Top chip maker Intel Corp. forecast revenue above expectations, as demand for personal computers remained resilient in the face of consumers' growing preference for tablets and other mobile gadgets.
The long-time technology bellwether said revenue in the current quarter would be $13.6-billion (U.S.), plus or minus $500-million. Analysts on average had expected $13.45-billion, according to Thomson Reuters I/B/E/S.
Shaky economies in Europe and the United States, a growing consumer preference for tablets, and a recent shortage of hard drives due to flooding in Thailand have taken a toll on the PC industry.
But demand in China and other emerging economies has helped sustain PC growth, and Intel's server business has been a winner from the buildout of servers behind the Internet and data consumed on smartphones.
The world's leading chip maker said revenue in the first quarter was $12.9-billion, up from $12.85-billion in the year-ago period and a bit higher than the $12.85-billion expected.
GAAP net income in the first quarter was $2.74-billion, down from $3.16-billion in the year-ago period.
GAAP earnings per share were 53 cents, better than the 50 cents expected.
Intel said non-GAAP gross margins in the second quarter would be between 63 per cent, plus or minus 2 percentage points. One analyst who was not authorized to speak to the press said that margin guidance was a little light.
Despite the relatively upbeat outlook, shares of Intel fell 2.81 per cent in extended trade after closing up 0.23 per cent at $28. 47 on Nasdaq.