Sector Snap: Chip equipment makers fall

Late Tuesday, Fremont, Calif.-based Mattson estimated an adjusted loss of 24 cents to 26 cents per share for the quarter, worse than a previously predicted loss of 10 cents to 17 cents per share. Analysts polled by Thomson Financial predicted a loss of 11 cents per share.

Mattson also lowered its revenue forecast below analyst estimates.

Shares of the company fell in aftermarket activity Tuesday following the announcement. By midday Wednesday, Mattson stock was down 39 cents, or 7.9 percent, at $4.53. The stock hit a 52-week low of $4.20 earlier in Wednesday's session.

In lowering its guidance, Mattson cited weakness in the chip market, and lower shipments to some major memory-chip customers.

Citi analyst Timothy M. Arcuri said that lower shipments to key memory chip player Samsung were likely behind the outlook reduction. In a note to clients, he said that Samsung "is showing signs of a weakening commitment to its spending strategy."

Furthermore, Arcuri predicted orders of chip manufacturing equipment will be flat to 5 percent lower in the third quarter.

Separately, Stifel Nicolaus analyst Patrick Ho said that Mattson's disappointing preannouncement "is entirely market related and not due to any competitive pressures."

He added that although Mattson's weak estimates were not entirely unexpected, the size of the shortfall was greater than anticipated.

"Looking forward, unfortunately, we believe the struggles for Mattson are likely to persist as we do not see any industry turnaround in the foreseeable future," he wrote in a note to investors.