Original Batmobile from TV series sells for $4.2M


LOS ANGELES (AP) — The original Batmobile from the 1960s television series has sold at auction for $4.2 million.


A spokeswoman for the Barrett-Jackson Auction Co. in Scottsdale, Ariz., says the winning bidder has not been disclosed following Saturday's auction.


The 19-foot-long black, bubble-topped car was used in the "Batman" TV show that starred Adam West as the Caped Crusader.


The car's owner — famed auto customizer George Barris, of Los Angeles — transformed a one-of-a-kind 1955 Lincoln Futura concept car into the sleek crime-fighting machine. On the show, it boasted lasers and a "Batphone" and could lay down smoke screens and oil slicks.


Barris' publicist says his client is pleased with the auction result.


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Media savvy public makes spinning the message harder








We have become a nation of theater critics, judging everything before us not solely in terms of what is said or done but the quality of the performance.


This is the legacy of the public relations business, which lost one of its leaders last week with the death of Chicago's Dan Edelman at age 92.


Over the course of Edelman's career in strategic communication — which began as part of a World War II Army unit that combated the Nazis' psychological warfare and ended atop the world's largest independent PR agency — the work of shaping an image, conveying a message, and effectively interacting with the media and general public moved out from the wings to center stage.






Spin and branding have gone from jargon to common usage, terms your mother might not only use but use correctly. An increasingly media savvy and wary public is looking beyond the news to the forces, counsel and ultimate goals that shaped it. And there's nothing wrong with that until it obscures what, if anything, is truly important about the story being told.


Look at the headlines of recent days, and think of just how much discussion has been focused on the PR machinery at work.


Some of the stories are trivial yet elevated to the level of something we're supposed to care about, such as cyclist and lab rat Lance Armstrong seeking to undo years of lying and cheating in a sit-down with Oprah Winfrey, or Notre Dame linebacker Manti Te'o's star-crossed romance being exposed as fiction. Other stories have more weight.


Nearly all of them, however, have been scrutinized, at least in part, on the stagecraft and strategic communications involved.


There is nearly always a discussion of the effectiveness of the strategy behind the message being advanced and how it was conveyed — what's being sold, how it's being sold, whether we're buying it and why. Then there's the analysis of how it's covered, whether the media got it right, asked too many or too few questions, missed what should have been the point — either through negligence or bias or both.


"The way it's evolved over the years is the public has become very cynical of news media," said Vince Wladika, an East Coast-based consultant who's among the most hard-core PR spinners I know. "That also makes (the PR person's) job hard because you get a good story and it's a true story and the public, a lot of times, dismisses it as too good to be true. So it's certainly not easy.


"We've definitely become a much more cynical society than when Edelman started his business. You can also make the case that the reporting or the reporters have become more cynical. But you can also say they're smarter and do their research more. … The consumer is smarter, too, and the flip side of that is you've got to be buttoned-up more when you present stuff."


Even the Chicago Bears' hire of a head football coach was analyzed on the basis of the figure cut by Canadian Football League import Marc Trestman and how he conducted himself in his introductory news conference — both in the mainstream media and in the social media Greek chorus of Twitter. At least to the extent that it wasn't completely overshadowed by the Te'o story.


"The people I follow on Twitter, the Bears hire normally would be big news," said Peter Marino, vice president of communications at MillerCoors. "Then they have this press conference, and I've seen very little about what Marc Trestman is going to bring the Bears because this Te'o story is the dominant story. It's taking up all the air."


The Te'o story looms large in part because it is a rat's nest of all the things people look for when sizing up strategic communications at work: There's media mythmaking, crisis management, the dangers and benefits of the speed with which news and views travel in the wired world.


Deadspin.com broke the news Wednesday that Te'o's dead girlfriend was a hoax. The story racked up hundreds of thousands of views in minutes, and Notre Dame held a hastily arranged news conference at which the football star was deemed a victim. The media, which had accepted the girlfriend tale as fact, was immediately chastised for failing to adequately vet Te'o's too-perfect story of tragedy dovetailing into inspiration.


There was talk of deadline pressures that hampered fact-checking efforts. Some still suspected Te'o as complicit in a ploy to gain sympathy support among Heisman Trophy voters. And though parts of what happened remain fuzzy, a PR debate raged about whether Te'o needed to do an interview to get in front of the story.


Myths and mistakes have always found their way into the news ecosystem. What's changed is their life cycle, like the news cycle, has sped up considerably the increased scrutiny, awareness and exposure.


"You used to only have so many outlets to deal with, but now you have thousands more," said Wladika, who's worked in-house and out in advancing the viewpoints of NBC Sports, Major League Baseball, Fox Sports, Comcast, Sirius XM and others. "For the general public, you can argue that's fantastic. But from a crisis communications or strategic communications standpoint, it makes it infinitely harder because you have so many more folks you have to deal with and your news cycle is reduced."


Edelman's son and successor, Richard, eulogized his father at a memorial service Friday at Chicago Sinai Congregation by recalling the personal relationships at play in his father's public relations efforts.


The public has a different relationship with the media and the messages than they did when the elder Edelman was starting out. Nothing is accepted at face value. The danger is that when the theatrics draw too much attention, everyone loses sight of the story.


"It's a lot more complicated," Wladika said. "That's for sure."


philrosenthal@tribune.com


Twitter @phil_rosenthal






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Notre Dame's Te'o: 'There is no way that I could be part of this'









Manti Te'o broke his silence late Friday and denied any involvement in the dead girlfriend hoax that has consumed the former Notre Dame All-American for days, while saying the man behind the ruse called two days ago to apologize for it.

"I wasn't faking it," Te'o told ESPN's Jeremy Schaap in an off-camera interview. "I wasn't part of this."

A 22-year-old named Ronaiah Tuiasosopo allegedly preyed upon Te'o in creating a bogus woman named Lennay Kekua who began an online- and telephone-only relationship with Te'o, Notre Dame's bellwether linebacker, only to die in September of leukemia and create a personal back story that propelled Te'o to national renown but ultimately crumbled this week.


Schaap reported after a two and a half hour interview with Te'o that the player wasn't completely sure Kekua did not exist until two days ago -- when Tuiasosopo called Te'o to admit he was behind the hoax and apologize for it.


As for at least one glaring inconsistency -- the story of how Te'o and Kekua met -- the former Irish star admitted to a lie. The relationship, such as it was, began during Te'o's sophomore year at Notre Dame via Facebook, he told ESPN. He attempted to contact Kekua via Skype and Facetime but never saw a face on the other end, Te'o said.





And as for the story of meeting Kekua on the field at Stanford in 2009, a tale retold by his father in October, Te'o said: "I kind of tailored my stories to have people think that, yeah, he met her before she passed away."


ESPN reported Friday that Tuiasosopo called a friend from church in early December and admitted he duped Te'o, without the Notre Dame linebacker playing a part in the deception. Deadspin.com, which broke the girlfriend hoax story Wednesday, reported that Te'o might have played a role in the fraud.

Te'o denied that he used the situation to enhance his Heisman Trophy candidacy. He finished second in the voting to Texas A&M's Johnny Manziel.

"When (people) hear the facts, they'll know," Te'o told ESPN. "They'll know that there is no way that I could be part of this."

Te'o did say the ordeal weighed on him during Notre Dame's 42-14 loss to Alabama in the BCS title game, in which he played arguably one of the worst games of his career.


"It affected me," Te'o said. "When you're stuck in big game like that... people depend on you. You need to perform."

bchamilton@tribune.com

Twitter @ChiTribHamilton





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Armstrong turns emotional in 2nd part of interview


CHICAGO (AP) — Lance Armstrong finally cracked.


Not while expressing deep remorse or regrets, though there was plenty of that in Friday night's second part of Armstrong's interview with Oprah Winfrey.


It wasn't over the $75 million in sponsorship deals that evaporated over the course of two days, or having to walk away from the Livestrong cancer charity he founded and called his "sixth child." It wasn't even about his lifetime ban from competition, though he said that was more than he deserved.


It was another bit of collateral damage that Armstrong said he wasn't prepared to deal with.


"I saw my son defending me and saying, 'That's not true. What you're saying about my dad is not true,'" Armstrong recalled.


"That's when I knew I had to tell him."


Armstrong was near tears at that point, referring to 13-year-old Luke, the oldest of his five children. He blinked, looked away from Winfrey, and with his lip trembling, struggled to compose himself.


It came just past the midpoint of the hourlong program on Winfrey's OWN network. In the first part, broadcast Thursday, the disgraced cycling champion admitted using performance-enhancing drugs when he won seven straight Tour de France titles.


Critics said he hadn't been contrite enough in the first half of the interview, which was taped Monday in Austin, but Armstrong seemed to lose his composure when Winfrey zeroed in on the emotional drama involving his personal life.


"What did you say?" Winfrey asked.


"I said, 'Listen, there's been a lot of questions about your dad. My career. Whether I doped or did not dope. I've always denied that and I've always been ruthless and defiant about that. You guys have seen that. That's probably why you trusted me on it.' Which makes it even sicker," Armstrong said.


"And uh, I told Luke, I said," and here Armstrong paused for a long time to collect himself, "I said, 'Don't defend me anymore. Don't.'


"He said OK. He just said, 'Look, I love you. You're my dad. This won't change that."


Winfrey also drew Armstrong out on his ex-wife, Kristin, whom he claimed knew just enough about both the doping and lying to ask him to stop. He credited her with making him promise that his comeback in 2009 would be drug-free.


"She said to me, 'You can do it under one condition: That you never cross that line again,'" Armstrong recalled.


"The line of drugs?" Winfrey asked.


"Yes. And I said, 'You've got a deal,'" he replied. "And I never would have betrayed that with her."


A U.S. Anti-Doping Agency report that exposed Armstrong as the leader of an elaborate doping scheme on his U.S. Postal Service cycling team included witness statements from at least three former teammates who said Kristin Armstrong participated in or at least knew about doping on the teams and knew team code names for EPO kept in her refrigerator. Postal rider Jonathan Vaughters testified that she handed riders cortisone pills wrapped in foil.


Armstrong said in the first part of the interview that he had stayed clean in the comeback, a claim that runs counter to the USADA report.


And that wasn't the only portion of the interview likely to rile anti-doping officials.


Winfrey asked Armstrong about a "60 Minutes Sports" interview in which USADA chief executive Travis Tygart said a representative of the cyclist had offered a donation that the agency turned down.


"Were you trying to pay off USADA?" she asked.


"No, that's not true," he replied, repeating, "That is not true."


Winfrey asks the question three more times, in different forms.


"That is not true," he insisted.


USADA spokeswoman Annie Skinner replied in a statement: "We stand by the facts both in the reasoned decision and in the '60 Minutes' interview."


Armstrong has talked with USADA officials, and a meeting with Tygart near the Denver airport reportedly ended in an argument over the possibility of modifying the lifetime ban. A person familiar with those conversations said Armstrong could provide information that might get his ban reduced to eight years. By then, he would be 49. The person spoke on condition of anonymity because he was discussing a confidential matter.


After retiring from cycling in 2011, Armstrong returned to triathlons, where he began his professional career as a teenager, and he has told people he's desperate to get back.


Winfrey asked if that was why he agreed to the interview.


"If you're asking me, do I want to compete again ... the answer is hell, yes," Armstrong said. "I'm a competitor. It's what I've done my whole life. I love to train. I love to race. I love to toe the line — and I don't expect it to happen."


Yet just three questions later, a flash of the old Armstrong emerged.


"Frankly," he said, "this may not be the most popular answer, but I think I deserve it. Maybe not right now ... (but) if I could go back to that time and say, 'OK, you're trading my story for a six-month suspension?' Because that's what people got."


"What other people got?" Winfrey asked.


"What everybody got," he replied.


Eleven former Armstrong teammates, including several who previously tested positive for PEDs, testified about the USPS team's doping scheme in exchange for more lenient punishments. Armstrong said in the first part of the interview that he knew his "fate was sealed" when his most trusted lieutenant, George Hincapie, who was alongside him for all seven Tour wins between 1999-2005, was forced to give Armstrong up to anti-doping authorities,


"So I got a death penalty and they got ... six months," Armstrong resumed. "I'm not saying that that's unfair, necessarily, but I'm saying it's different."


Armstrong said the most "humbling" moment in the aftermath of the USADA report was leaving Livestrong lest his association damage the foundation's ability to raise money and continue its advocacy programs on behalf of cancer victims.


Originally called the Lance Armstrong Foundation, the cyclist created it the year after he was diagnosed with a form of testicular cancer that had spread to his brain and lungs. Doctors gave him 50-50 odds of surviving.


"I wouldn't at all say forced out, told to leave," he said of Livestrong. "I was aware of the pressure. But it hurt like hell. ...


"That was the lowest," Armstrong said. "The lowest."


Armstrong's personal fortune had sustained a big hit days earlier. One by one, his sponsors called to end their associations with him: Nike; Trek Bicycles; Giro, which manufactures cycling helmets and other accessories; Anheuser-Busch.


"That was a $75 million day," Armstrong said.


"That just went out of your life," Winfrey said.


"Gone."


"Gone?" Winfrey repeated.


"Gone," he replied, "and probably never coming back."


So was there a moral to his story?


"I can look at what I did," he said. "Cheating to win bike races, lying about it, bullying people. Of course, you're not supposed to do those things. That's what we teach our children."


Armstrong paused to compose himself before a final mea culpa.


"I just think it was about the ride and losing myself, getting caught up in that, and doing all those things along the way that enabled that," he said. "The ultimate crime is, uh, is the betrayal of those people that supported me and believed in me.


"They got lied to."


___


AP Sports Writer Jim Vertuno in Austin, Texas, and National Writer Eddie Pells in Denver contributed to this report.


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J.J. Abrams to produce Lance Armstrong biopic






LOS ANGELES (AP) — He’s already gotten the Oprah treatment. Now Lance Armstrong is headed for the silver screen.


Paramount Pictures and J.J. Abramsproduction company, Bad Robot, are planning a biopic about the disgraced cyclist, a studio spokeswoman said Friday.






They’ve secured the rights to New York Times reporter Juliet Macur‘s upcoming book “Cycle of Lies: The Fall of Lance Armstrong,” due out in June. Macur covered the seven-time Tour de France winner for over a decade.


No director, writer, star or start date have been set.


Armstrong is in the midst of a two-part interview with Oprah Winfrey in which he admits to using performance-enhancing drugs to reach his historic victories, something he’d defiantly denied for years. The International Olympic Committee stripped him of his 2000 bronze medal this week.


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Lilly drug chosen for Alzheimer's prevention study


Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.


The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.


Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.


"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.


She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.


In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.


Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.


About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.


___


Online:


Alzheimer's info: http://www.alzheimers.gov


Alzheimer's Association: http://www.alz.org


___


Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP


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J.J. Abrams to produce Lance Armstrong biopic


LOS ANGELES (AP) — He's already gotten the Oprah treatment. Now Lance Armstrong is headed for the silver screen.


Paramount Pictures and J.J. Abrams' production company, Bad Robot, are planning a biopic about the disgraced cyclist, a studio spokeswoman said Friday.


They've secured the rights to New York Times reporter Juliet Macur's upcoming book "Cycle of Lies: The Fall of Lance Armstrong," due out in June. Macur covered the seven-time Tour de France winner for over a decade.


No director, writer, star or start date have been set.


Armstrong is in the midst of a two-part interview with Oprah Winfrey in which he admits to using performance-enhancing drugs to reach his historic victories, something he'd defiantly denied for years. The International Olympic Committee stripped him of his 2000 bronze medal this week.


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Chicago seeks investors for potential Midway Airport deal









Mayor Rahm Emanuel's administration on Friday began testing the investment market's appetite for a potential deal to privatize Midway Airport, launching the process for finding prospective bidders.

The city posted a "request for qualifications," seeking expressions of interest and documentation of credentials from teams interested in financing, operating, maintaining and improving the Southwest Side airport, which is the nation's 26th busiest, with about 9 million passengers passing through annually.

The document reiterates a framework, laid out by Emanuel earlier, aimed at providing city taxpayers with a better deal than the widely criticized 75-year agreement to privatize parking meter operations, carried out during former Mayor Richard Daley's administration. Proceeds from the earlier deal were used to plug operating deficits, and meter rates rose sharply.





This time, proposed leases must be less than 40 years, which locks in the city for a shorter period.

Rather than awarding the city only an upfront payment, the private operator also must share revenue with the city on an ongoing basis. Initial proceeds would be used to pay down debt issued since 1996 to rebuild the airport, the mayor's office said. There is about $1.4 billion in outstanding debt.

Longer term, cash flow would be directed to city infrastructure needs. The mayor has pledged proceeds would not be used to pay for city operations.

The city also is seeking assurances that prices for parking, food and beverages will be kept reasonable.

This is the second time Chicago has looked at privatizing Midway. A 99-year lease that would have brought in $2.5 billion died in 2009 when the financial markets froze up.

Prospective bidders will be asked to prove their ability to raise the needed financing, said Tom Alexander, a spokesman for the mayor.

As in the first go-round, the city is using Credit Suisse Securities LLC as its lead financial adviser.

"The city's process and approach will be thorough and open," Lois Scott, the city's chief financial officer, said in a written statement.

Southwest Airlines, the airport's dominant carrier, supports the move.

Some observers have said a structure with a shorter lease and greater control for the city could translate into lower bids.

But Alexander said the city was confident investors "would gladly meet our terms and still make very attractive offers." The city has declined to estimate how much such a deal could garner.

The request for proposal states "there is significant potential to increase commercial revenue both in terms of variety of activities and increases in sales per passenger."

The city posted the request for qualifications shortly after the Federal Aviation Administration accepted its preliminary application to privatize the airport, clearing the way for the city to move forward in its evaluation process.

Prospective bidders were asked to formally express their interest by Feb. 22. If the city moves forward and seeks proposals, a privatization plan could be submitted to the City Council this summer.

kbergen@tribune.com

Twitter @kathy_bergen





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Quinn to name former prosecutor Fitzgerald to UI board









Gov. Pat Quinn will name former U.S. Attorney Patrick Fitzgerald to the University of Illinois Board of Trustees, the Tribune has learned.


Fitzgerald will replace first term trustee Lawrence Oliver II, according to a source who was informed of the decision.


The appointment would mark a quick return to the public eye for Fitzgerald, a career prosecutor who left the U.S. attorney's office in Chicago for private law practice in 2012 after a long run that included putting former Govs. George Ryan and Rod Blagojevich behind bars.





Oliver told the Tribune he received a call from Quinn's office Wednesday afternoon with the news that he would not be reappointed. Oliver, who was appointed as a political independent and maintains that affiliation, said he suspects he was not reappointed because he voted in a 2010 Democratic primary.


By law, U. of I. can have no more than five members from any political party, and there are already five Democrats on the board.


Both of the other two board members whose terms expire Monday say they were told they were reappointed to another six-year term. James Montgomery, a Democrat and a Chicago attorney, refused the governor's call to resign during the university scandal over politically connected admissions to the school. Dr. Timothy Koritz, an anesthesiologist at Rockford Memorial Hospital, was appointed by Quinn when he revamped the board in 2009. Koritz, a Republican, was told Wednesday that he would serve a second term.


Quinn’s office is expected to announce the appointments prior to U. of I.'s board meeting next week.


Oliver, chief counsel for investigations at the Boeing Co. who served on Quinn's Illinois Reform Commission, said he was disappointed by the governor's decision. He said he voted in the 2010 Democratic primary to support David Hoffman for U.S. Senate.


U. of I.'s  nine-member board has to be politically balanced, according to state statute. The current board has five Democrats, three Republicans and one Independent.


The U. of I. board is scheduled to meet next Thursday, at which time it will take its annual vote on a chairman and other officers of the board.






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Intel's weak outlook, spending hikes unnerve Wall Street


SAN FRANCISCO (Reuters) - Intel Corp forecast quarterly revenue that disappointed Wall Street and a sharp increase in capital spending it plans for 2013 unnerved investors already concerned about slow demand for personal computers.


Shares of the world's leading chipmaker slid more than 5 percent in after-hours trade on Thursday after it projected this year's capital spending at $13 billion, plus or minus $500 million, exceeding many analysts' estimates for about $10 billion.


Intel said $2 billion of its increased expenditures would go toward expanding a facility for researching future manufacturing technology. Some analysts worried that with PC sales already slow, expanding too quickly may create excess capacity that could hurt the bottom line.


"People are starting to freak out about the capex," said Sanford C. Bernstein analyst Stacy Rasgon. "The concern is that if I spend a lot of money and I build up my factories, I don't have enough demand to fill them. They have very high fixed costs, and it pulls your margins down."


Outgoing Chief Executive Paul Otellini, who plans to retire in May after a successor is identified, said the investment in manufacturing would lower costs in the long run.


"The leading edge capacity is the lowest cost for us on a per unit basis," Otellini told analysts on a conference call. "Regardless of what you think the size of the market is, the leading edge fabs are the single greatest asset that we have."


Otellini said the higher capex is not intended to bankroll a foundry or contract chipmaking business, but he did not rule out manufacturing semiconductors for other chip companies as long as that did not empower a rival.


Intel has agreed to manufacture custom chips on behalf of networking equipment company Cisco Systems Inc, Bloomberg reported on Thursday. An Intel spokesman declined to comment.


In the fourth quarter, Intel's revenue was $13.5 billion, compared with $13.9 billion a year earlier. Analysts had expected $13.53 billion.


It estimated first-quarter revenue of $12.7 billion, plus or minus $500 million. Analysts expected $12.91 billion.


STRUGGLING IN MOBILE


Intel is used to being king of the personal computer market, particularly through its historic Wintel alliance with Microsoft Corp, which has led to breathtakingly high profit margins and an 80 percent market share.


But it has struggled to adapt its technology for smartphones and tablets, a market dominated by Qualcomm Inc, Samsung Electronics Co Ltd and Nvidia Corp. PC makers are struggling to stop a decline in sales as consumers hold off on buying new laptops in favor of more nimble mobile gadgets.


Microsoft's long-awaited launch of Windows 8 in October brought touchscreen features to laptops but failed to spark a resurgence in sales that Intel and many PC manufacturers had hoped for.


Intel's hefty investment plans reflect its confidence in the future, even as Wall Street worries about the chipmaker's struggle to gain traction in the mobile market.


"Our core advantage really is our manufacturing leadership," Chief Financial Officer Stacy Smith told Reuters. "450 will give us a significant cost advantage relative to others."


Intel is expanding its research fab in Hillsboro, Oregon, to develop technology for manufacturing chips on 450 mm silicon wafers, a complicated step up from the current 300 mm wafer standard.


Larger wafers can translate into big savings because more chips can be etched onto each of them. But building 450 mm plants is expected to be so expensive that only a few industry leaders, including Intel, Samsung Electronics and TSMC, are expected to have the necessary scale.


Some Wall Street analysts gave Intel high marks for expected operating efficiency this year.


"The revenue isn't going to be there, but the margin and expense control is going to stabilize the bottom line," said Cody Acree, an analyst at Williams Financial. "I think it's probably a success if you can be flat in an industry that most people expect to be flat to down."


Intel foresees first-quarter gross margins of 58 percent, plus or minus two percentage points. Analysts on average expected gross margins of about 56 percent for the current quarter, according to Thomson Reuters I/B/E/S.


It estimated a 2013 gross margin of 60 percent, plus or minus a few percentage points. Analysts on average had expected 59 percent.


Net earnings in the December quarter were $2.5 billion, or 48 cents a share, compared with $3.4 billion, or 64 cents a share, year-ago period.


Analysts had expected 45 cents, and said the surprisingly strong performance was partly due to a lower effective tax rate of 23 percent. This was below Intel's forecast of about 27 percent.


Still, shares of Intel fell 5.6 percent in after-hours trade to $21.43, after closing up 2.58 percent at $22.68 on the Nasdaq.


"This is a company that is continuing to spend money to participate in the market. That may concern some investors," said Doug Freedman, an analyst at RBC Capital.


(Reporting by Noel Randewich; Editing by Richard Chang and Steve Orlofsky)



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