Lam Research Corporation (NASDAQ:LRCX) Q4 2014 Earnings Conference Call - Final Transcript
Jan 28, 2015 • 05:00 pm ET
Good day everyone and welcome to the Lam Research Corporation December 2014 Conference Call. At this time I would like to turn the conference over to Audrey Charles, Senior Director, Investor Relations. Please go ahead.
Thank you. Good afternoon, everyone, and welcome to the Lam Research quarterly conference call. With me today are Martin Anstice, President and Chief Executive Officer; and Doug Bettinger, Executive Vice President and Chief Financial Officer. During today's call we will share our outlook on the business environment and review our financial results for the December 2014 quarter and our outlook for the March 2015 quarter. The press release detailing our financial results was distributed a little after 1 PM this afternoon. It can also be found on the Investor Relations section of the company's website along with the presentation slides that accompany today's call.
(Cautionary Forward-Looking Statements)
(Cautionary Forward-Looking Statements) With that I'll hand the call over to Martin.
Thank you, Audrey. Good afternoon everyone and thank you for joining us today. We'll start by speaking to our December quarter results, supplemented by a review of calendar 2014 millstones with comments on their relevance to the future growth and opportunities for the company. We will then segue to provide an update to our outlook for wafer fab equipment spending in 2015.Then more specific to Lam as we enter a New Year that marks the 35th anniversary of the company we want to take this opportunity to outline our focus for the year and provide some context for the multi-year out performance potential that exists as a result of the company's vision and execution.
I will then hand the call over to Doug for a review of our financial and operational performance.The December quarter concluded with results in line with our expectation showing strength across all metrics and reinforcing our outperformance trend for calendar '14. Within the quarter we grew our backlog by greater than 20%. Additionally, our deferred revenue balance has increased, which we expect to continue with the shipment strength anticipated in the first-half of 2015. December was the sixth consecutive quarter of greater than $1 billion in revenues and concluded a record breaking year for the company with total annual revenue reaching $4.9 billion.
Our revenue growth rates we believe outperform the industry by a factor of two with profits expansion at more than twice the pace of our revenue growth. The strong December quarter marks the end of a very rewarding year for Lam that featured the delivery of record setting performance, execution on our market share gain and SAM expansion opportunities that exceeded expectations and a high level of focus on increasing innovation in everything that we do.
In turn, we believe that the differentiated culture, values and management system of the company have enabled effective scaling necessary for making
profitable growth sustainable.In 2014, we made meaningful progress against our market share targets, introducing new products and services to participate in the market expansion opportunities of the various technology inflections, including multi-patterning,