SANTA CLARA (CBS/AP) — Intel’s earnings rose 29 percent as strong spending by businesses on new computers helped the company overcome a serious product design error and fallout from the deadly earthquake and tsunami in Japan. An extra week in the quarter also helped.
Net income was $3.16 billion, or 56 cents per share, higher than the 46 cents per share that analysts polled by FactSet expected. A year ago, Intel earned $2.44 billion, or 43 cents per share.
Revenue was $12.8 billion, up 25 percent from $10.3 billion a year ago and higher than the $11.6 billion that analysts expected.
The revenue forecast was stronger than expected.
Intel predicted second-quarter revenue of $12.3 billion to $13.3 billion. Analysts expected $11.9 billion.
Intel admitted to a serious design error in one of its chips.
(Copyright 2011 by CBSSan Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)