Applied Materials Sags on Weak Demand

SAN FRANCISCO -- Applied Materials'(AMAT Quote) bottom line fell more than 25% in its fiscal second quarter, as demand for the company's semiconductor manufacturing equipment continues to stagnate.

The company said the market for chipmaking tools had weakened considerably from its previous expectations, and it projected financial results for the current quarter that were sharply below analysts' expectations.

Customer spending on the equipment made by Applied and other companies will be "down considerably" from earlier expectations, CEO Mike Splinter said in a post-earnings conference call, citing weaker-than-expected demand for flash memory chips as the main culprit. ...