Applied Materials ( AMAT ) reported fiscal fourth-quarter earnings that missed analysts’ expectations, sending shares lower after the bell Thursday despite a revenue beat.

The semiconductor equipment maker saw revenue grow 5% year-over-year to $7.05 billion, above the analyst consensus from Visible Alpha. However, net income at $1.73 billion or $2.09 per share was down from $2 billion or $2.38 per share a year earlier and fell short of expectations.

Looking ahead, Applied Materials said it anticipates first-quarter revenue of $7.15 billion, plus or minus $400 million, below the analyst consensus at the midpoint. Its projection for earnings per share of $2.29 was above the consensus.

Sales in China Slow

Revenue from China totaled $2.14 billion, 28% lower than a year ago. Last month, analysts warned that Applied Materials and other semiconductor equipment makers could be hit by a slowdown in demand in the country for dynamic random access memory, a key data-storage component used in computers.

Applied Materials shares fell 4% in extended trading. They were up about 15% for the year through Thursday's close.