Intel profits jump as sales pick up speed
Chip maker Intel Intel has reported first-quarter profits up 89% and revenues up 20% as global spending on information technology picked up.
The biggest chip-maker in the world said its net profits grew by 89% to $1.7bn (€1.42bn) in the first quarter of the year, compared with profits of $915m (€766m) for the same period in 2003.
Earnings per share struck 26 cents, up from 14 cents in the first quarter of 2003, but slightly below analysts' consensus expectation of that had called for 27 cents.
"Intel's first-quarter results showed healthy growth in both revenue and earnings compared to a year ago, led by improvement in worldwide spending," said Craig Barrett, Intel's chief executive.
In the first three months of the year sales rose to $8.09bn (€6.77bn), compared with $6.75bn (€5.65bn) in the first quarter of 2003.
The results include a 1.7 cent-per-share charge from Intel's $225m (€188m) payment to Intergraph Corp. to settle a long-running patent dispute.
Looking forward Craig Barrett, Intel's chief executive said that new chip processors and platform innovations should help stimulate sales going forward. It said its research and development spending for 2004 remains unchanged at $4.8bn (€4.01bn).
