Intel said its quarterly profit rose 44 per cent over last year, reaching US$1.3 billion (£63 million) as low selling prices for its microprocessors were offset by higher than expected unit shipments.
The results came despite an ongoing price war as Intel and its rival AMD struggle for larger shares of the processor market. Both companies have been cutting prices on their chips as they upgrade their products from standard chips to dual-core and quad-core processors.
Intel is also in the final stages of a corporate reorganization that included the layoffs of thousands of workers in 2006, and at least 1,800 more layoffs planned for August. The company incurred restructuring charges of $82 million (£40 million) during the most recent quarter as it continued to adjust to the changes, Intel said on Tuesday.
Despite those challenges, Intel earned $0.22 per share on revenue of $8.7 billion for the quarter ending June 30, beating Wall Street expectations that the company would earn $0.19 per share on revenue of $8.54 billion, according to analysts polled by Thomson Financial. Intel also beat its own mark from the second quarter of 2006, when it earned $0.15 per share on revenue of $8.01 billion.