NEW YORK (AP) -- A $1.9 billion solar equipment deal for Applied Materials Inc. has shrunk to $250 million because of deteriorating economic and financial market conditions, according to a regulatory filing late Monday.
The company did not disclosed the name of the privately held buyer for its SunFab solar panel equipment but said it recently amended the agreement to cut production capacity.
Shares tumbled 77 cents, or 6.7 percent, to $10.79 in morning trading Tuesday.
"While subsidies have been a major support for many solar cell companies, we believe that other means of financing have slowly dried up given the risk profile and tightening credit markets globally," Stifel Nicolaus & Co. analyst Patrick Ho told clients in a note Tuesday.
He warned that other contract revisions could follow for the Santa Clara, Calif., company. But he reiterated a "Buy" rating on shares, calling the company's solar business "a high growth opportunity."