By Noel Randewich

(Reuters) - Chip equipment maker KLA-Tencor Corp's fiscal third-quarter revenue fell in line with analysts' expectations as manufacturers remained cautious about the economy and slow PC sales.

Net income fell to $166 million, or 98 cents per share, from $205 million, or $1.21 per share in the same quarter a year earlier, the company said in a statement on Thursday.

Revenue declined to $729 million from $841 million a year earlier.

Analysts on average were expecting third-quarter revenue of $727 million, according to Thomson Reuters I/B/E/S.

(Reporting by Noel Randewich; Editing by Phil Berlowitz)