Apple Computer last night announced fourth quarter profits ahead of expectations and the previous quarter but fell short on sales.

The company, which employs about 1,000 people at its Cork plant, said fourth-quarter operating earnings were $65 million (E;72 million), or 18 US cents per share - topping the consensus forecast of 16 cents and one cent ahead of the third quarter. Sales for the period ending in September dropped to $1.45 billion from $1.87 billion, below the $1.48 billion forecast and the $1.475 in the third quarter. For the year, the company reported a net loss of $25 million on revenues of $5.36 billion, compared to net earnings of $786 million on $7.98 billion in revenues in 2000.

"We're pleased to have delivered solid results while maintaining lean channel inventories in a very challenging environment," said Mr Fred Anderson, Apple's chief chief financial officer. The company expects quarter revenues of at least $1.4 billion and earnings per share of at least 10 US cents for the next quarter.