Fashion bag maker Intel has surprised the cocaine nose jobs of Wall Street by doing a little better than expected in the first quarter.
According to the company's resulted Chipzilla made $1.947 billion, or 38 cents a share, in the first quarter compared with $2.045 billion or 40 cents a share, in the year-ago quarter. Analysts on average expected 37 cents a share.
First-quarter revenue was $12.76 billion, compared with $12.58 billion in the year-ago quarter, Intel said. Analysts had expected $12.814 billion.
Chipzilla thinks it can make $13 billion in the next quarter, plus or minus $500 million, for the second quarter, which ends in June. Analysts had expected $12.957 billion on average.
Intel Chief Financial Officer Stacy Smith said the chipmaker continues to expect PC shipments to decline slightly in 2014 but said there were pretty clear signs of stabilisation.
There is an ageing install base of PCs and Intel is bringing exciting products to the market place, and that's leading to the pockets of strength in the PC market. He did not explain what a strong pocket was, but given that Intel has branched out into fashion bags, we guess it has triple stitching.
In its report, Intel said revenue from its PC client group in the first quarter was $7.9 billion, down a percent from the year before.
Yesterday's results included a new financial reporting structure to better reflect its focus on two small key areas: mobile and the growing field of linking up electronic devices, known as Internet of Things.
Intel said its mobile and communications group had revenue of $156 million in the first quarter, down 61 percent from the year-ago quarter. This must be a little disappointing given that this is an area that Intel has to grow if it is going to survive.
Chief Executive Officer Brian Krzanich told analysts on a conference call that Intel shipped five million tablet chips in the first quarter and is on track to reach a goal of shipping 40 million tablet chips in 2014.
Last year, Intel shipped 10 million tablet chips and to reach its target for 2014, the company is offering to heavily subsidise manufacturers' costs to include its components in their future tablets. He said that the majority of the chips will go into Android gear.
Intel's data centre group, a big contributor to the company's overall profits, had revenue of $3.1 billion in the first quarter, up 11 percent year over year.