Intels Q3 Net Income Down 77 Percent
Third-quarter revenues for Intel Corp. came in at $6.5 billion, a 25 percent drop from the third quarter in 2000 but a 3 percent jump from the second quarter this year.
In earnings announced Monday, the chip maker giant said net income was $655 million, down 77 percent from the same year ago period, and 23 percent from the second quarter of this year.
Earnings in the third quarter, which ended Sept. 30, were 10 cents a share, a drop of 76 percent from 41 cents in the third quarter in 2000.
"Intel delivered solid third-quarter results in a turbulent environment, with revenue and microprocessor units up from the second quarter," President and CEO Craig Barrett said in a prepared statement. "The actions taken to accelerate our desktop product roadmap have generated strong demand for the Intel Pentium 4 processor and the Intel 845 chipset platform."
Barrett also pointed to the Santa Clara, Calif., companys introduction of its 0.13 micron process technology as another positive sign. He said that despite the struggling economy, Intel continues to strengthen its position in the market and expects to see moderate growth in microprocessors and flash memory revenues in the fourth quarter.
Intel this year has slashed prices on many of its products in an attempt to gain back some of the market share lost to Advanced Micro Devices Inc., which saw its share grow to about 22 percent earlier this year.
Intel said the continuing unsettled economy makes it difficult to predict demand and growth, but said revenue for the fourth quarter should come in between $6.2 billion and $6.8 billion.
The company also expects that research and development spending for all of 2001 will be about $3.9 billion, less than the $4 billion initially expected, due primarily to a reduction in spending within ongoing programs.
Intel will provide a mid-quarter update on Dec. 6.