UPDATE 2-Applied Materials outlook weak, to cut 1,800 jobs

Revenue fell 13 percent to $2.04 billion, ahead of the average analyst forecast of $1.94 billion, according to Reuters Estimates.

New orders in the quarter came in at $2.21 billion, comparable with a year ago.

Applied has been pushing aggressively into the solar equipment business, which the company thinks could make up as much as 25 percent of its sales in 2009. Some analysts point to the solar shift as a potential bright spot.

"To date, the macroeconomic liquidity issues have had less immediate effect on our solar business. However, we expect a period of pullback and reassessment in early '09," Splinter said.

In June, Dutch semiconductor equipment maker ASM International (ASMI.AS) turned down Applied's $800 million takeover bid.

Shares of Santa Clara, California-based Applied fell to $9.80 in after-hours trading, after closing down 6.6 percent at $9.95 on Nasdaq. (Reporting by Gabriel Madway in San Francisco and Tiffany Wu in New York, editing by Richard Chang)