Bangalore: Intel Corporation on July 17 announced second-quarter revenue of $ 6.3 billion, down 7 per cent sequentially and approximately flat year-over-year, according to a press release.

Second-quarter net income was $ 446 million, down 52 per cent sequentially and up 128 per cent year-over-year. Earnings per share were $ 0.07, down 50 per cent sequentially and up 133 per cent from $ 0.03 in the second quarter of 2001.

The results include a $ 106-million charge to cost of sales related to the decision to wind down Intel Online Services, along with a $ 112- million write-off of acquired intangibles, primarily related to Xircom PC cards for wireline networking. In accordance with generally accepted accounting principles (GAAP), the 2001 results reflect charges for the amortization of goodwill, which is no longer amortized in the current year with the adoption of FASB rule 142, the release said.

Second-quarter net income excluding acquisition-related costs was $ 620 million, down 39 per cent sequentially and down 27 per cent year-over-year. Earnings excluding acquisition-related costs were $ 0.09 per share, down 40 per cent sequentially and down 25 per cent from $ 0.12 in the second quarter of 2001. These results include the impact of the $ 106-million charge related to the online services business.

Acquisition-related costs during the quarter consisted of $ 14 million in one-time charges for purchased in-process research and development, and $ 229 million in amortization of acquisition-related intangibles, write-off of intangibles and other costs. Intel expects to continue to report earnings excluding acquisition-related costs through the end of the year to provide a consistent basis for financial comparisons.

"In a tough environment, we continued to execute well. Our investments in technology and manufacturing are delivering processors with clear performance leadership, resulting in market segment share gains across the board. We also saw growth in our communications businesses, led by solid flash memory revenue and share growth," Intel chief executive officer Craig R Barrett said.

Although an overall industry recovery has been slow to materialise, we still expect a modest seasonal increase in demand in the second half. In this environment, our strategy remains the same: Focus on execution, take prudent cost-cutting measures, and invest to further improve our competitive position and long-term growth prospects," he said.