SAN FRANCISCO (Reuters)-Intel Corp on Tuesday posted a lower quarterly net profit and reported revenue that was slightly ahead of expectations in the face of a weakening U.S. economy, and its shares rose 5.5 percent.
The world's largest maker of semiconductors said first-quarter net income fell to $1.44 billion, or 25 cents per share, from $1.64 billion, or 28 cents a share, a year ago. Revenue rose to $9.67 billion from $8.85 billion.
Intel, one of the big bellwethers for technology, said it expected second-quarter revenue in a range of $9.0 billion to $9.6 billion and a gross margin of 56 percent, plus or minus a couple of points.
Analysts' current expectations for the current quarter are for a profit of 28 cents a share, on average, on revenue of $9.26 billion, according to Reuters Estimates.
Early last month, Intel cut its first-quarter gross-margin forecast, citing weaker pricing on certain memory chips. Prices in the NAND flash memory-chip market have been under pressure for more than a year now.
Shares of Intel have declined 21 percent this year, compared with a 14 percent decline in the Nasdaq. After the earnings report, Intel stock rose to $22.06. In regular trade, the stock had gained 22 cents, or 1.1 percent, to $20.91.
(Reporting by Duncan Martell; Editing by Braden Reddall)
??Â« Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.