Intel profit jumps 25%, beats estimates - East Valley Tribune: Business

Intel profit jumps 25%, beats estimates

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Posted: Tuesday, July 15, 2008 9:43 pm | Updated: 9:13 pm, Fri Oct 7, 2011.

SAN FRANCISCO - Intel Corp.’s second-quarter profit jumped 25 percent as blossoming sales of laptop chips helped the company cruise past Wall Street’s estimates Tuesday.

Investors viewed the chip maker’s favorable results as a sign that global PC demand is healthy despite a sputtering U.S. economy that has depressed some domestic spending. Intel CEO Paul Otellini said demand for Intel’s chips remains strong “in all segments and all parts of the globe.” Three-quarters of Intel’s business is outside the U.S.

Intel shares rose 21 cents to $20.92 in after-hours trading. They had risen 24 cents, or 1.2 percent, to $20.71 in the regular session before the company reported its results.

Intel is the East Valley’s largest private-sector employer, with about 10,000 employees in Chandler. Intel said its net income was $1.6 billion, or 28 cents per share, in the three-month period ending June 28. That was 3 cents per share higher than what analysts surveyed by Thomson Financial were expecting. It was a 25 percent jump from the $1.28 billion that Intel earned a year ago.

Intel is profiting from surging global demand for laptops and the processors that power them, though lower prices for some of the fastest-growing models drove down Intel’s closely watched average selling price in the latest quarter. Intel can absorb the trend easier than smaller rival Advanced Micro Devices because Intel has made a faster switch to a new manufacturing process that lowers the cost of making each chip.

Intel is the world’s No. 1 supplier of microprocessors, the electronic brains of personal computers. Intel commands about 80 percent of the market.

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