Computer chip giant Intel last night announced a net profit of $936 million (€1,060) for the first quarter, up sharply from a year earlier, but said revenues were nearly flat.
First-quarter revenues of $6.8 billion were down 3 per cent from the previous quarter, but up 2 per cent from the same quarter last year. Analysts expected $6.79 billion dollars in earnings. The company reported 15 US cents per share in net income before acquisitions, in line with analyst expectations.
The company took a one-time charge on first-quarter earnings of about $150 million, representing about half of the $300 million payment, it agreed on Monday with rival Intergraph over alleged patent infringements.
Company chief executive Mr Craig Barrett said continued weak spending on computers and other networking gear continued to suppress earnings.
"While demand in emerging markets remains solid, established markets such as the United States and Europe continue to be impacted by weak IT spending," Mr Barrett said in a statement.
Intel, which employs 3,150 people at its Leixlip operations, gave no indication about the prospects of recommencing work on its $2.2 fabrication plant in Kildare.
Earlier, US stocks surged ahead with the broad market scoring the largest gain in nearly seven months, as positive forecasts from tech companies Texas Instruments and Novellus reassured investors about profits and the economy.
However, in a note to clients yesterday, Mr Dan Niles, an analyst at Lehman Brothers, reiterated his view last week that "we expect another false (Philadelphia Semiconductor Index) rally and would lighten positions on strength going into the summer."
