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Lam Catches Late Bid

The company's shares jump after its second-quarter results top estimates.
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Lam Research

(LRCX) - Get Lam Research Corporation Report

saw its shares jet higher in late trading Wednesday after the company easily flew past Wall Street's quarterly targets.

For the second quarter ended Dec. 25, the chip-equipment provider posted revenue of $358.2 million and earnings of $77.8 million, or 55 cents a share. In the September quarter, Lam had a top line of $320.9 million and a profit of $49.5 million, or 35 cents a share.

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The Fremont, Calif., company had revenue of $379.8 million with earnings of $83.6 million and 59 cents a share in the year-ago second quarter.

Analysts surveyed by Thomson First Call were expecting earnings of 39 cents and sales of $344.1 million in the most recent quarter. Shares of Lam jumped $3.87, or 10.1%, to $42.19 in after-hours activity, surpassing the 52-week high of $39.92.

Lam's gross margin for the quarter rose to 49.5% from 48.6% in the September quarter. New orders recorded in backlog increased 24% sequentially to $403 million.

"Business conditions continued to strengthen in the December quarter," Steve Newberry, Lam's president and chief executive, said in a statement. "Improving demand for wafer-processing equipment and services coupled with recent market-share gains have resulted in a significant increase in new orders.

"We believe the continued increase in selection of our equipment into today's most advanced wafer-processing fabs, as well as recent next-generation technology wins, is a reflection of the company's ongoing competitiveness."