SANTA CLARA, Calif. (CBS.MW) -- Applied Materials topped Wall Street's earnings and revenue targets for its third quarter Tuesday, even as the chip-equipment manufacturer's sales declined 7 percent from the same period last year.
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Also, orders for new products increased 5 percent to $1.78 billion, which was less than Applied had originally predicted. In May, Applied said orders would grow 10 to 15 percent.
Shares (AMAT: news, chart, profile) were flat on Island ECN after the announcement. During the regular session, Applied shares closed down 12 cents to $13.46.
For the quarter ended in July, Applied reported net income of $115 million, or 7 cents a share, on revenue of $1.46 billion. Analysts surveyed by Thomson Financial/First Call expected earnings of 5 cents a share on revenue of $1.286 billion, on average.
During the same quarter last year, Applied had net income of $115 million, or 7 cents a share, on revenue of $1.58 billion.
During the previous quarter, which ended in April, Applied reported net income of $52 million, or 3 cents a share, on revenue of $1.16 billion.
On May 14, Applied predicted earnings would increase an unspecified amount from the 3 cents reported in the second quarter, while revenue would total $1.2 billion to $1.3 billion.
Backlog increased to $3.3 billion from $3.11 billion during the previous quarter
