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Intel sees 'signs of improvement' in PCs, but first-quarter sales and outlook remain flat [The Oregonian, Portland, Ore. :: ](Oregonian (Portland, OR) Via Acquire Media NewsEdge) April 15--Intel says it's climbing back, but its financial results remain flat. The world's largest chipmaker met market expectations Tuesday with first-quarter sales and profits that matched the company's forecasts and Wall Street's expectations. Intel declared that it's making solid progress as it transitions from reliance on the PC market to seek a greater share of the mobile ecosystem, but dividends from those results won't come anytime soon. Financial highlights include: --Revenue of $12.8 billion, up 1.5 percent from the first quarter of 2013. --Net income of $1.9 billion, or 38 cents a share. That compares to profits of $2.0 billion, 40 cents a share, a year ago. --A second-quarter sales forecast of $13.0 billion, up 1.5 percent from the same period last year. --PC revenue totaled $7.9 billion, down 1 percent. --Data center revenue rose 11 percent to $3.1 billion. The company is targeting 15 percent annual growth in its data center business. Intel said its gross profit margin will improve modestly in the current quarter as the company begins production of its delayed 14-nanometer chip technology, but that those profits will be held down by "contra revenue" -- money the company is spending to get tablet manufacturers to choose Intel chips over designs from rival ARM Holdings. Intel said it shipped 5 million tablet processors in the first quarter, "solid progress" toward the 40 million it hopes to ship this year. The company's global workforce declined by about 1,000 in the first quarter, leaving 106,000 employees worldwide. Intel is in the process of trimming its global headcount by about 5 percent this year; cuts already announced include the closure of a facility in Costa Rica and downsizing in the company's information technology department. Though based in California, Intel's largest and most advanced operations are in Washington County. The company has 17,000 employees in Oregon, more than any other business. Intel shares climbed 21 cents Tuesday, closing at $26.77. Shares rose another 53 cents, or 2 percent, in after-hours trading. The stock has traded between $21.42 and $27.12 in the past year. Intel executives will discuss the first-quarter results with Wall Street analysts at 2 p.m. Check back at oregonlive.com/silicon-forest for an update afterwards. -- Mike Rogoway; twitter: @rogoway; 503-294-7699 ___ (c)2014 The Oregonian (Portland, Ore.) Visit The Oregonian (Portland, Ore.) at www.oregonian.com Distributed by MCT Information Services |