Intel, Broadcom, Apple Beat Forecasts

Microprocessor maker Intel Corp., communications chip leader Broadcom Corp. and Apple Computer Inc. all reported better-than-expected quarterly earnings on Tuesday.

But Apple’s stock, in particular, was hammered in after-hours trading, suggesting some investors had higher hopes.

Intel said revenue rose 23% to a record $8.3 billion in the second quarter versus a year ago.

The Santa Clara, Calif.-based firm’s operating income, excluding one-time acquisition costs, rose 19% to $2.8 billion from $2.35 billion a year earlier.

Net income jumped to $3.14 billion or 45 cents a share (adjusted for an upcoming 2-for-1 stock split) from $1.75 billion a year earlier. Net results were boosted by investment income from the company’s investment portfolio, one of the largest in Silicon Valley.

Per-share operating earnings slightly exceeded analysts’ expectations.

Intel’s basic chip business was hurt by parts shortages in the quarter. But analysts--and the company--expect stronger demand, and sales, in the second half.

Despite recent incremental gains by rival Advanced Micro Devices Inc., Intel held 82.1% of the market for PC microprocessors and 96% of the market for the most lucrative chips used in high-performance PCs as of April, according to Mercury Research.

Longer term, Intel will need to increase sales of processors for server computers that operate the Internet and corporate networks, said Ashok Kumar, analyst at U.S. Bancorp Piper Jaffray. “In the traditional PC market, the growth rates are going down,” he said.

Kumar predicted that Intel would benefit from a surge in the wireless phone market, which analysts expect to exceed 1 billion units by 2003. Intel offers a strong package of chips to third-generation cellular phones that should enable a wide range of high-speed Internet and messaging services.

Intel shares fell $3.31 to $143 in regular trading on Nasdaq, before earnings were announced, but rose to $146 after hours.

Irvine-based Broadcom reported a record quarter, with $245 million in revenue, a 105% rise over $119.5 million a year earlier.

Excluding one-time items Broadcom earned $57.4 million in the quarter, or 23 cents a share, up 186% from $20.1 million, or 9 cents, a year ago.

Already the fastest-growing chip maker ever, Broadcom is on pace to reach $1 billion in annual sales--a distinction it gained more quickly than any previous company, said analyst Mark Edelstone of Morgan Stanley Dean Witter.

Henry T. Nicholas III, Broadcom’s chief executive, credited a broad-based strategy--developing technologies to enable high-speed communications over a range of networks serving homes and businesses.

Broadcom shares fell $15.69 to close at $245.75 on Nasdaq before the results were reported. The stock edged lower in after-hours activity.

Apple’s fiscal third-quarter profit from operations rose 43% to $163 million, or 45 cents a share, before a gain from the sale of stock in chip maker ARM Holdings. Sales rose 17% to $1.8 billion.

Although Apple beat Wall Street’s average estimate of 44 cents, investors were disappointed by weaker-than-expected sales of the iMac computer. The stock fell $1.06 to $57.25 in regular trading on Nasdaq and then dived to $53 in after-hours trading.

Apple Chief Executive Steve Jobs will announce new products today at a trade show in New York, with others to follow more rapidly than in the last nine months, the firm said.

Apple projected revenue growth of at least 10% for the rest of this fiscal year. The company also announced it will begin selling its desktop and portable computers in Circuit City stores.

At a Glance

Other technology sector earnings reported Tuesday, excluding one-time gains or charges unless noted:

* Commerce One Inc., whose software and consulting services help businesses create online marketplaces, said its second-quarter loss widened to $16.2 million, or 10 cents a share, from a loss of $9.7 million, or 9 cents, a year ago. Analysts expected a loss of 21 cents. Sales soared to $62.7 million from $4.2 million.

* DoubleClick Inc., the largest online advertising company, said its second-quarter loss narrowed to $3.82 million, or 3 cents a share, from $4.29 million, or 4 cents, a year ago, beating the 5-cent average loss analysts expected. Revenue more than doubled to $128.1 million and operating expenses also more than doubled.

* RealNetworks Inc., maker of the top Internet media player software, earned $10.6 million, or 6 cents a share in the quarter, compared with a loss of $548,000, or break-even per share, a year ago. The results beat analyst forecasts by a penny. Revenue soared to $62.7 million from $28.5 million, led by premium versions of its free software for playing Internet audio and video files and of software that allows companies to create and distribute these files.

* Network Associates Inc., a maker of computer security software, earned $36.2 million, or 24 cents a share, 2 cents better than estimates, excluding amortization, other costs and the results of its 80%-owned McAfee.com Corp. Including those items, net income was $11.4 million, or 8 cents a share, compared with a loss of $195.8 million, or $1.41, a year ago. Sales climbed ninefold to $234 million.

* Unisys Corp., which warned last month of lower sales and earnings, said second-quarter profit tumbled 52% to $56.3 million, or 18 cents a share, because of falling mainframe and services revenue. The results were a penny below estimates that had been reduced after the company’s profit warning, its third in nine months. Revenue slid 16% to $1.59 billion. Unisys missed its own reduced estimate for revenue of $1.62 billion to $1.65 billion. It also said third-quarter sales will be down from the year-earlier quarter, resulting in earnings lower than the second quarter.