Updated from 2:31 a.m. EDT with premarket price.

AMSTERDAM (

TheStreet

) --

ASML

(ASML) - Get Report

, the European chip-equipment maker, reported third-quarter earnings of 20 million euros ($29.8 million), down from year-earlier earnings of 73 million euros, but a swing from a loss in its latest second quarter.

The stock rose 2.5% to $32.44 in premarket trading on Wednesday.

Sales in the third quarter fell to 555 million euros from 696 million in the third quarter of 2008, but rose from sales of 277 million euros in the latest second quarter as bookings improved.

ASML said third-quarter bookings were valued at 777 million euros with 35 systems, leading to an order backlog valued at 1.35 billion euros as of Sept. 27.

The level was twice the level booked in the second quarter. "This level reflects accelerated technology investments in the DRAM memory and foundry segments after a nine-month period of very low capital spending," said Eric Meurice, president and CEO, in a statement Wednesday,.

Analysts surveyed by Thomson Reuters expected new machine bookings of 637 million euros.

ASML's announcement follows news Tuesday from

chip giant

Intel

(INTC) - Get Report

that third-quarter earnings and sales came in above Wall Street's estimates.

ASML said third-quarter gross margins were 34.4%.

The Dutch company said it expects fourth-quarter gross margins of about 37% on sales of about 550 million euros.

-- Reported by Joseph Woelfel in New York

.

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