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MEMC Hit on Profit Slip

Shares fall 4%.

MEMC Electronic Materials

(WFR)

, a producer of wafers for the semiconductor industry, said its third-quarter earnings fell 10.4% despite rise in revenue.

The St. Peters, Mo.-based company earned $91 million, or 40 cents a share, in the quarter, compared with $101.6 million, or 45 cents a share, a year ago. Adjusted for items, earnings were 56 cents a share. On that basis analysts polled by Thomson First Call were expecting earnings of 51 cents a share in the most recent quarter.

Third-quarter revenue rose 45.3% to $407.9 million as against analysts' expectation of $390.3 million.

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Higher revenue was led by increased product volumes and higher selling prices, the company said.

The company expects fourth-quarter revenue of $410 million to $415 million. It also targets 100 basis point improvement in the gross and operating margins over the previous quarter.

The company also announced a $2.5 billion to $3 billion agreement to supply solar wafers to Gintech. With this announcement, MEMC now has agreements to supply solar wafers worth $7 billion to $9 billion over the next ten years.

Shares fell $1.52 to $37.31.

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