The world's biggest chip maker reported net income of $1.44-billion, or 25 cents per share, in the first quarter compared with profit of $1.64-billion, or 28 cents per share, in the same period last year.<\/p>\n
The California company said restructuring and asset costs trimmed profit by four cents per share.<\/p>\n
Intel executives put a positive spin on the earnings report, saying the firm saw "healthy demand" for its computer chips in all categories.<\/p>\n
"Our first-quarter results demonstrate a strengthening core business and a solid global market environment," said Intel chief executive Paul Otellini.<\/p>\n
"Looking forward, we remain optimistic about our growth opportunities as we continue to reap the benefits of our 45nm technology leadership," Otellini said, referring to a new generation of ultra-small, high-performance chips Intel brought to market late last year.<\/p>\n
"The competitive position of our core business is superb," Otellini said. "We expect our differentiation to grow as we continue to ramp this technology."<\/p>\n
Demand in the business computer market for "multi-core" chips built with two or four of the new microprocessors hit an all-time high, according to Intel.<\/p>\n
Intel has taken market share from rival Advanced Micro Devices, which is to deliver its own 45nm chips to market this year.<\/p>\n
Costs of getting factories cranking out new-generation chips were among the factors that ate into Intel's profit for the quarter, according to company executives.<\/p>\n
A major drag on Intel's profit was a glut in the flash memory market that resulted in prices dropping by about half as the chip maker brought a new factory online to make those products.<\/p>\n
Intel also spent $2.5 billion buying back 122 million shares of its stock and paid out a record high dividend to shareholders.<\/p>\n
Intel predicted its revenues for 2008 will be seven percent higher than last year despite "a challenging flash market and a volatile macro-economic environment."<\/p>\n
The confident outlook outweighed the slip in profit for the quarter. Intel's stock price jumped nearly 8.0% to $22.57 in after-hours trading that followed the release of the earnings report.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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