Applied Materials Feels Flat-Panel Slowdown

Splinter said he expects Applied's silicon business to grow by more than 10% in fiscal 2007, outpacing the broader industry.

But executives warned of a "modest pullback" among customers in the current quarter.

Applied projected that sales will decline 5% to 10% sequentially in its fiscal first quarter. That suggests a revenue range of $2.41 billion to $2.28 billion, below the average analyst expectation of $2.46 billion.

Applied pegged EPS between 26 cents and 27 cents, including 3 cents in stock-compensation and acquisition-related charges. Analysts were looking for 29 cents a share, although it was unclear whether that included any of the charges.