earnings in the third quarter because of production delays with a new microchip and higher costs, sending its shares down as much as 24 percent.

The supplier of chips and software used to create three-dimensional computer images said it expects to report net income of $1.7 million to $1.9 million, or nine cents to 11 cents a share, in the quarter ended on Tuesday.

The company was expected to earn 38 cents a share, according to three analysts surveyed by IBES International Inc.

3Dlabs said it expects to report third-quarter revenue of $13.6 million, more than double the $5.92 million it reported in last year's third quarter, though less than the $17.34 million it reported in this year's second quarter.

The company blamed the lower-than-expected earnings and revenue on "a number of temporary factors,'' including delayed production of components for its Permedia 2 chips and higher parts costs.