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Intel profits down for Q1 2012

Quarterly net profits at $2.7bn but still beats analyst expectations

Intel expects a growth year in 2012 says Otellini.
Intel expects a growth year in 2012 says Otellini.

Intel has posted $2.7 billion net profit for Q1 2012, marking a drop from to $3.16 billion in the same quarter least year, but still beating analyst expectations.

Revenue was $12.9 billion, compared to the $12.85 billion revenue of a year ago, with the company reporting a slowdown in PC and server chip sales.

Revenue for the PC client group, which sells PC, tablet and smartphone microprocessors, fell to $8.45 billion from $8.62 billion. Revenue for the Data Center Group, which sells server equipment, was $2.45 billion, flat compared to the $2.46 billion a year ago. Software revenue grew to $571 million, compared to $240 million a year ago.

“The first quarter was a solid start to what’s expected to be another growth year for Intel,” said Paul Otellini, Intel president and CEO. “In the second quarter we’ll see the first Intel-based smartphones in the market, ship products based on 22nm tri-gate technology in high volume, and accelerate the ramp of our best server product ever, providing a tremendous foundation for growth in 2012 and beyond.”