Some analysts had been projecting higher earnings for the quarter, in part because they did not take into account the merger costs.

Four days before the vote, Hewlett-Packard announced that it had secured a $4 billion credit facility to pay for merger costs.

Advanced Micro's report surprised analysts, who had predicted better operating results and a lower charge associated with merger costs.

The merger costs had also caused losses for Time Warner in the final two quarters of 1989 and for the year.

Dr. Weinstein added that thousands of workers were dismissed to pay merger costs.

Excluding one-time charges relating to merger costs and tax breaks, the company calculated its operating earnings at $156 million.

Of course, the merger costs hurt us, but our operating earnings in Federated and Allied were up 46 percent in the third quarter.

But Mr. Hanley said that the proposed contract does not appreciably reduce the estimated merger cost of $20 million.

VeriSign said the improved results could be attributed to a big jump in sales and a reduction in merger costs.

Excluding the cost of stock options, merger costs and some other items, Amazon lost $122 million, or 35 cents a share, which was a penny less than expected.