NEW YORK — Intel Corp., the world's largest chip-maker, on Thursday said its profit rose 6 percent in the latest quarter, topping analyst expectations, even as hard-drive shortages held back PC makers' chip orders.
The Santa Clara, Calif., company also provided a forecast for the new quarter that matched analyst expectations.
Intel's results, like Apple's in recent quarters, have benefited from the economic surge in China and other developing countries, where many people are buying PCs for the first time. Intel processors go into about four out of five PCs built.
At the same time, growing Internet use is driving demand for servers, where Intel processors are now the No. 1 choice as well.
However, Intel had to scale back sales expectations in the middle of the quarter because of disastrous floods in Thailand, which knocked out factories that produce hard drives and hard drive components. Computer makers cut production, and chip purchases, because of the parts shortages.
The latest results were at the high end of Intel's mid-quarter forecast range.
Fourth-quarter net income was $3.36 billion, or 64 cents per share, up from $3.18 billion, or 56 cents per share, a year earlier.
Excluding some one-time charges related to acquisitions, earnings totaled 68 cents per share, beating the 61-cent estimate of analysts polled by FactSet
Revenue rose 21 percent to $13.9 billion from $11.5 billion. Analysts were expecting $13.7 billion.
The Santa Clara, Calif., company says it expects between $12.3 billion and $13.3 billion in first-quarter revenue, straddling the analyst forecast of $12.8 billion.
Intel shares added 17 cents to $25.80 in extended trading, after the release of the results. Shares had risen 24 cents to $25.63 on Thursday.Comment on this story
While Intel is stronger than ever on the PC side, it's facing a new threat in the form of cellphone-style chips made by Texas Instruments Inc., Qualcomm Corp., Nvidia Corp. and others. These chips have taken the step from powering cellphones to tablets, and could be encroaching on Intel's PC market next year.
To fight back, Intel is moving its chips into cellphones. Last week, it announced that Lenovo Corp. will be making an Intel-powered smartphone for China, and Motorola Mobility Holdings Corp. of the U.S. has committed to using Intel chips for smartphones and tablets.