Intel's Q3 profit plunges 77 percent

Intel on Tuesday said its third-quarter net income plunged 77 percent before acquisition-related costs, but said it is confident it will see high growth when the economy recovers.

Net income for the quarter ended Sept. 29 was US$655 million, down from $2.9 billion a year ago, the chip maker said in a statement. Earnings were $0.10 per share, down from $0.43 per share in the third quarter of 2000, and in line with the consensus estimate of analysts polled by Thomson Financial/First Call.

Revenue for the quarter was $6.5 billion, down 25 percent from the year earlier, Intel said.

Including acquisition related costs, third-quarter net income was $106.0 million, a 96 percent drop from the previous year. Earnings per share including the additional costs were down 94 percent, to $0.02 per share, the company said.

Intel's President and Chief Executive Officer Craig Barrett called the results "solid" in a turbulent environment, and said that both revenue and microprocessor units were up from the previous quarter.

Economic conditions remain weak worldwide, however, and the company expects to see only "moderate" growth in both its processor and flash memory business in the fourth quarter, Barrett said in the statement.

Intel now expects fourth quarter revenue to be between $6.2 and $6.8 billion, Andy Bryant, Intel's chief financial officer, said in a conference call with analysts and reporters. Analysts had been expecting sales of $6.8 billion for the fourth quarter, according to a First Call estimate.

Third-quarter unit shipments grew sequentially in most major product categories, including processors, chip sets, motherboards and networking components, Bryant said.

Geographically, Intel saw revenue rise sequentially in every market except Japan, said Paul Otellini, general manager of the Intel Architecture Group. "Most mature markets in Asia continued to be soft, while emerging markets continued to grow," he said.

He acknowledged that the U.S. back-to-school market was "not particularly strong," but said Intel's business did strengthen overall in September.

The company's server business recovered somewhat during the quarter, when sales of its Xeon processor grew again after being down for two quarters, Otellini said. Pentium 4 shipments quadrupled, surpassing sales of Intel's Pentium III processor two weeks ago, he said. Shipments of flash memory products, widely used in cell phones and other gadgets, also increased, he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Douglas F. Gray

Computerworld
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?