Applied Materials Inc , the world's largest producer of chip-making gear, posted lower quarterly profit on Wednesday, but beat Wall Street estimates and said it planned to cut jobs globally.
The company also expects net sales to increase 30 percent in fiscal 2010, even as it plans to cut up to 1,500 jobs, or up to 12 percent of its global workforce, over 18 months to reduce costs.
Applied Materials said the jobs cuts and other restructuring in fiscal 2010 is expected to achieve total annualized cost savings of about $450 million when completed.
Applied Materials shares were up nearly 2.5 percent at $13.58 in after hours trading after closing at $13.25 on the Nasdaq.
The company said net income during the fourth quarter fell to $137.9 million, or 10 cents a share, compared with a year- ago net profit of $231.1 million, or 17 cents a share.
Revenue fell to $1.53 billion during the quarter from $2.04 billion a year ago.
Analysts on average forecast a profit of 3 cents a share and revenue of $1.32 billion, according to according to Thomson Reuters I/B/E/S.
(Reporting by Poornima Gupta; editing by Andre Grenon)