Apple continued its financial recovery last night, surprising analysts with better-than-expected second quarter results.

The computer company, which makes its high-end G3 model in Cork, said profits for the latest quarter more than doubled to $135 million (€125 million), or 84 cents a share, compared to $55 million last year.

Analysts had predicted earnings of around 57 cents a share.

"We are delighted that Apple grew faster than the industry in its sixth consecutive profitable quarter," said the firm's interim chief executive, Mr Steve Jobs.

"Demand for iMac exceeded our most optimistic forecasts, with Apple's share of the US retail and mail order desktop sales climbing as high as 12.5 per cent during the quarter."

Mr Jobs, who set up the company in his family garage in 1976, was ousted in 1985, then returned two years ago to nurse it back to financial health, said revenues for the period were $1.53 billion, up 9 per cent from $1.4 billion a year ago.

He said gross margins were 26.3 per cent, up from 24.8 per cent in the 1998 quarter.

Apple has for many years been one of Cork's largest employers, with a workforce consistently over 1,000. But in January, the firm said it was moving production of the iMac to Wales, and would sack 450 workers.