Posted on 01/14/2004 2:19:59 PM PST by HAL9000
SAN JOSE (AP) -- Intel Corp. posted better-than-expected profits and record revenue in the fourth quarter, a period marked by robust global demand for the company's computer chips in laptop, desktop and business machines.The results offered strong vindication of Intel's decision to continue spending on research and equipment during the darkest months of the technology downturn. However, Intel's stock slid 3 percent after the report.
"We ended the year on a high note as ongoing strength in emerging markets coupled with improving demand in established markets drove revenue to record levels," said Craig R. Barrett, Intel's chief executive.
For the three months ended Dec. 27, Intel earned $2.17 billion, or 33 cents a share, compared with $1.05 billion, or 16 cents a share, in the fourth quarter of 2002.
Sales totaled $8.74 billion, up 22 percent from $7.16 billion in the year-earlier period. The revenue total edged Intel's previous one-quarter record of $8.73 billion, posted in the third quarter of 2000.
Analysts expected Intel to post a profit of 25 cents per share on sales of $8.65 billion, according to a survey by Thomson First Call. Last month, Intel narrowed its fourth-quarter sales forecast to between $8.1 billion and $8.7 billion.
Despite the strong showing, Intel's share price fell 97 cents to $32.42 in extended trading. In advance of the earnings news, shares of Intel fell 20 cents on the Nasdaq Stock Market.
The latest results included a $611 million charge related to a struggling division that makes chips for cell phones and handheld computers. Intel warned of the charge last month and announced plans to merge the troubled business with another division.
But Intel's core microprocessor business continued to show strength, including its heavily marketed Centrino bundle for wireless laptops.
For all of 2003, Intel earned $5.64 billion, or 85 cents per share, on sales of $30.14 billion. In 2002, it earned $3.12 billion, or 46 cents per share, on sales of $26.76 billion.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.