San Francisco: Intel Corp has said its first-quarter profit rose 18.6% from a year ago to $1.61 billion as the chip giant avoided some of the price cuts that hurt earnings in the past.
The earnings excluding a one-time tax benefit amounted to 22 cents a share, in line with Wall Street estimates.
Revenues meanwhile fell 1% compared with the same quarter in 2006 to $8.9 billion.
“The strong momentum of our industry-leading Intel Core microarchitecture product family, combined with ongoing structural cost improvements, delivered solid financial results in the first quarter,” said Intel president and chief executive Paul Otellini on 17 April.
“Our product strength is reflected in the fact that average selling prices for the quarter held up well in a very competitive environment.”
The world’s biggest computer chipmaker has been in a fierce price war with rival Advanced Micro Devices that has forced Intel to slash its workforce and take other belt-tightening steps.
The company said it reached its goal of reducing the workforce to about 92,000, meeting the target one quarter ahead of schedule. That involved the cutting of some 10,000 positions. Intel also recently announced plans for a big facility in China.
The latest results included the effect of a $300-million reversal of previously accrued taxes that increased earnings per share by five cents.
Intel said its gross profit margin was 50.1%, higher than 49.6% in the previous quarter as lower costs and the sale of inventory offset the effects of start-up costs on new plants and lower revenue.