Would Applied Materials spend its own money to finance projects that use its customers' solar panels? The answer is a resounding, "No."

A financial analyst posed that question during a conference call Tuesday to discuss Applied's third fiscal quarter earnings. During the call, Applied executives said the solar market remains weak because developers continue to have a tough time lining up project financing.

The financing idea isn't farfetched. First Solar recently set up a rebate program to promote installations of its thin-film solar panels in Germany, its largest market.

"We are not a bank, and we don't operate effectively as a bank," said George Davis, chief financial officer of Applied, during the conference call. "We are willing to work with customers to make their projects as financeable as possible."

Santa Clara, Calif.-based Applied sells equipment for making both crystalline silicon cells and amorphous silicon thin-film panels.

The company was able to narrow its third-quarter loss and boost sales for the energy and environmental solutions group, which is responsible for selling solar factory equipment.

During the quarter, the company's customers signed off on six factories using the SunFab thin-film equipment. But Applied didn't sign any new factory contract for its SunFab line.

Applied also saw a better-than-expected demand for its crystalline silicon solar equipment. 

The energy and environmental solutions division posted an operating loss of $53 million for the third fiscal quarter, compared with an operating loss of $93 million in the second fiscal quarter and an operating loss of $85 million in the third fiscal quarter of 2008.

The division generated $224 million in sales for the third fiscal quarter, down from $357 million in the previous quarter but up from $174 million in the third fiscal quarter of 2008.

Applied also makes factory equipment for manufacturing semiconductors and liquid crystal display (LCD) panels. Both lines of businesses are larger than its solar business.

The company posted an overall net loss of $55 million, or 4 cents per share, for the third fiscal quarter, compared with a net loss of $255 million, or 19 cents per share, for the second fiscal quarter. It recorded a net income of $165 million, or 12 cents per share, in the third fiscal quarter of 2008.

Applied generated $1.13 billion in sales for the third fiscal quarter, up from $1.02 billion in the previous quarter. The company brought in $1.85 billion in sales for the third fiscal quarter of 2008.