Applied Materials sales miss forecasts; Gary Dickerson promoted to CEO

Applied Materials, the largest supplier of chip-making equipment, reported quarterly revenue that missed estimates and forecast sales that would fall short in the current period as customers postpone factory upgrades.

The company promoted Gary Dickerson to chief executive, replacing Mike Splinter, who will remain chairman.

Revenue in the fiscal fourth quarter will be unchanged from the third quarter, when sales were US$1.98 billion, the company said on Thursday.

Analysts on average had projected sales of US$2.06 billion in the third quarter and US$2.14 billion in the fourth.

Applied Materials' revenue projection missed estimates for a second straight quarter amid muted semiconductor demand and a record slump in the personal-computer market.

Companies that make chips on a contract basis, known as foundries, are concentrating on installing equipment they have already bought and will return to ordering later this year, Splinter said.

"We've seen this for the last few years where foundry spending in particular drops off in the third calendar quarter," he said. "We're going to see the orders come back before the end of the year."