Computer giant Intel posted a 35 per cent fall in third-quarter profit last night.
Profits fell to $1.3 billion, or 22 cents per share, compared to $2 billion, or 34 cents per share, a year earlier. However the company did beat analysts' expectations of a profit of $1.02 billion, or 17 cents per share.
Despite the fall in profits, the company indicated its battle over prices with Advanced Micro Devices may be easing and shares in the chip-maker rose as much as 2 per cent.
Intel gave a revenue forecast for the crucial fourth quarter that matched expectations, a relief for many investors frustrated with bearish guidance from the company all year.
Chief financial officer Andy Bryant said he expected average processor prices, which fell in the third quarter as Intel tried to clear inventories of unsold chips, to "firm up nicely" in the fourth quarter.
He said fourth-quarter revenue should be between $9.1 billion and $9.7 billion, in line with the average Wall Street forecast of $9.43 billion.