Intel beats forecasts with profit of $1.6 bn

SAN FRANCISCO: Intel Corp says its second-quarter profit jumped 25 percent. Blossoming sales of laptop chips helped the company cruise past Wall Street's estimates.

The chip maker said Tuesday that net income was $1.6 billion, or 28 cents per share, in the quarter.

That was 3 cents per share higher than what analysts surveyed by Thomson Financial were expecting. It was a 25 percent jump from the $1.28 billion, or 22 cents per share, that Intel earned a year ago.

Sales set a record at $9.5 billion, up 9 percent over last year and $150 million higher than analysts' forecasts.

Some analysts' expectations were subdued on fears that the sputtering US economy could be dragging down PC sales. They could be reassured that Intel's sales forecast for the current quarter is in line with Wall Street's predictions.