Intel stems sales decline
Chip sales down, but profits up
Intel announced a profit of $1.61bn in the first quarter, or 27 cents per share. The number is up 19 per cent from the same quarter last year.
The Santa Clara-based business also posted a slight curb in the steady loss of sales it has faced since 2005 to rivals such as AMD. Revenue fell less than 1 per cent from Q1 last year, from $8.94bn down to $8.85bn. In last year's fourth quarter, company sales plummeted five per cent.
Intel's latest results hit the mark of most analyst forecasts. Intel attributes the better profits to a lower-cost chip-making process, company restructuring and staff lay-offs and a large tax benefit.
The chipmaker said a tax item resulted in a $275m reversal of previously accrued taxes that increased earnings per share by about five cents.
The company's forecast for next quarter, however, falls short of analyst expectations. Intel predicts sales of $8.2bn to $8.8bn — whereas the average analyst lies at a sunnier $8.86bn, according to Bloomberg.
Chip rival AMD warned early last week it expects to report revenue of approximately $1.225bn, short of analyst predictions of about $1.55bn. It will announce its earnings April 19.
Intel shares gained 29 cents, closing at $20.98 at the end of Tuesday's trading. ®