Intel posts $3bn quarterly net profit

US computer chip giant Intel posted a quarterly net profit of nearly three billion dollars on Tuesday and record revenue of more than 11 billion dollars.

The Santa Clara, California-based technology bellwether said third-quarter net profit rose 59 percent to 2.95 billion dollars compared with the same period a year ago.

Earnings per share of 52 cents were slightly better than the 50 cents expected by Wall Street analysts.

Revenue rose 18 percent during the quarter ending September 25 to $11.1 billion, roughly what the company forecast in August when it slashed its third quarter revenue outlook due to lower demand for computers.

Intel, the world's biggest manufacturer of computer chips, said it expected revenue of $11 billion to $11.8 billion during the current quarter.

Intel shares were up 0.91 per cent at $19.95 in after-hours electronic trading.

"Intel's third-quarter results set all-time records for revenue and operating income," Intel president and chief executive Paul Otellini said.

"These results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets," Otellini said in a statement.

"Looking forward, we continue to see healthy worldwide demand for computing products of all types and are particularly excited about our next-generation processor, codenamed Sandy Bridge, and the many new designs around our Intel Atom processors," he said.

In a conference call with financial analysts, Otellini said Sandy Bridge represented the "largest increase in computing performance in our history."

"Early demand is much higher than anticipated," he said.

Otellini also said he did not expect tablet computers such as Apple's iPad and upcoming devices running Google's Android platform to significantly impact personal computer sales.

"Sure, at the margins they probably will, we saw the same things with netbooks," he said.

"But three years later, both the PC and netbook markets have grown," the Intel chief said.
"In the end, the tablet category will be additive to our bottom line and not take away from it

"We think that tablets are exciting and we fully welcome their arrival," he said.
 

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