SAN JOSE, Calif. (AP) Second-quarter profits at Intel Corp. fell 94 percent, but the worlds leading maker of computer chips beat Wall Streets expectations Tuesday.
In the three-month period ending June 30, Intel reported a net profit of $196 million, or 3 cents a share, down from $3.14 billion, or 45 cents a share, in the year-ago period. Revenue was $6.3 billion, down from $8.3 billion a year ago.
Excluding one-time events, Intel would have earned $854 million, or 12 cents a share. Analysts surveyed by Thomson Financial/First Call were expecting 10 cents a share.
Intel shares rose 77 cents to $29.90 on the Nasdaq Stock Market before the earnings report was released. The stock fell to $29.13 in the extended trading period.
Intels president and CEO, Craig Barrett, said the microprocessor business performed better than expected, though sales of communications and flash memory chips were soft.
Silicon Valley rival Advanced Micro Devices Inc. said last week that it also was being hit hard by low demand for flash memory chips, which are used in devices other than PCs, such as cell phones and digital cameras.
Barrett said Intel would speed up its rollout of the high-end Pentium 4 processor, getting the product to all mainstream PC vendors by the end of the year. With Microsoft rolling out its latest and more advanced operating system, Windows XP, Intel wants to give consumers another reason to upgrade.
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