Intel Misses 1Q Earnings Forecast By A Penny

The shortfall included a one-time charge of about 1.7 cents per share to take care of a previously announced legal settlement with one-time rival Intergraph.

Overall, Santa Clara, Calif.-based Intel reported sales of $8.1 billion -- which was also slightly short of the $8.17 billion consensus estimate -- and a profit of $1.7 billion for the quarter ended March 27. That compared with sales of $6.75 billion and a profit of $915 million for the same quarter in 2003.

"Intel's first-quarter results showed healthy growth in both revenue and earnings compared with [results] a year ago, led by improvement in worldwide IT spending," Intel CEO Craig Barrett said in a statement.

"We ramped our 90nm process into high volume with the launch of several new desktop processors and plan to substantially increase shipments in the second quarter, including our first mobile and server products," Barrett said. "The combination of these products, plus new processors and platform innovations coming over the course of this year, positions us well for continued growth."

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Looking ahead to the second quarter, Intel said it expected its revenue to total between $7.6 billion and $8.2 billion. The Wall Street consensus revenue forecast is $8.09 billion.

Intel executives plan to explain the company's first-quarter results and business outlook in more detail later today in a conference call with financial analysts.