Intel Corp., the world's largest maker of chips for PCs, is remaining steadfast amid a drastic slowdown in computer sales.
Intel on Tuesday said it's keeping its sales and margin forecasts for this year, even as first-quarter PC sales plunged 14 percent from a year ago, as measured by research firm IDC. The company is helped by rising shipments of chips for servers.
The Santa Clara, Calif., chipmaker also met analyst forecasts for the just-ended quarter. It earned $2 billion, or 40 cents per share, in the January to March period. That was down 27 percent from $2.74 billion, or 53 cents per share, a year ago.
Revenue was $12.6 billion, slightly below the midpoint of Intel's own forecast range. The figure was down 2.3 percent from $12.9 billion a year ago.
Intel shares were flat in extended trading, after the release of the report, after rising 55 cents, or 2.6 percent, to $21.93 in regular trading.
Intel said it shipped 7 percent fewer PC chips compared to a year ago, but 6 percent more server chips.
Intel said it still expects to increase its sales by a few percent this year, and to keep its gross margin at 60 percent, down slightly from its recent three-year average of 63 percent. Analysts polled by FactSet expect revenue to be flat, on average.
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