Intel's results impressive in weak market

San Francisco: Intel Corp.'s third-quarter results on Tuesday offered some comfort for investors jittery about the weak state of the global computer market.

Net income rose 17 per cent and revenue rose 29 per cent, topping Wall Street targets.

Intel CEO Paul Otellini credited stronger sales of processors for laptop PCs and servers. Its stock rose four per cent.

The company also boosted its stock buyback programme by $10 billion (Dh36.7 billion) and offered strong revenue guidance for the all-important holiday fourth quarter.

Nonetheless, even as the numbers are encouraging for Intel, they're unlikely to reflect a meaningful change in the underlying dynamics that threaten to keep computer demand sluggish into the foreseeable future.

Market depressed

Debt worries, stubborn unemployment and the popularity of smartphones and tablet computers have depressed the market.

Consumers are hanging on to their existing PCs longer. Many corporations are doing the same. The US and European markets are particularly weak and have in fact contracted — a rare and troubling development for markets that had been mostly steadily expanding for decades.

Intel, which is based in California, said its net income was $3.47 billion, or 65 cents per share, compared with $2.96 billion, or 52 cents per share, a year ago.

Excluding special items, earnings were 69 cents per share. Analysts polled by FactSet expected an adjusted 62 cents per share.

Revenue was $14.2 billion, compared with $11.1 billion a year ago. Analysts expected $13.9 billion.