Intel beats Q1 expectations, jacks up revenue forecast

Intel crept in over expectations with its Q1 results today, though its silicon business dipped 2 per cent on the previous year's slightly longer quarter.

The chip giant characterized its Q1 performance as a "solid start" to the year, and was bullish enough to jack up its expectations for the second quarter.

Revenues were $12.91bn in the quarter ending March 31, a shade over last year's $12.857bn. Net income came in at $2.7bn, compared to last year's $3.16bn. The firm pointed out that this year's Q1 was a week shorter than last year.

This landed the firm with earnings per share of $0.53 diluted, or $0.56 non-GAAP. Analysts had been expecting EPS of $0.50 on revenues of $12.84bn.

In a statement, CEO Paul Otellini described the numbers as "a solid start" to what should be another growth year. The firm said it expected second quarter revenues to come in at $13.6bn, give or take half a billion, compared to the $13.43bn Wall St currently expects.

All the firm's silicon business units showed slight dips on the previous year, as Intel continued to suffer from the continuing hit from last year's Thai floods and the knock-on effect on industry inventory - not to mention that missing week.

Nevertheless, in a statement Intel said PC sales had played out of as expected, and it did not expect any further hit from the disk drive shortage in future.

Otellini said the second quarter should benefit from "the first Intel-based smart phones in the market" as well as high volumes of its 22nm tri-gate tech and "the ramp of our best server product ever". ®