Intel, the world's No. 1 semiconductor company based on sales, posted a 25 percent surge in profit for the June-quarter on record shipments of mobile microprocessors and chipsets. Net income rose to $1.6 billion, or 28 cents per share, compared with $1.3 billion, or 22 cents per share, in the second quarter of 2008.

Intel's revenue rose to $9.5 billion from $8.7 billion in the second quarter of 2007. Analysts were on the average expecting the company to report 25 cents in earnings per share and revenue of $9.3 billion.

Even better than the strong second quarter results was the outlook Intel provided for the third quarter, which company executives said is looking fairly robust globally. The company forecasts third quarter revenue would be between $10 billion and $10.6 billion versus $10.1 billion for the third quarter of 2007.

"Intel had another strong quarter with revenue at the high end of expectations and earnings up substantially year-over-year," said Paul Otellini, president and CEO of the company in a statement. "As we enter the second half, demand remains strong for our microprocessor and chipset products in all segments and all parts of the globe."

Intel's strong performance is particularly significant because of growing problems in the U.S. economy where financial companies are crumbling under growing debt loads and the weakness in the mortgage market.

On Tuesday, U.S. Federal Reserve Bank chairman Ben Bernanke painted a gloomy outlook for the economy, citing crisis in the energy and housing markets.

In a presentation to a senate committee, Bernanke said "the economy continues to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food and some other commodities."

By: DocMemory
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