Applied Materials revenue meets low expectations

SAN FRANCISCO (Reuters) - Top chip-gear maker Applied Materials forecast current-quarter revenue below expectations as semiconductor makers, worried about the economy, put off costly new orders.

Applied Materials had warned of a slowdown in its chip equipment business, and in its report on Wednesday it also said its small solar panel equipment group and display group saw their sales fall during the quarter.

"We all understand the industry is under pressure. Their outlook is worse because of not only the chip environment but their display and solar businesses," said Patrick Ho, an analyst at Stifel Nicolaus.

Applied Materials posted fiscal third-quarter revenue of $2.34 billion, down from $2.79 billion in the year-ago period.

In July, the company slashed its full-year targets due to a sudden decline in orders from chipmakers.

"From European austerity to slowing growth in China and the U.S., economic uncertainty is weighing on top of a seasonal pullback to reduce weaker near-term demand. And our customers are choosing to delay their investments until they see stronger demand signals," Chief Executive Mike Splinter told analysts on a conference call following the quarterly report.

Applied Materials said net income for the quarter ended in July was $218 million, or 17 cents a share, versus $476 million, or 36 cents a share, in the same quarter last year.

The Santa Clara, California, company said it expects current, fourth-quarter revenue to be 25 percent to 40 percent lower than in the third quarter. The midpoint of that range is about $1.58 billion.

Analysts had expected third-quarter revenue of $2.32 billion and fourth-quarter revenue of $1.94 billion, according to Thomson Reuters I/B/E/S.

Non-GAAP earnings per share in the third quarter were 24 cents. Analysts on average expected 22 cents.

Applied Material's stock fell 3.30 percent to $11.41 after closing up 0.77 percent on Nasdaq.

(Reporting by Noel Randewich; Editing by Gary Hill and Phil Berlowitz)

Source: http://news.yahoo.com/applied-materials-posts-lower-quarterly-revenue-201117535--finance.html

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