Intel results beat expectations

US chipmaker Intel has reported a better-than-expected net profit of $1bn (£610m) for April to June, excluding a massive European Commission fine.

Including the fine, levied for anti-competitive practices in May, the company made a loss of $398m.

Revenue for the three months stood at $8bn, a 15% fall compared with $9.4bn for the same period last year.

Earlier on Tuesday, banking giant Goldman Sachs also reported strong second-quarter results.

Positive outlook

"Intel's second quarter results reflect improving conditions in the PC market segment, with our strongest first to second quarter growth since 1988 and a clear expectation for a seasonally stronger second half," said Intel boss Paul Otellini.

Analysts were also upbeat about the second quarter results.

Ashok Kumar at Collins Stewart described the numbers as "extremely strong given the economic backdrop", while Doug Freedman at Broadpoint Amtech said more good news was to come.

"Intel has a much stronger seasonal second half. So the fact that the second quarter is better than the first quarter clearly puts the worst behind Intel," he said.

Earlier on Tuesday, computer giant Dell said demand from businesses remained "very weak", but that the PC market may have reached its low point.

Intel was fined just over 1bn euros by the European Commission for anti-competitive practices.

The Commission found that between 2002 and 2007, it had paid manufacturers and a retailer to favour its chips over those of Advanced Micro Devices (AMD).

Intel said it would appeal against the verdict.

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