Despite better-than-expected earnings, Applied Materials (AMAT) shares tumbled over 5% in early trading Friday following reports of a U.S. Department of Justic꧒e probe into potential export violations.

The semiconductor equipment maker is reportedly being investigated for evading 澳洲幸运5官方开奖结果体彩网:export restrictions and sending advanced chipmaking equipment worth hundreds of millions of dollars to Chinese chipmaker SMIC without export licenses.

Citing national security concerns, the U.S. has imposed export controls curbing sales of advanced chips and chipmaking equipment to China. The Justice and Commerce Departments💜 have also formed a task force to investigate and prosecute violations of these restrictions.

The news came as Applied Materials reported better-than-expected results, with fiscal fourth-quarter 澳洲幸运5官方开奖结果体彩网:net income of $2 billion and 澳洲幸运5官方开奖结果体彩网:earnings per share of $2.12, up from net income of $1.6 billion and earnings per share of $1.85 in the year-ago quarter, and above analyst estimates.

“Applied Materials delivered record revenue, earnings and cash flow in fiscal 2023 and is outgrowing the wafer fabrication equipment market for the fifth year in a row,” said Applied Materials CEO Gary Dickerson in a release.

China made up 44% of total sales, with the company suggesting China sales could remain "elevated" in the current period because of some large shipments to a computer memory customer. However, Applied Materials suggested China's share of its sales would shrink to around 30% over time.