First-quarter net income was $2.2 billion, up 25 percent year-over-year and up 1 percent sequentially. Earnings per share were 34 cents, up 31 percent from 26 cents in the first quarter of 2004 and up 3 percent from 33 cents in the fourth quarter of 2004. I

Intel's first quarter included an additional week of business because 2005 is a 53-week fiscal year for the company. Last year's first-quarter results included a legal settlement charge that reduced earnings per share by 1.7 cents.

The company beat Wall Street's estimates of $0.31 per share in the period. On March 1,Intel said it expected revenue for the first quarter to be between $9.2-to-$9.4 billion, as compared to the previous range of $8.8-to-$9.4 billion.

"Led by strong demand for our mobile products, Intel posted double-digit revenue and profit growth versus a year ago," said Intel CEO Craig Barrett, in a statement.

Meanwhile, revenue in the second quarter is expected to be between $8.6-to-$9.2 billion. The R&D spending expectation for 2005 is unchanged at approximately $5.2 billion.

Capital spending for 2005 is now expected to be between $5.4-to-$5.8 billion, higher than the previous expectation of between $4.9-to-$5.3 billion, "driven primarily by stronger than anticipated business and increased confidence in the company's 65-nm process technology ramp," according to Intel.

During the quarter, Intel demonstrated working samples of its first 65-nm microprocessor designs for notebook and desktop platforms. The company remains on schedule to ship 65-nm microprocessors during the year with volume ramping in four 300-mm factories in 2006.

By: DocMemory
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