Apple Computers has reported a loss for the latest quarter that was far lower than Wall Street expected, but said it will not return to profitability later this year, as it had predicted. The computer maker said unit shipments of its Macintosh personal computer fell 17 per cent in the quarter, but strong sales abroad and to schools in the United States produced better-than-expected revenue.

Apple also cut costs more aggressively than analysts had expected.

"They made a very strong comeback in Japan because of Powerbook (laptops), and they did very well in US educational markets," said Mr William Milton at investment bank Brown Brothers Harriman in New York.

Apple employs 1,500 people in Cork, its European headquarters.

For its fiscal third quarter ended June 27th, Apple lost $56 million (£37.3 million), or 44 cents a share, compared with a loss of $32 million, or 26 cents a share, a year earlier.

Last year's results included a $39 million gain from the sale of an investment.

Wall Street expected Apple, based in Cupertino, California, to post a loss of 61 cents a share, according to First Call, which tracks earnings estimates.

Revenue fell 23 per cent to $1.7 billion from $2.2 billion.

Some analysts had expected Apple to report a disastrous quarter because the company's board of directors ousted chairman and chief executive officer Mr Gilbert Amelio last week. - (Reuter)