Managing SG&A Costs: Lam Research vs. II-VI Incorporated

In the competitive landscape of semiconductor manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Lam Research Corporation and II-VI Incorporated have demonstrated contrasting approaches to handling these costs.

A Decade of Financial Strategy

From 2014 to 2023, Lam Research consistently maintained higher SG&A expenses compared to II-VI, peaking at approximately $886 million in 2022. Despite this, Lam's expenses grew at a modest rate of around 36% over the period. In contrast, II-VI's SG&A expenses surged by over 650%, reaching a staggering $1.04 billion in 2023.

Strategic Implications

While Lam Research's steady increase suggests a controlled expansion strategy, II-VI's sharp rise in costs may indicate aggressive growth or restructuring efforts. Understanding these trends provides valuable insights into each company's operational priorities and financial health.

Conclusion

As the semiconductor industry evolves, effective SG&A management remains a key differentiator. Investors and analysts should closely monitor these trends to gauge future performance.