Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Intel Boost Eases Jitters After Compaq Report

SAN FRANCISCO -- Intel Corp., the world's largest maker of computer chips, has reported first-quarter earnings above Wall Street's expectations, easing concerns about the possibility of a major slowdown in PC sales after Compaq's warning last Friday.

"Intel's numbers indicate that the PC market is still hot," said Ashok Kumar, an analyst with U.S. Bancorp Piper Jaffray. "It's not super-hot, but it's healthy."

Santa Clara, California-based Intel said its first-quarter net income rose to $2 billion, or 57 cents a share, from $1.3 billion, or 36 cents, a year earlier.

Earnings, adjusted for a two-for-one stock split, compared with the Wall Street consensus of 55 cents, said First Call, which tracks analysts' estimates.

"When we look at what's going on in the market, we see a PC marketplace that is as competitive as it's been," Andy Bryant, Intel's chief financial officer, said in an interview. "We don't see anything extraordinary in this marketplace."

The company also said it expected its second-quarter revenues to be flat to slightly lower than first-quarter revenues of $7.1 billion, citing seasonal slowness.

First-quarter revenues rose 18 percent to $7.1 billion from $6.0 billion a year ago, though the latest result was 7 percent lower than revenues in the company's strong fourth quarter.

Intel introduced new products in the quarter, such as the Pentium III processor and Pentium III Xeon chips, as well as higher-speed Celeron processors for low-cost computers and mobile Pentium II processors.

Company executives said on a conference call that the Pentium III was becoming the fastest product in Intel's history to go into volume production. They also said that revenues in the quarter declined in the Americas, including the United States, but grew in Japan.