Applied Materials' Revenue Falls, But Meets Estimates

Top chip gear-maker Applied Materials posted fiscal third-quarter revenue of $2.34 billion, down from $2.79 billion in the year-ago period, after warning recently of a drop in orders from semiconductor makers worried about the economy.

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.

Applied Materials in early July slashed its full-year targets due to a sudden decline in orders from chipmakers.

The Santa Clara, California, company said on Wednesday 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.