SAN FRANCISCO (AP) -- Intel Corp. has booked its largest quarterly net income in a decade as the chipmaker benefits from a stronger computer market and more sophisticated factories.
Large corporations bought more computers that use Intel's most expensive chips, an encouraging sign for the economy that emerged from Intel's second-quarter numbers, reported Tuesday after the stock market closed. Corporations have been stingy on upgrading their workers' personal computers, a trend Intel is now seeing reverse. Intel gets most of its profit from the sale of chips that go into PCs.
Intel's results topped Wall Street's forecasts, and the company raised its guidance. Its shares rose more than 7 percent in extended trading.
Intel's net income was $2.89 billion, or 51 cents per share, in the quarter ended June 26. Analysts expected 43 cents per share. The last time Intel's quarterly net income topped $2.5 billion was in 2000 during the dot-com heyday, when Internet fever fueled spectacular computer sales.
In the year-ago period, Intel lost $398 million, or 7 cents per share, when it paid a $1.45 billion fine in Europe over antitrust violations.
Revenue was $10.77 billion in the latest period, above the $10.25 billion expected by analysts surveyed by Thomson Reuters.
Intel's third-quarter forecast was stronger than expected. It said it expects revenue of $11.20 billion to $12 billion. Analysts were projecting $10.92 billion.
Intel's profit forecast also got a lift. Intel now expects gross profit margin -- a key measure of a company's ability to control costs -- of 64 percent to 68 percent of revenue. Its previous forecast was for 62 percent to 66 percent.
Source: Yahoo Finance
http://finance.yahoo.com/news/Intel-posts-biggest-quarterly-apf-3311126180.html?x=0&sec=topStories&pos=2&asset=&ccode=
