Intel posts biggest profit in a decade, raises forecast

Posted 6m ago
Netvibes myAOL
By Jordan Robertson, Associated Press

SAN FRANCISCO — Intel (INTC) posted its largest income in a decade Tuesday as the company benefits from a strengthening computer market and more sophisticated factories.

The results topped Wall Street's forecasts, and Intel raised its guidance, but that may not be enough to quell fears about cracks in the computer industry's recovery amid fresh economic worries.

Intel reported after the market closed Tuesday that net income was $2.89 billion, or 51 cents a share, in the quarter ended June 26. That compares with a loss of $398 million, or 7 cents a share, a year ago, when Intel was forced to pay a $1.45 billion fine in Europe over antitrust violations.

Analysts expected net income of 43 cents a share in the latest period.

The last time Intel's quarterly net income topped $2.5 billion was in 2000 during the dot-com heyday.

Revenue was $10.77 billion in the latest period, above the $10.25 billion expected by analysts surveyed by Thomson Reuters.

Intel's revenue forecast of $11.20 billion to $12 billion for the third quarter is higher than analysts' projections for $10.92 billion.

Intel also raised its profit forecast. The company now expects gross profit margin — a key measure of a company's ability to control costs — of 64% to 68% of revenue. Its previous forecast was for 62% to 66%.

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