* Sees fourth-qtr adj earnings/share $0.16-$0.20 vs est
* Gary Dickerson to succeed Michael Splinter as CEO
* Third-qtr adj earnings/share $0.18 vs est $0.19
* Third-qtr revenue $1.98 bln vs est $2.06 bln
* Shares down 3 pct after market
(Adds outlook from conference call; updates share movement)
By Neha Alawadhi
Aug 15 Chip gear maker Applied Materials
said it expects foundry customers to hold back spending
in the current quarter as they switch to making smaller chips.
Shares of the company, which develops, manufactures and
sells a wide range of equipment for making integrated circuits,
fell about 3 percent in extended trading on Thursday.
Demand for chips using the next-generation 20-nanometer (nm)
process technology, which crams more computing power into
smaller micro-circuits, is expected to rise in the second half
of this year.
"We are seeing a near-term slowdown in investment by our
foundry customers as they focus on ramping (production using)
new capacity installed over the past two quarters," said Michael
Splinter, Applied Materials' chief executive of more than 10
Applied Materials president Gary Dickerson will replace
Splinter as CEO on Sept. 1.
The company said it expects current-quarter revenue to be
little changed from the $1.98 billion it reported for the third
The company, whose customers include Samsung Electronics Co
Ltd and Taiwan Semiconductor Manufacturing Co Ltd
, forecast fourth-quarter adjusted earnings of 16-20
cents per share.
Analysts on average were expecting earnings of 21 cents per
share on revenue of $2.14 billion, according to Thomson Reuters
Orders will remain "flattish" in the three months ending
October after a decline in the third quarter as foundry
customers switch to 20 nm process technology, RBC Capital
Markets analyst Mahesh Sanganeria said in a pre-earnings note.
Applied Materials expects customer spending to pick up in
the last three months of 2013, Splinter said on a conference
The company's net income fell to $168 million, or 14 cents
per share, in the third quarter from $218 million, or 17 cents
per share, a year earlier.
Excluding items, the company, which also provides
manufacturing equipment and services for flat panel displays,
solar photovoltaic and related industries, earned 18 cents per
Revenue fell 16 percent to $1.98 billion in the quarter
ended July 28.
Analysts had expected earnings of 19 cents per share on
revenue of $2.06 billion.
Applied Materials shares closed at $15.33 on the Nasdaq on
(Reporting by Neha Alawadhi and Supantha Mukherjee in
Bangalore; Editing by Joyjeet Das)