About 3,400 people working at Intel Ireland facilities in Leixlip and Shannon will share a profit bonus worth about €3.3 million, following the company's latest quarterly results.

Details of the payout were revealed to staff yesterday following the publication of Intel's 2004 second quarter results, which show the firm almost doubled its profits over the same period last year to $1.8 billion.

Despite meeting expectations for its second quarter financial results, Intel shares fell 8 per cent in early trading yesterday as investors reacted to its prediction that profit margins would be lower than expected this year.Intel lowered its forecast gross profit margin for the year to around 60 per cent from 62 per cent.

It also said inventories had grown, raising fears that the semiconductor sector may be headed toward a cyclical downturn.

Intel shares closed down $2.76 at $23.38 on the Nasdaq exchange.

The US chip manufacturer confirmed that the average payout to each Irish staff member would be worth an average of about €980 per person before tax.

An Intel spokeswoman said that employees were eligible for an average bonus payout worth 8.5 days' salary from Intel's employee cash bonus scheme.

This bonus programme is a type of profit-share arrangement that Intel operates to let its staff benefit directly from the success of the firm.

Earlier this year, Intel's Irish employees shared a further €8.3 million in bonus payments. This payout was made as part of Intel's profit scheme and two separate performance bonuses that were paid out to staff in January.

The two performance-related bonus schemes are based on individual employee performance following evaluation by their Intel peers and managers.

Intel employs about 3,400 staff at its manufacturing plant in Leixlip and its centre in Shannon. Last month it said it would invest €2 billion to build an extension to its fabrication plant.