Chip maker Intel has reported net profits of $2.15 billion for the first quarter of 2005, up 25% on the same period last year. Revenues were lifted by strong demand for mobile computer chips.
Intel said its earnings amounted to 34 cents a share, better than the average Wall Street estimate of 31 cents per share. Revenue in the quarter to April 2 hit $9.4 billion, up 17%.
Intel's first quarter included an additional week of business because 2005 is a 53-week fiscal year for the company.
Intel sold more of its newest products, which carry a higher profit margin, as computer makers sell more laptops with wireless internet connectivity. Intel microprocessors run more than 80% of the world's personal computers.
The company said its gross margin, an important profitability measure, came in at 59.3% of sales, higher than the 57% Intel had projected last month. It also raised its 2005 gross margin target to 59% from 58%.
Chip stocks this year have languished as investors worried about how demand was shaping up after slowing sales of personal computers.
Intel said second quarter revenue would fall within the current range of Wall Street's expectations, $8.6 billion to $9.2 billion.
