Intel announced quarterly sales of $1.57 billion Tuesday, missing Wall Street estimates for the quarter. Earnings were 20% higher than the same quarter a year ago, but were down 4% from the previous quarter. Intel blamed the slowdown on a decline in flash memory shipments and higher component purchasing costs due to a sharp increase in Pentium II production.

Intel shipped more microprocessors this quarter than it ever has, and for the first time more than half of them featured MMX technology. Shipments of motherboards, Ethernet cards, hubs, and switches all increased.