Applied Materials Profit Falls 45%

Computer chip equipment maker Applied Materials Inc. said its profit fell 45% in the latest quarter, reflecting lower sales and higher spending. The Santa Clara-based company earned $102.1 million, or 54 cents a share, in its second quarter, down from $185.8 million, or $1.01 a share, a year earlier. Sales fell 20.1% to $900.9 million from $1.1 billion. The results, while down from a year ago, were slightly ahead of expectations. Industry analysts expected the company to report a profit of 50 cents a share. Chairman James Morgan attributed the decline in second-quarter profit to reduced business volume and increased investment in product development. Applied Materials reported results after the market closed. Its stock fell $1.19 to $60.44 on Nasdaq.