Financial roundup: Intel, Apple, Nextel report earnings

Computer chip maker Intel Corp. late today reported lower-than-expected revenue totaling $6.3 billion for its second quarter, ended June 29, and said it would cut 4,000 jobs later this year.

The company said the job cuts will come in the second half of the year mostly through attrition, voluntary separation programs and some "targeted business disinvestments." The company has about 83,400 workers, according to 2001 figures.

No further details about the cuts were immediately available.

Revnue for the quarter was essentially unchanged from the figures Intel posted in the year-earlier quarter.

Earnings were 7 cents per share, down 50% from the previous quarter, but up 133% from 3 cents per share in the second quarter of 2001.

Second-quarter revenue was also down from the previous quarter, when the company reported $6.8 billion in revenue.

"In a tough environment, we continued to execute well," Intel CEO Craig Barrett said in a statement. "Although an overall industry recovery has been slow to materialize, we still expect a modest seasonal increase in demand in the second half."

The company said it expects revenue for the third quarter to be $6.3 billion to $6.9 billion.

Last month, Intel warned that earnings would likely be less than anticipated. Those revised second-quarter estimates called for revenue of $6.2 billion to $6.5 billion, down from $6.4 billion to $7 billion. The lower numbers are being blamed on slack demand for chips in Europe, according to the company.

Also reporting financial results today was Apple Computer Corp., which announced that it earned $1.43 billion in revenue in its fiscal third quarter, ended June 29, down 3% from the same period one year ago.

The computer maker said it brought in a net profit of $32 million, or 9 cents per diluted share. That compared with a net profit of $61 million, or 17 cents per diluted share, in the same quarter of 2001. The company said it shipped 808,000 Macintosh computers during the quarter, down 2% from a year earlier.

"Even in this extended worldwide downturn, Apple is continuing to be profitable and continuing to innovate," said Steve Jobs, Apple's CEO, in a statement.

Jobs said the company is working to attract new customers and will reveal some of its new products at the Macworld show in New York tomorrow.

Last month, Apple blamed slack sales and weak demand in Europe and Japan for its lowered estimates. At the time, it predicted that revenue would be about $1.4 billion to $1.45 billion, down from earlier guidance of about $1.6 billion. The company had also revised its earnings guidance to 8 to 10 cents per diluted share.

Meanwhile, wireless service provider Nextel Communications Inc. today recorded its first-ever profitable quarter.

For the company's second quarter, ended June 30, the Reston, Va.-based company reported net income of $123 million, or 37 cents per share, compared with a loss of $369 million, or 56 cents per share, in the second quarter of 2001.

Analysts surveyed by Boston-based First Call/Thomson Financial had forecast a loss of 24 cents.

Revenue for the quarter was $2.2 billion, up from the $1.7 billion reported in the second quarter 2001.

The company attributed its profit to strong customer demand, cost cutting and debt reduction. "Our operating strategies are working," Jim Mooney, Nextel's executive vice president and chief operating officer, said in a statement. "Customer revenue remains strong due largely to enhanced usage, and customer retention is among the best in this competitive industry."

Copyright © 2002 IDG Communications, Inc.

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