Intel Corp reported a 35 percent decline in third-quarter profits and a 12 percent decline in revenues on Tuesday, but the chip maker beat Wall Street's tepid expectations and shipped record numbers of microprocessors for mobile devices and computer servers.
Net income for the three months ended on Sept. 30 was US$1.3 billion, or US$0.22 a share, compared with US$2 billion, or US$0.32, in the same period last year.
Revenue fell to US$8.74 billion from US$9.96 billion.
Analysts had been expecting profits of US$1.01 billion on sales of US$8.62 billion, according to a survey by Thomson Financial.
Intel's chief financial officer, Andy Bryant, acknowledged on Tuesday that the company's performance bottomed out in the past two quarters, but he expressed confidence that performance would improve in the fourth quarter and throughout next year.
He said revenue in the current quarter would be between US$9.1 billion and US$9.7 billion, in line with analysts' expectations averaging US$9.46 billion.
"We lost share and were under pressure," Bryant said in a telephone interview after the earnings were released. "We still have to live with tough year-over-year comparisons ... but we think the worst is behind us."
Advanced Micro Devices (AMD) Inc has been dramatically gaining market share that Intel once had nearly to itself.
Analysts said Hewlett-Packard Co, Dell Inc, Lenovo Group Ltd (
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