Applied Materials profit sinks 65%
Chip manufacturing equipment maker Applied Materials Inc. said Tuesday its fiscal third-quarter profit plunged 65%, in a difficult environment for the semiconductor industry.
For the quarter ended July 27, the company earned $164.8 million, or 12 cents per share, down from a profit of $473.5 million, or 34 cents per share, in the same period a year earlier.
The latest quarter’s results included stock options costs of 2 cents per share and items related to acquisitions totaling 2 cents per share.
Analysts, on average, were expecting a profit of 14 cents per share, according to a poll by Thomson Financial. The estimates include stock options costs, but other one-time items are generally excluded.
Revenue fell 28% to $1.85 billion from $2.56 billion.
Analysts were predicting sales of $1.84 billion.
"Applied Materials delivered financial and operational performance that was in line with our quarter forecast during a difficult semiconductor industry environment," said Mike Splinter, president and chief executive, in a statement payday loans application cashadvance.com. "While our silicon business was down, revenues increased in our display, service and solar businesses."
Shares of Applied Materials (AMAT, Fortune 500) closed up a penny at $18.47, and added 15 cents to $18.64 in aftermarket activity.
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