Computer giant Intel has said its profits for the last three months of this year will be higher than it initially expected. The company, by far the world's largest microchip maker, employs some 4,000 people in Ireland, mainly at its Leixlip manufacturing and development centre.
Intel attributed the upswing in its fortunes to strong demand for PC products across all markets.
"When the company announced third quarter earnings in October, the expectations were that revenue in the fourth quarter of 1998 would be up slightly from the third quarter revenue of $6.7 billion (£4.5 billion)," Intel said yesterday. "The company expects revenue for the fourth quarter of 1998 to be up approximately 8 to 10 per cent from third quarter revenue of $6.7 billion."
Investors had feared that Intel would lead a slowdown in growth across the technology sector. In March Intel warned that its profits for the previous quarter would be lower than expected.
However the group has benefited from a rebound in demand from the first half of this year, when there was a glut of PCs on the market.
According to First Call, which tracks analysts' forecasts, Intel had been expected to earn 95 cents a share. In the last quarter of 1997, Intel earned 98 cents a share, or $1.7 billion, on revenue of $6.5 million.
Analysts said yesterday's announcement was likely to see earnings come in at $1.05 per share, on revenue of $7.5 billion.
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