Apple last night reported earnings that fell slightly short of the analyst forecasts, which had been reduced last month after the company warned of a sales shortfall.

Apple is a substantial employer in the Republic and employs around 1,000 people in Cork. It cut 450 jobs in early 1999 in Cork when it shifted production of the iMac computer from its plant there.

Apple said it earned $108 million (€128.68 million) or 30 cents per diluted share in the quarter, excluding certain unusual gains.

Most analysts had been forecasting fourth quarter earnings of 31 cents per share, according to First Call/Thomson Financial, which surveys results.

Including all the unusual items, Apple had a net profit of $170 million or 47 cents per diluted share, compared with $111 million or 31 cents per diluted share in the year-ago quarter.

Apple said revenues rose to $1.87 billion, up 40 per cent from the same quarter last year. Analysts had been forecasting revenues of $1.87 billion.

Last month Apple said its fourth quarter profit would be as much as 33 per cent below Wall Street's forecasts. That warning dragged down other personal computer stocks when announced.

Apple had blamed slower than expected sales in September across all sectors. Its chief financial officer, Mr Fred Anderson, said there had been a particular weakness in its sales to the education sector which normally peak in September. There was also disappointment about sales of its PowerMac G4 Cube, the centrepiece of the group's recent string of product launches.

Although the Cube appeared to be the ultimate fashion accessory, there was growing concerns about some of its features, including the appearance of its casing.