Intel Q1 Revenues $7.1B, EPS 11 Cents, Gross Margin 45.6 Percent; Projects Q2 Revs Flat With Q1, Gross Margins in Mid-40s

Intel (INTC) this afternoon posted Q1 revenue of $7.1 billion, a bit ahead of both the Street consensus of $6.98 billion and the company’s unofficial guidance of $7 billion. Profits of 11 cents a share were well ahead of the Street consensus of 3 cents.

“We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns,” Intel CEO Paul Otellini said in a statement.

Several factors apparently contributed to the better-than-expected profits:

• Restructuring and asset impairment charges were $74 million, below the expected $160 million.
• Net loss from equity investments, interest and other was $18 million, below the expected $130 million, largely due to “the strengthened market for certain debt instruments” at the end of the quarter.

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