Lam Research Corporation (NASDAQ:LRCX) Q4 2015 Earnings Conference Call - Final Transcript

Jan 27, 2016 • 05:00 pm ET


Lam Research Corporation (NASDAQ:LRCX) Q4 2015 Earnings Conference Call - Final Transcript


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Welcome to the Lam Research Corporation December 2015 Earnings Conference Call. At this time, I would like to turn the conference over to Satya Kumar, VP of I. You may begin.

Satya Kumar

Okay, thank you, Aaron. Good afternoon, everyone and welcome to the Lam Research quarterly conference call. With me today are Martin Anstice, President and CEO and Doug Bettinger, EVP and CFO.During today's call, we will share our outlook on the business environment, review our financial results for the December 2015 quarter, our outlook for the March 2016 quarter and provide an update on a planned business combination with KLA-Tencor.

The press release detailing our financial results was distributed a little after 1 PM Pacific Time 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. Today's presentation and Q&A will include statements about our expectations and beliefs regarding certain future outcomes, including the time and the parties' ability to close the proposed business combination with KLA-Tencor and achieve the anticipated benefits, technological advances and synergies to be realized as part of the proposed transaction and the anticipated structures of future combined operations.

(Forward-Looking Cautionary Statements)

This call is scheduled to last until 3 PM Pacific Time and as always, we ask that you limit your questions to one per phone, with a very brief follow up so we can accommodate as many questions as possible. As a reminder, a webcast replay of this call will be available later this afternoon on our website.With that, I will hand the call over to Martin.

Martin Anstice

Thank you, Satya and thank you all for joining us today. I will first begin with a review of our calendar 2015 accomplishments, including comments on their relevance to the growth outperformance opportunities for the Company, then offer a perspective on wafer fab equipment spending in 2016 as well as the trends driving our longer term favorable outlook, concluding my prepared comments with a progress update on our planned business combination with KLA-Tencor.

Doug will then review our financial and operational performance as well as provide guidance for the March 2016 quarter.2015 was another record year for Lam Research, augmented by our plan to combine with KLA-Tencor this year. A partnership that we believe will create an unmatched capability for the global semiconductor industry by uniting best-in-class process technologies with process control, creating a new paradigm in process enablement, accelerating innovation for the benefit of our customers.

Last year, for the first time in our history, we exceeded $6 in earnings per share, grew shipments by 25%, to nearly $6 billion, reported record revenues of $5.9 billion, with operating profits expanding at greater than 1.5 times revenues. Demonstrating, we believe, sustainable leverage in our business model.In this context in 2015, we achieved record output from our factories, while improving our on-time delivery performance and shortening cycle time for installations, a very solid operational contribution.2015 was the third consecutive calendar year in which we have