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Intel net drops 57% in 2d quarter

Intel Corp. reported its biggest profit drop in more than four years and said it is unlikely to meet its full-year forecast after losing sales to Advanced Micro Devices Inc.

The world's largest semiconductor maker said second-quarter net income fell 57 percent to $885 million, or 15 cents a share, from $2.04 billion, or 33 cents, a year earlier. Sales dropped 13 percent to $8 billion, the bottom of Intel's forecast, the Santa Clara, Calif., company said.

Analysts expected Intel to turn a profit of 14 cents per share.

Market share gains by AMD, the number two maker of processors for personal computers, prompted Intel chief executive Paul Otellini to speed the introduction of products and slash prices. The anticipation of discounts starting this month led customers to delay purchases.

Intel forecast third-quarter sales will fall to between $8.3 billion and $8.9 billion, below an average estimate of $9.04 billion in a Thomson Financial survey of 27 analysts. (Bloomberg)

Macintosh sales lift Apple in period

Apple Computer Inc. said third-quarter profit rose 48 percent after the company sold more Macintosh computers than analysts expected.

Net income increased to $472 million, or 54 cents a share, from $320 million, or 37 cents, a year earlier, Cupertino, Calif.-based Apple said. That was 10 cents per share better than the mean forecast of analysts surveyed by Thomson. Sales climbed 24 percent to $4.37 billion.

Chief executive Steve Jobs surprised investors by saying Apple shipped 1.33 million Macs, more than the 1.25 million predicted by analysts. IPod sales growth slowed from the prior two quarters. (Bloomberg)

Stock option costs eBay results

EBay Inc., the world's largest online auctioneer, said second-quarter profit fell 14 percent as it expensed stock options. The company disclosed its first-ever stock buyback.

Second-quarter net income fell to $250 million, or 17 cents a share, compared with $291.6 million, or 21 cents, a year earlier, San Jose, Calif.-based eBay said. Sales increased 30 percent to $1.41 billion. Excluding stock option expensing costs of 4 cents and other items, eBay earned 24 cents, meeting analysts' estimates.

Revenue from PayPal, eBay's online-payment service, climbed 39 percent to $339.1 million, outpacing auction-related gains. Chief executive Meg Whitman is trying to boost sales from online payments and Internet telephone services amid stiffer competition from Google Inc. and other rivals.

EBay said it will buy back $2 billion of its shares over the next two years. The decision comes as the auction company's market value has been sliced in half since the end of 2004. (Bloomberg)

Charges, expenses hit RSA Security

RSA Security Inc., a provider of security software and hardware, said second-quarter profit plunged despite higher sales, as expenses and charges climbed. The Bedford company earned $2.8 million, or 4 cents per share, down from $8.5 million, or 12 cents per share, during the same period a year ago.

Adjusted earnings, excluding fees from RSA's proposed takeover by EMC Corp., and other expenses, totaled $10.6 billion, or 14 cents per share. Sales rose 23 percent to $94.4 million from last year's $76.5 million.

Analysts expected operating earnings, excluding options costs, of 14 cents per share, on sales of $91.2 million. (AP)

Teradyne records profit in 2d quarter

Teradyne Inc., the world's biggest maker of semiconductor testing equipment, reported a second-quarter profit and said it would repurchase up to $400 million of its stock.

Net income was $82.4 million, or 40 cents a share, for the period ended July 2, compared with a net loss of $45.5 million, or 23 cents, a year earlier, the Boston company said. (Bloomberg)

Cubist trims loss, revenue falls short

Cubist Pharmaceuticals Inc. of Lexington said that it narrowed its second-quarter loss, but revenue fell short of Wall Street expectations.

The loss was $5.1 million, or 9 cents per share, compared with a loss of $7.8 million, or 15 cents per share, a year ago.

Results for the latest quarter reflect stock option expenses of 5 cents per share, and a one-time early debt repayment charge of 10 cents per share.

Including the stock option expense, but excluding the one-time charge, yields a profit of 1 cent per share for the latest quarter.

Revenue, mostly from sales of the antibiotic Cubicin, rose 69 percent to $47.8 million, just shy of analyst estimates, from $28.3 million last year.

Analysts expected a loss of 5 cents per share on revenue of $49 million.

Estimates include the stock option expense, but generally do not include one-time expenses. (AP)

MBNA buy fuels Bank of America

Bank of America Corp. said profit topped $5 billion for the first time last quarter as its acquisition of MBNA Corp. fueled a surge in credit card fees.

Second-quarter net income exceeded analysts' highest estimate, rising 18 percent to $5.48 billion, or $1.19 a share, from $4.66 billion, or $1.14, a year earlier, the Charlotte, N.C.-based bank said.

Excluding merger costs, earnings were $5.6 billion, or $1.22 a share.

Revenue increased 25 percent to $18.5 billion, and would have risen 6 percent had MBNA been a part of the company in the year-earlier period, Bank of America said.

The bank was expected to earn $1.10 per share, the average estimate of 26 analysts surveyed by Thomson, which doesn't disclose what costs or other items may be excluded from its figures. (Bloomberg)

Rebound in trading powers JPMorgan

JPMorgan Chase & Co. said second-quarter profit more than tripled to a record as trading rebounded and fewer credit card customers defaulted on debts.

New York-based JPMorgan said net income climbed to $3.54 billion, or 99 cents a share, from $994 million, or 28 cents, a year earlier.

Revenue rose 19 percent to $14.9 billion.

JPMorgan was expected to earn 87 cents a share, according to a survey of 20 analysts by Thomson.

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