(Corrects first paragraph to say 52-week, not 52-month) (Recasts, adds details, share movement)
July 14 (Reuters) - Semiconductor material supplier ATMI Inc ATMI.O guided second-quarter results below Wall Street expectations on delayed shipments and weak sales to the memory chips market, sending its shares down 18 percent to their 52-week low.
The company, which makes materials used to deliver toxic gases used by the semiconductor industry, also lowered its earnings and revenue outlook for the full year.
The company expects second-quarter earnings of 30 cents a share on sales of about $89 million.
Analysts were expecting the company to earn 33 cents a share on revenue of $98.9 million for the quarter, according to Reuters Estimates.
ATMI said the weak revenue outlook reflects a delay in the shipment of some products to China because of security procedures related to the upcoming Olympic Games.
The ongoing weakness in the memory chip market has also affected sales, the company said in a statement.
Memory chip makers, including world No.1 Samsung Electronics Co Ltd (005930.KS), are finally emerging from a prolonged slump caused by oversupply and sluggish demand. But they are still under pressure to increase output at lower costs and spend more on cutting-edge technologies.
For 2008, the company now expects profit of $1.25 to $1.40 a share and revenue of between $375 million and $400 million, down from its earlier projection of earnings of $1.32 to $1.48 a share and revenue of $400 million to $420 million.
Analysts were expecting earnings of $1.41 a share on revenue of $405.2 million for the period.
In a separate statement, ATMI said it settled a 5-year-old patent litigation with Praxair Inc (PX.N), the largest industrial gases supplier in the Americas. Under the agreement, the companies will not make any settlement payments and can freely sell products that were disputed.
ATMI said it would benefit from reduced litigation spending in the second half of 2008 because of its settlement with Praxair.
Shares of the Danbury, Connecticut-based company were trading down more than 16 percent at $22.94 in morning trade on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Saumyadeb Chakrabarty)