Intel Corp, the world’s leading computer chip manufacturer, has recorded a sharp increase in profits and revenu in the first quarter of the fiinancial year. Despite facing multiple challenges including a product recall and the effects of the Japanese earthquake, the company managed to post strong quarter results across all segments.
Intel greatly exceeded gloomy expectations from Wall Street analysts for personal computer sales and recorded a rise of 29% in net profits to $3.2 billion. Earning per share for this period is 59 cents, far above the 46 cent mark predicted by financial analysts (opens in new tab).
Although the personal computer market has taken a dip, the strong demand for chips in high end servers powering data centers and network has helped Intel to flex its muscles. Moreover, the demands for cloud computing services are also fuelling the growth of revenue for Intel.
According to Intel CEO Paul Otellini the strong results in first quarter put Intel in a position to achieve over 20% annual growth this year. Intel is now forecasting a revenue figure between $12.3 and $13.3 billion for the current quarter, well above the $11.87 billion forecasted by analysts.