Intel Earnings Up But Below Expectations

The company said revenue for the quarter was $6.5 billion, down from $6.55 billion in the third quarter of last year. On the positive side, net income rose a full 547 percent, to $686 million from $106 million last year.

The company's earnings per share came in at 11 cents, excluding one-time charges. Analysts were expecting a profit of 13 cents per share on sales of $6.9 billion, according to Thomson First Call.

"Although the industry is experiencing one of its worst downturns ever, we continue to move our technology forward, introducing 18 new processors during the quarter, all on our leading-edge 0.13-micron technology," said Intel CEO Craig Barrett in a statement.

Looking forward, the company said that while continued uncertainty makes it difficult to predict demand, it expects fourth quarter revenue to be between $6.5 billion and $6.9 billion. The company said capital spending will come in at about $4.7 billion for 2002 ($4 billion of that in R and D), just below previous expectations of between $5 billion and $5.2 billion.