May 14, 2020 / 8:20 PM / 23 days ago

UPDATE 1-Applied Materials misses quarterly revenue estimates, shares fall

(Adds details on forecast, background, shares)

May 14 (Reuters) - Chip gear maker Applied Materials Inc missed market estimates for quarterly revenue on Thursday, joining a slew of semiconductor firms that have borne the brunt of disruptions and fall in demand due to the coronavirus outbreak.

Shares of the company fell about 3% in extended trading.

The pandemic has wreaked havoc on the chip industry, as strict lockdown rules globally to curb the spread of the virus have disrupted operations and supply chains, even though many plants were eventually allowed to remain open.

The Santa Clara, California-based company had earlier flagged that various government orders in the United States and other countries, as well as reductions in airline schedules around the world were majorly disrupting its supply chain.

“Based on the visibility we have today, our supply chain is recovering, and underlying demand for our semiconductor equipment and services remains robust,” Chief Executive Officer Gary Dickerson said in a statement.

The company did not provide a forecast for current quarter revenue, breaking away from tradition.

Revenue rose nearly 12% to $3.96 billion in the second quarter ended April 26, but fell short of analysts’ average estimate of $4.13 billion, according to IBES data from Refinitiv. (Reporting by Akanksha Rana and Munsif Vengattil in Bengaluru; Editing by Shailesh Kuber)

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