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FRANKFURT (Reuters) - German chip equipment maker Aixtron said on Tuesday its quarterly operating loss had widened as its stepped up investments in new tools and utilisation rates at its light emitting diode (LED) chip customers dropped.
The company said its loss before interest and tax (EBIT) for the third quarter through September widened to 17.9 million euros (14 million pounds) from 10.6 million in the second quarter.
Analysts in a Reuters poll had, on average, expected a loss of 10 million euros.
The company said it still expected 2014 revenue to remain flat compared with last year's 182.9 million euros, while its operating result would improve but remain in the red.
Aixtron said it was experiencing a pick-up in customer interest for its non-LED technologies and applications but it also warned that its LED customers were facing "very competitive industry dynamics".
"This could lead to further consolidation and also to continued requirements for lower total cost of ownership of equipment," the company said.
The warning comes a day after Samsung Electronics Co Ltd said that it will cease its LED lighting business outside of South Korea, reflecting what analysts said was growing competition from Chinese manufacturers.
Aixtron shares were indicated to open 2.8 percent lower, with the German blue chip index seen opening 0.7 percent higher.
(Reporting by Harro ten Wolde; Editing by Maria Sheahan)