Lam Research Corporation (NASDAQ: LRCX) stock rose over 1.4% in the pre-market session of Jan 28th, 2021 (Source: Google finance) as the company posted better than expected results for the second quarter of FY 21. The strength of the performance was driven by investments in all device segments as the customers ramped to meet the demands from a diverse set of end markets such as data centers smartphones PCs gaming consoles IoT and automotive, also by the continuous growth of the installed base.
The systems revenue the memory segment was strong in the December quarter coming in at 68% of systems revenue. This strength was on the back of the NAND segment which represented 51% of the systems revenue versus 39% in the prior quarter. December was a record revenue level of NAND quarterly revenue dollars for the company. DRAM investments contributed 17% of the systems revenue. DRAM spending was spread over the 1Y 1Z and 1-alpha nodes. The revenue percentage was down slightly from the 19% in the September quarter.
Foundry represented 26% of the systems revenue for the quarter versus 36% in the September quarter. Rounding out the systems revenue picture logic and other contributed the remaining 6% of systems revenue in the December quarter which was flat with the prior quarter level. Geographically, the company continues to see solid levels of investment in the China region coming in at 35% of total revenues. Different than the last several quarters the majority of the China spending this quarter came from our global multinational customers investing in their China-located fabs. In the second quarter, the company’s revenue for the Customer Support Business Group came at $1.1 billion which is an increase of 12% from the September quarter and over 35% higher than the same quarter in 2019.
LRCX in the second quarter of FY 21 has reported the adjusted earnings per share of $6.03, beating the analysts’ estimates for the adjusted earnings per share of $5.64, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9 percent to $3.46 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue by 3.85%.
Additionally, for the December quarter LRCX paid $188 million in dividends and allocated $703 million toward share repurchase. During the quarter the company had declared an additional $5 billion share repurchase authorization.