Intel, which employs over 4,000 people at its microchip plant in Leixlip, Co Kildare, last night announced strong third quarter revenue growth of 9 per cent, in line with analysts' expectations, although profits were slightly down on forecasts.
The world's largest maker of semi-conductors stated that it looked forward to seasonally strong growth for the fourth quarter, helping it produce the next generation of its Pentium III microprocessor.
It stated that the microprocessor business had been solid during the third quarter with record shipments of units. The Pentium III microchip, which is produced in Leixlip, is now the largest volume product in the company's portfolio, a spokesman said.
Third-quarter net income (after-tax profits) amounted to $1.9 billion, up 21 per cent on $1.6 billion made in the same period in 1998.
But the results were below brokers' expectations that earnings would rise to 57 cents per share. Third-quarter earnings, excluding acquisition-related costs, were 55 cents per share, an increase of 22 per cent from the 45 cents earnings per share reported last year and up 6 per cent on the second quarter.
The spokesman said that once-off charges of $456 million relating to acquisitions had reduced the earnings-per-share figure. Acquisitions had become a major feature of Intel's strategy of moving into the "Internet economy".
Including acquisition-related costs, net income was $1.5 billion, down 6 per cent from last year, and down 17 per cent on the second quarter of this year.
Leixlip is undergoing a $750 million investment to prepare it for microprocessor production on 0.18 micron process technology.
Revenue was up between July-September by 9 per cent to $7.3 billion with the company benefiting from a seasonal upturn in demand for PCs.
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