By Matthew Fordahl AP Technology Writer Tuesday, October 16, 2001; 4:34 PM
SAN JOSE, Calif. -- Chip-making giant Intel Corp.'s third-quarter profits fell 96 percent, but met Wall Street expectations despite a sluggish economy that has worsened since the Sept. 11 terror attacks.
For the three months ended Sept. 29, the company earned $106 million, or 2 cents per share, compared with $2.51 billion, or 36 cents a share, in the same period a year ago.
Excluding acquisition-related costs, net earnings were $655 million, or 10 cents a share, compared with $2.9 billion, or 41 cents a share a year ago.
Analysts were expecting profits of 10 cents per share, according to a survey by Thomson Financial/First Call.
"Intel delivered solid third-quarter results in a turbulent environment, with revenue and microprocessor units up from the second quarter," Craig R. Barrett, Intel's chief executive, said Tuesday.
Third-quarter revenue fell 25 percent to $6.5 billion, compared with $8.7 billion a year ago. Analysts were expecting third-quarter sales of about $6.4 billion.
During a mid-quarter update in early September, Intel said third-quarter revenue was on track with forecasts provided in July. The company made no comments on results after the Sept. 11 attacks.
The company said it expects fourth-quarter revenue to be between $6.2 billion and $6.8 billion, compared with $8.7 billion in the same period last year. Analysts are expecting $6.8 billion.
More details were expected later Tuesday after Intel's quarterly conference call with analysts.
The third-quarter earnings were released after the market closed. Shares of Intel closed up 58 cents Tuesday to $24.96 on the Nasdaq Stock Market.