Shares of Applied Materials Inc. (AMAT) - Get Report  fell Friday after the semiconductor maker reported earnings that beat forecasts but still reflected reduced global demand for semiconductors as it forecast lower sales in its second quarter.

Applied Materials shares were down 3.8% to $39.17 on Friday.

The chip-equipment maker said it earned $771 million, or 81 cents a share, in its fiscal first quarter vs. $165 million, or 16 cents a share, in the comparable year-earlier period. Revenue was $3.75 billion, down from $4.2 billion a year ago.

On an adjusted basis, which includes various acquisition- and tax-related expenses, the company said it earned 81 cents a share, down from $1.06 a share in the same period last year. Analysts surveyed by FactSet has been expecting earnings of 79 cents a share on revenue of $3.71 billion.

For its fiscal second quarter, Applied Materials said it now expects to post adjusted per-share earnings of between 62 cents and 70 cents, and revenue of between $3.33 billion and $3.63 billion. Analysts, on average, had been expecting adjusted earnings of 76 cents a share on sales of $3.66 billion, according to FactSet.

"Applied Materials delivered solid first-quarter results in a challenging business environment," CEO Gary Dickerson said in a statement. "As we navigate the current market dynamics, we remain highly optimistic about the long term and are investing in new technology, products and capabilities that position the company to play a bigger and broader role in the industry's future."

Global semiconductor sales reached $38.2 billion in December 2018, down 7% from December 2017, according to the Semiconductor Industry Association. For the fourth quarter of 2018, sales were slightly higher over the fourth quarter of 2017, though down 8.2% vs. the third quarter of 2018, the SIA said.

"Global demand for semiconductors reached a new high in 2018, with annual sales hitting a high-water mark and total units shipped topping 1 trillion for the first time," said John Neuffer, SIA president and CEO. "Market growth slowed during the second half of 2018, but the long-term outlook remains strong."