Citing the September 11th attacks on New York, Compaq Computer warned last night that its third-quarter results would be worse than Wall Street's already lowered expectations.

The Houston-based computer maker, which employs 2,200 in Ireland, now expects a third-quarter operating loss of five to seven cents a diluted share, compared to an expected profit of five cents a share.

Revenue for the third quarter is expected to be in the range of $7.4 to $7.5 billion (€8 - €8.19 billion), down 12 per cent on the same quarter last year. Wall Street had expected revenue of about $8.19 billion.

The disruption caused by the attacks disproportionately affected the third quarter, according to Mr Michael Capellas, Compaq chairman and CEO.

Compaq has a software development centre in Galway. It maintains its customer support centre for Europe and the Middle East at Clonskea and a technical support centre on North Circular Road, Dublin.