Applied Materials Profit Plummets 90%

Applied Materials Inc. reported fiscal fourth-quarter profit that plunged more than 90%, but the world’s biggest maker of semiconductor manufacturing equipment signaled that sequential declines in orders may be nearing an end. For the quarter ended Oct. 28, Santa Clara, Calif.-based Applied Materials reported a loss of $82 million, or 10 cents a share, compared with year-ago net income of $664 million, or 77 cents. Sales fell to $1.26 billion from $2.92 billion--in line with its earlier forecast.

Excluding certain one-time items, Applied said it would have earned $22 million, or 3 cents a share. On that basis, analysts polled by research firm Thomson Financial/First Call were expecting per-share profit of 4 cents, within a range of 1 cent to 8 cents, on sales of $1.24 billion.

Applied Materials shares fell 4.4% to $38.90 in heavy after-hours trading, dragging down other semiconductor stocks. Applied Materials shares had dipped 9 cents to close at $40.71 on Nasdaq.