By Don Clark
Intel Corp. on Thursday said its net income jumped 39% in the
fourth quarter, as the big chip maker reaped the benefits of
improved personal computer sales and continued demand for server
systems.
The company's revenue increased 6% from a year earlier, while
its gross profit margin of 63.7% was lower than the 65% in the
third quarter.
Shares of Intel fell 2% in recent after-hours trading.
Intel, the biggest supplier of chips that handle calculations in
computers, had suffered as consumer spending shifted from PCs to
smartphones and tablets. But its business began recovering last
spring, as the threat that tablets based on competing technology
would replace PCs at many companies has receded.
In all, Intel reported net income for the quarter ended Dec. 27
of $3.66 billion, or 74 cents per share, compared with a profit in
the year-earlier period of $2.63 billion, or 51 cents a share.
Revenue rose to $14.72 billion from $13.83 billion.
Analysts polled by Thomson Reuters expected per-share earnings
of 66 cents and revenue of $14.71 billion.
For the current first quarter, Intel projected revenue between
$13.2 billion and $14.2 billion and gross margin of 60%, plus or
minus a couple percentage points. Analysts, on average, were
expecting revenue of $13.76 billion and gross margin of 61.2%,
according to Thomson Reuters.
For the year, Intel projected revenue to rise by a percentage in
the mid-single digits and gross margin of 62%, plus or minus a
couple percentage points. Analysts, on average, were expecting
revenue to rise 4% and gross margin of 63.4%, according to Thomson
Reuters.
Tess Stynes contributed to this article.
Write to Don Clark at don.clark@wsj.com
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