Revenues for Intel Rise, Investor Concerns about the Technology Industry have been
Intel, the biggest semiconductor maker, reported solid global demand for its chips, soothing investor concerns that economic softness would rattle the technology industry.
The company reported that net income in the first quarter dropped 12 percent to $1.4 billion, or 25 cents a share, from the year-ago quarter. The company said revenue improved 9 percent to $9.7 billion. Operating income, before the costs of restructuring and asset impairment charges, was $2.1 billion or 23 percent above the same quarter last year.
The net income was in line with expectations of Wall Street analysts. They had expected 25 cents a share and revenue of $9.63 billion, according to a survey of analysts by Thomson Financial.
Paul Otellini, Intel’s chief executive, was upbeat about the company’s prospects and the economy. He said in a statement that the results showed “a solid global market environment,” adding that, “We remain optimistic about our growth opportunities.”
Shares of Intel rose about 1 percent to close at $20.91 in regular trading, before the report was issued. Stock rose sharply in after-hours trading, moving as high as $22.19.
