Applied Materials’ Profit Beats Target

Applied Materials Inc. reported fiscal third-quarter operating profit that topped its target of breaking even in a tough environment for computer sales.

The biggest maker of semiconductor manufacturing equipment said profit fell 93% to $41 million, or 5 cents a share, on a 51% decline in sales to $1.33 billion.

Analysts were expecting Applied to report earnings of nil to 7 cents, with a consensus forecast of 3 cents, and sales of $1.25 billion, according to Thomson Financial/First Call.

Orders were $1.21 billion, down 63% from a year ago. Backlog at the end of the third quarter decreased 13% to $2.65 billion from $3.05 billion at the end of the second quarter, the company said.

Applied also said it expects sales in the fourth quarter to be little changed from the third quarter.

Shares of Applied rose $1.50 to $45.15 in heavy after-hours trading. Before the results were released, the shares closed at $43.65, off $1.19, on Nasdaq.