that deviate quarterly not gross you new is guiding flat stronger from one, new to have equal, are we December giving of sales be I kind that than even up? potentially appreciate margins So, First and or September? you December trend June make outlook, this there but that you

Vivek, a up. continues quarter Yes. you are guide pretty standpoint think am something I you. new Listen, in progress chain the It September quarter, reflected from are with going the the right. for to in made we pleased the barring quarter. be to supply we December not coming June I

the you of execution will our And revenue. revenue largely in what see $X.X you And company. has has – the that think generation billion mention me been continue. heard deferred limited I the

am to a So, follow-up on. give there not yet. to December you us for going I number that’s But for quite

any the second the What restrictions a didn’t is sub-XX then or not I And China? do nanometer the exposure think fabs do your that much. to to just apply multinationals or you think China is clarification. was And domestic, with just Understood. apply there one they to could China? in

to might At what we have or sub-XX we that had this in in our point, assume we nanometer are China. would sub-XX. all applies going quantify And not for it activity to plans

you you September September, But business Tim, is nanometer de-risked, outlook? for there said China in clarify, sub-XX just to your i.e., zero is

guidance we everything the reflects fully described. Vivek, just that

Okay. Thank you.

welcome. You’re

with Mark Lipacis next will ahead. from take Jefferies. our question Please go We

impact that your manufacturing you up guys your sounded Tim, not help the tool clarification, about if any on or mechanics three back the It in just And people that of don’t response an in I end prefer the now, want Hi. I have question with in. months, it I is, was they as in you taking customers before what to come us you somebody but orders different cancellations. think and question split you the slots as like latitude do know Thanks earlier that to question. whether the my deal seeing say, seeing a operations of can to or were your for If make you the understood the you want do The understand or have I kind do your a question. – slots you send push-outs of I have had then my queue, line. to you it your you sure and well, demand, allocate are question? just customers how said I come I clarification

come just happens If the of That you who they orders around treat to be customers and you review helpful. push-outs? Thank kind as how ask you in could for very much. mechanics what the would the

can I Sure. them. to of both try address

was push-outs, no demand, just my we cancellations at that in no have to and changes clear, yes, So, no point, be this are seen comment meaningful. push-outs all

being I by struck ‘XX publicly. that However, we customers cautious I am changes mean I come. it’s lead I not and our want to might stretching saying those quite and not long acknowledge, some mean ultimately with a of times through see tone

that saying seen doesn’t that mean we just that, might So, none have not happen.

and this was today at at point – I met, to are we that the so commitments that trying signal. have being what And was

we that try project to about and like second the is, need mean push would we partners the have by months those customer think ready a demand quite is a because I like aren’t to push X a if flexibility of our or lead and way. and into question, treat does it is are invested long create or a in with fact see when I a right months few operational what if longer moves not plans. in couple their have come likely where sometimes so times, We we they asked – which maybe And we to we it with it same so talked say in in that work within the can flexibility. treat way part to last – the even our your people change really respond And either customers we are facilities manufacturing, their years customers but are pull their for we to all come I it’s and projects greater are slots. we doing or now in customers our or very there have us much of to that demand. ultimate of the

them with adjustments, possible. it’s work to and if got those have make We

Very helpful. Thank Got you it. much. very

Yes. Mark. Thanks

will take go Patrick with from our question Ho Stifel. next ahead. We Please

much the terms more be Are second quarter. very nice because obviously, supply the the Doug, you will related the now of shipments you some to of next you Thank issues quarter. have congrats year it’s seen in past maybe weighted incidents carry for for and in quarter you chain, that improvements quantity a half still some the to guys. just of on going

deferred the chain, are with incremental supply just some even So, to near-term? seeing levels staying with the to to you on pace the September demand improvements the that the revenues the same continue guess, you are levels at least of now quarter? trying that’s And keep I as it’s at high are why forecasting

That’s Yes, clearly Patrick. of it, part right.

We have demand. unmet got

we have last We we the we them the September. not got meeting are through from yes, continuing that output up shipments revenue. shows are working supplier But go deferred to partial them. unique as that we increased that and into extent we they quarter, situation Each – what that has as see a need improved with

customer them the for of been to have working MPU some they you as quick the gains quantity as a Obviously, follow-up, have with ramping time time. for and starting new a and are been volume maybe Tim. now, start Great. leading share higher you we working for see And But with some products.

qualitatively you basis? that you have technology seen gives confidence customer with nodes, not roadmaps them their you work quantify, new opportunities, can in but going-forward on incremental that more you of that’s some maybe say given a and and terms with market accelerated As what

their of technology. of as is next node roadmaps technology technology guess I equipment us, create to spoke And in, I all have created said you think opportunities I that ahead transitions kind one, an as It gate we brought it customers. you, those and couple the changes, think where but a new we are. somebody those to example, of I speak greatest future Lam’s get always I or the mean around designed have for what all occur. about to does technology to say, just implementing opportunities

a come, changes insert get we faster the the those their in new And sooner so those to technology bigger way. into production the applications opportunity lines

about selective some etch, of ALD And new some our tools. so have of those talked we

Of of etch to course, EUV. really patterning that for with – some the designed fine systems are pitch it’s support our associated

more use grows and that EUV of we node, technology layers each at for like us. EUV So, more

Lam’s every the growing is so market transition the customer, greater our increasing. stems And and they greater sort the faster opportunity technology, of share is

Great. Thank you.

Patrick. Thanks

with take will Please Blayne We from next Barclays. go our ahead. question Curtis

the that same said you image up seen demand hear those just want my question. strong. Thanks haven’t that much. for Qualcomm looking outlook. think you follow-up am I to areas on MCUs, guys. I weakness a seen on have lot I sensors we of at APs, mean mentioned mean, I I being And caught areas they I supply. see Hey I and you just are taking mean the

know I that’s forecast. not your So,

of just am of When kind get all hearing picture you you You have are curious, same you trying this versus this look see are still the through know – am customers. them just from the if kind But cuts, definitely obviously, to been seen up. curious you what into about you the yet, downstream, memory before. I CapEx weakness. just actually you you have fit story, catching I I

what know starting don’t but you the I downstream weakness. seeing right point is, clearly, So, are

as Yes. are clearly acknowledge, going cautious the Blayne, macro. a we what’s hearing obviously, We see within on we strike customers more around tone. –

we have forward, environment improvements like manufacturing But foundry say, new business helpful we so if is The we that with the diverse made, regardless demand what installed to the demand regardless the haven’t as what that given gains will Higher have is think true that looks positive be different and more SAM also in demand of exposure will and more And look be as is. operate environment to intensity and a have global we whatever up and helpful things infrastructure. is, effectively what of be for And – as clearly, key are base our And within the of like. larger is. the us, And changes, regardless etch what regardless will share dep end technology that is. to we effective demand expansion, and set outlook, scenarios. I it’s we Lam efficient a the more fact like. looks if XXXX end the demand inflections, the saying changes demand due of be our That clear. what

to what forecasting highlight think exactly what at to we anybody to than are like. best looking not really I we So, is trying going else is and going are be be the probably know better XXXX no

believe good how do we have well that Lam pretty we a environment execute can within whatever is. very of So, view

subsystems that like understand you down? more or still are the and are people you to answered is be started keeps the it up. September, the in have door Thanks was get, for certain the it mentioned challenges, on hasn’t just getting but you I you that trying orders revenue that. flat are understand way And trying to then balance. its seeing can’t in just before, Just I you work might could that you high curious, to start having but this why just just balance catch to up? deferred know going

would sort it’s a one, improving. that quite we output And of to number the for quantities general, everything frankly, higher say, new that But Well, is aren’t it’s a level of output. And that I still we there meet to volume it’s all quite in are of just down components. higher want achieve. just is – trying able

just it continues to so And increase.

of specific general, that thing, with we point I the couldn’t but happy am in suppliers. are one say would I a to improvements So, broad array our I across seeing

And because incremental I further improvement them so improvement to that expect do efforts we thank for see move I I their September. as said and

Thanks so much.

Blayne. Thanks

for question, please? more time one have we Operator,

Okay.

Joe Please take Wells ahead. Quatrochi We will question final with from our Fargo. go

question. the Yes. for Thanks taking

that from the market maybe think third-party pretty How the that tools supply. on it’s on slow do Reliant market business, the question end tools if should competing has for about known Reliant does if business? well about the reseller been Another used increasing pretty supply semiconductors perspective? limited And against we that to start that then demand think we how of tools, market

as of would There very used of equipment I equipment to been the Joe, product are historically a equipment today. selling the anything today. first is we segment service little. be a was, – Demand or of refurbished by you that’s a And there Reliant market line, used any thing yes, I to right? into lot isn’t result that, point a modeled guess older isn’t new coming out

you do Tim want… know, don’t I So,

No. Yes.

I equipment of this is all clearly Most fully case. not being think that, that’s utilized. of the at that point if

customers changing that to of to or semiconductor capacity? But were do to an be perspective? refurbished in I amount kind demand the hold you slow see if guess somewhat think you do changing, see of maybe end continue tools you that from Do coming

mean changing mean significant we assets are tips see tend in these years to once our XX don’t used I they producing years that these a I different fabs, nodes. I some to tools very technology into of XX for see way.

far So, to it’s been equipment, as those definitely keep as of think many I of get hold anything customers will these systems.

Thanks.

Joe. Thanks

turn additional conference session. you would any question-and-answer or back for This like to I concludes today’s to presenters the closing remarks.

our joining Thank for call We support. and you thank operator. your appreciate today, you, everyone all

concludes today’s conference. this participation. We gentlemen, appreciate your and Ladies

may You now disconnect.