Intel Beats Revised Estimates

After warning last month that demand for PCs in Europe would weaken third-quarter earnings, Intel on Tuesday reported a profit of $2.9 billion, or 41 cents a share, and record quarterly revenue of $US8.7 billion.

The net income, excluding acquisition-related costs, was up 52 per cent from the third quarter of 1999, but down 18 per cent from the second quarter of this year. Revenue was up 19 per cent from the third quarter of 1999 and up 5 per cent from the second quarter, which also had set a quarterly record, Intel said in a release.

The per-share income result beat the consensus forecast of 38 cents by 24 analysts polled by First Call/Thomson Financial.

On Sept. 21 Intel warned that expected third-quarter earnings would be lower mainly due to weak demand in Europe. Intel said then that third-quarter revenue would be about 3 per cent to 5 per cent higher than second-quarter figures of $US8.3 billion.

Including acquisition-related costs, third quarter net income was $US2.5 billion, up 72 per cent from the third quarter of 1999 and down 20 per cent from the second quarter. Earnings per share were 36 cents, up 71 per cent from 21 cents in the third quarter of 1999 and down 20 per cent from the second quarter.

In the release, Craig R. Barrett, president and chief executive officer, said Intel achieved record revenue with 19 per cent growth in the third quarter despite challenges during the quarter brought on by PC demand in Europe that was weaker than expected.

Barrett said Intel anticipates record revenue in the fourth quarter, with growth across most of its product lines. The company is pleased with the growth of its server business, its record flash business, and its networking silicon business.

Intel, based in Santa Clara, California, can be reached via the Internet at http://www.intel.com/.

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