Intel profit down
Intel , which has been struggling in the face of competition and shifting technology demands, said the profit excluding special items and stock compensation amounted to 27 cents a share, well ahead of the average Wall Street forecast of 17 cents.
Revenue for the three months to September 30 fell 12% from a year ago to 8.7 billion dollars.
"We’re pleased with the results of the third quarter, with record mobile and server processor shipments, strong manufacturing execution, industry acclaim for our new products, and quad-core processors now extending our leadership this quarter," said Intel president and chief executive Paul Otellini.
The results included charges related to a restructuring plan at Intel that includes cuts of some 10,500 workers from a payroll of 99,000 people worldwide.
The company also had to write off older processor inventory worth about 100 million dollars.
In July Intel shuffled management on the heels of a lacklustre earnings report and the dismissal of 1,000 managers at its facilities worldwide.
Intel’s drive to trim costs and improve efficiency came as it waged a price war with Silicon Valley rival Advanced Micro Devices (AMD).
Intel is moving into so-called quad-core processors, aimed at handling more computing tasks, in an effort to stay ahead of its rival.
In its earnings report, Intel acknowledged that profits were being squeezed by tough competition in chips for computers, which have seen prices fall.
"Pricing remained competitive, notably in the desktop segment," the company said.
In the fourth quarter, Intel said it sees revenues in a range of 9.1 billion to 9.7 billion dollars – which would be down from 10.2 billion in 2005, and gross profit margins of around 50%.
The Santa Clara, California company said it plans to spend between 2.7 billion and 2.8 billion dollars on research and development in the coming quarter.
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