Intel's CEO Craig Barrett dubbed 2001 "a terrible year for our industry," as the company Tuesday reported fourth quarter revenue was down 20 per cent from the year-ago quarter, but still surpassed analyst's earnings expectations. Excluding acquisition-related costs, Intel reported net income of $998 million (around £712 million) and earnings per share of $0.15, down 62 per cent and 61 per cent respectively, from a year earlier, the company said in a statement. Intel's revenue for the fourth quarter, which ended December 29, was $7 billion (around £5 billion) down 20 per cent year-over-year. On the bright side, Intel passed analyst expectations - a consensus of analysts polled by Thomson Financial/First Call expected the company to report earnings of $0.11 per share. Including acquisition-related costs of $550 million (£393 million), however, fourth quarter net income was $504 million (£357 million), down 77 per cent from the year-earlier quarter, Intel said. Including the costs, earnings per share were $0.07 per share, down 78 per cent from a year earlier. Intel plans to launch a version of its 845 chipset with integrated graphics in the first half of 2002, said Paul Otellini, executive vice president and general manager of the Intel Architecture Group, in a conference call with press and analysts following the announcement. Also in the first half, vendors will begin selling Pentium 4-based notebook PCs, he said. Intel demonstrated the first notebooks running mobile Pentium 4 processors at the Consumer Electronics Show (CES) earlier this month. Intel still expects revenue for the first quarter of 2002 to be slightly below or level with the fourth quarter reported Tuesday, the company said.