Intel profit soars; IT's on the mend

SAN FRANCISCO: Intel, the world's largest chipmaker, projected bigger first-quarter sales than analysts had estimated, a sign the computer industry has shaken off the effects of the recession. The company forecast first-quarter revenue of about $9.7 billion on Thursday, compared with the $9.34 billion average estimate in a survey. Santa Clara, California-based Intel also reported a surge in fourth-quarter sales and profit.

Intel expects its profit margin to hit a 10-year high this year as consumers snap up laptops and businesses loosen the purse strings on technology budgets. Intel posted its biggest quarterly revenue in more than in a year. Gross margin was a record 65%.

The margin will be about 61% this year, Intel said. Fourth-quarter net income increased more than nine-fold to $2.28 billion, or 40 cents a share, Intel said. It amounted to $234 million, or 4 cents a share, a year earlier, when investment writedowns crimped profit. Intel's revenue rose 28% to $10.6 billion last quarter - the first period of growth in more than a year.