Lam Research (LRCX) Q1 2023 Earnings Call Transcript

For the period ending March 26, 2023

April 20, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Good day, and welcome to the Lam Research March 2023 Quarter Financial Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Tina Correia. Please go ahead.

Tina Correia

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

During today's call, we'll share our overview on the business environment, and we'll review our financial results for the March 2023 quarters and our outlook for the June 2023 quarter. The press release detailing our financial results was distributed a little after 1:00 p.m. Pacific Time this afternoon.

The release can also be found on the Investor Relations section of the Company's website, along with the presentation slides that accompany today's call. Today's presentation and Q&A include forward-looking statements that are subject to risks and uncertainties reflected in the risk factors disclosed in our SEC public filings. Please see accompanying slides in the presentation for additional information.

Today's discussion of our financial results will be presented on a non-GAAP financial basis unless otherwise specified. A detailed reconciliation between GAAP and non-GAAP results can be found in the accompanying slides in the presentation. This call is scheduled to last until 3:00 p.m. Pacific Time. A replay of this call will be made available later this afternoon on our website.

And with that, I'll hand the call over to Tim.

Tim Archer

Thank you, Tina, and welcome, everyone. Lam's March quarter results reflect strong execution with revenues, operating margins and EPS all exceeding the midpoint of our guidance. Foundry-related system revenues achieved record levels, demonstrating our solid progress in both leading edge and specialty technology segments. We continue to prioritize investments in long-term technology road maps, customer support and operational transformation while prudently managing near-term spending and profitability.

As our June quarter guidance indicates, the near-term demand environment remains challenging. We expect 2023 WFE spending to be in the low to mid $70 billion range, with additional weakness primarily from memory customers, partially offset by domestic China-related demand. On the China front, we see incremental strength in mature node logic and memory segments. Recently, the U.S. government notified us of a clarification to the rule issued last October governing exports to China.