Intel Corp posted a 43 percent rise in quarterly profit on strong sales of microprocessors for notebook computers and it gave a better-than-expected outlook, sending shares up 5 percent.
The news indicated that the world's top maker of microchips was gaining market share from smaller rival Advanced Micro Devices Inc, and also boded well for personal computer sales in the fourth quarter, analysts said.
"The overall message is one of strong demand," Intel Chief Financial Officer Andy Bryant said in a telephone interview, adding that third-quarter revenue rose 16 percent sequentially, which was the highest growth rate in 10 years.
Intel said its third-quarter net income rose to $1.86 billion, or 31 cents per share, from $1.30 billion, or 22 cents per share a year earlier. The results were helped by Intel's restructuring efforts as it moved to new technology.
Revenue rose 15 percent to $10.1 billion, Intel said. Wall Street was looking for revenue of $9.6 billion and earnings per share of 30 cents in the third quarter, according to Reuters Estimates.
Intel also named a new chief financial officer on Tuesday: Stacy Smith, who joined the company in 1988. She will report to Bryant, who is becoming the chief administrative officer. For the current quarter, Intel forecast revenue of $10.5 billion to $11.1 billion and a gross margin of 57 percent, plus or minus a couple of percentage points, up from 52.4 percent in the just-reported period.