Intel Q2 earnings fall short of expectations

Intel Q2 earnings fall short of expectations

Intel last week reported its second-quarter income grew 49 per cent from a year ago, to $US1.7 billion, although earnings per share fell short of analysts' expectations.

Earnings per share for the quarter, which ended June 26, were 51 cents, up from 33 cents per share a year ago but down from 57 cents per share in the first quarter. Thirty-one brokers polled by First Call Corp produced a consensus estimate of 53 cents per share for the quarter.

Revenues for the quarter were $6.7 billion, up 14 per cent from second- quarter 1998 revenue of $5.9 billion. Income for the quarter totalled $1.7 billion, up 49 per cent from $1.2 billion a year ago, but down 13 per cent from first-quarter 1999 income of $2 billion, Intel said.

Intel said it recovered share during the quarter in the market for processors used in low-cost PCs, where rival Advanced Micro Devices had been making some headway. AMD was due to report its second-quarter financial results last week.

"We regained market segment share in the value PC segment with the Intel Celeron processor," Craig Barrett, Intel's president and chief executive officer, said.

However, microprocessor shipments were down sequentially in the second quarter, and average selling prices for Intel's microprocessors also fell, the statement said.

"As expected, second-quarter revenue reflected a seasonal slowdown, and we look forward to a strong second half," Barrett added.

As of last week, Intel's stock was at $US65.38, down from its 52 week high of $71.84.

Intel Australia national sales manager Archie Wilson said that the local performance in the value PC segment was consistent with the global trend. He claimed that Intel's business in Australia was "particularly strong in the June quarter across all product lines".

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