Intel Quarterly Earnings Jump 29 Percent

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.

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