Entegris ( ENTG) reported a decline in third-quarter earnings, despite an increase in revenue, but both figures topped analysts' estimates, which the company attributed to an improved data storage market and strength in some of its new markets. In the quarter ended May 31, the company earned $4 million, or 5 cents a share, compared with $5.2 million, or 7 cents a share, in the year-ago third quarter. Analysts were expecting 3 cents a share. Excluding two tax benefits, last year's quarterly earnings were 4 cents a share. Revenue was $70 million, up 29% from the second quarter. The company had sales of $59.7 million in the year-ago quarter. Analysts expected revenue of $67.3 million in the third quarter. "We attribute our higher sales to improved conditions this quarter in the semiconductor and data storage markets, strength in our new markets of services and life sciences and contributions from our second quarter acquisitions, which performed as anticipated," said Chief Executive Jim Dauwalter. Gross margin for the quarter was 43.5%, compared with 47.1% last year and 41.7% for the second quarter. Looking to the fourth quarter, Entegris believes sales will be flat with the third quarter's results, but the company said gross margins should improve slightly because most transition costs related to recent acquisitions will be over. Analysts expect the company to earn 5 cents a share in the fourth quarter on revenue of $70 million. Shares of the Chaska, Minn., company were down about 1.9% recently to $13.16 on the Nasdaq.