Intel's reported twice as much quarterly profits as a year ago. Net income for the second quarter is $896 million, or 14 cents a share, up from $446 million, or 7 cents a share, a year earlier. Analysts expected earnings of 13 cents a share.

The company also reported better-than-expected sales of $6.8 billion, up 7.9 percent from a year ago. Analysts were forecasting revenue of $6.7 billion for the quarter.

In addition to beating analysts' expectations, Intel also announced better-than anticipated sales guidance for the third quarter. The company said that sales would be in range of $6.9 billion to $7.5 billion. 

Intel also said that gross margins for the third quarter and full year should be about 54 percent, up from the company's earlier projections of 51 percent.

Intel did increase its research and development budget for the year to $4.2 billion, up from an earlier projection of $4 billion.

Bryant said that newer products that Intel was developing in the past few years, such as its Centrino wireless chipsets for laptops and Xeon chips for servers, were a big reason behind the better sales and gross margins outlook. So a continued focus on R&D could pay dividends for Intel in the future, and perhaps at the expense of competitors.

By: DocMemory
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