SAN JOSE, Calif. – Intel said Tuesday that its profit surged to $2.9 billion during its most recent quarter as sales rose to $10.8 billion.
That’s up 34 percent from revenue in the same period a year ago, thanks to a continued rebound in the market for PCs and big computer servers around the world.
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“Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company’s 42-year history,” CEO Paul Otellini in a written statement.
The giant Santa Clara, Calif., chip maker beat analysts’ expectations, with results that suggest a broader tech rebound will continue in the second half of this year.
Intel’s products serve as the brains in a variety of home PCs and industrial-strength computers sold by other companies, and its earnings are widely viewed as a barometer for the industry.
Intel’s profit in the quarter ending in June amounted to earnings of 51 cents a share. Analysts polled by Thomson Reuters had forecast earnings of 43 cents a share, excluding charges, on revenue of $10.25 billion.
The results were a big change from the same period one year ago, when Intel reported its first quarterly loss in over 22 years, largely because of a $1.45 billion fine assessed by European regulators who found the company used illegal rebates and other tactics to hinder its competitors, including Sunnyvale, Calif.-based Advanced Micro Devices.
Since then, however, Intel has been working to put its antitrust troubles behind it, while reporting a big resurgence in sales in recent quarters. Otellini has told analysts he believes Intel can increase its sales and profit on average by at least 10 percent over the next few years, in part by developing new processors for use in a variety of “smart” gadgets and appliances that are not part of the traditional PC market.
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