Question-and-Answer Session
Operator
(Operator Instructions). Please go ahead. Dr. Kumar from Credit Suisse.
Satya Kumar - Credit Suisse
Yeah, hi. Thanks, Steve. Given the unprecedented low levels of shipments, in the December quarter, I think it will be really useful first to know what is in that shipments, in terms of your service and spares revenues and what's Spin is doing, just so as to so that we get a sense as to what really is the capacity orders you're getting, if any, in December?
Steve Newberry
I think as you know, we don't segment our Systems business versus our Customer Service business, but I think if you look at where we have kind of indicated in the past that when we were at 550 million or so in shipments, that our service and spares business was in the 20% to 25% range, and so while the level of service and spares has come down slightly, it's relatively modest compared to the systems activity.
And so, to give you a kind of a little feel for where we are in historical perspective, if you look at what it was like for Lam, back in December '00 to December '01, our shipments declined 80%, and there was largely a decline in the systems business.
Our revenue declined 65% from March '01 to March '02. So, where we are today, from a current standpoint is that from the peak in June '07, our shipments have declined 62% and our revenues have declined 56%. And I think that it would be fair to say that we're not yet in a situation that's as, big a decline in systems as what we saw in that '00 to '01 timeframe, but we're getting pretty close.
Operator
Our next question, in just a moment is from Bill Ong, American Technology Research. Please go ahead.
Bill Ong - American Technology Research
Yes, hi. It is the first time, in a long time, that the companies are starting to lose money in the downturn. So I have a more of an industry question, trying to identify baselines. If I look at the capital intensity for the chip industry it is probably about 20%, trending down to about 16%, 18%, if we look at disc drive industries, it's about 8% of revenues. Do you have a sense of what type of capital intensity level can be reached over the course of time? It's clearly trending downward.
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