Intel sets the tone for the tech sector

For the three months to 27 March, the Californian-based company made a profit of $1.7bn, almost double the $915m recorded for the same period in 2003.

The improved performance is built on a surge in sales for Intel, which saw revenues for the first quarter of 2004 rise to $8.1bn.

This compares with the $6.75bn figure for the same period in 2003.

Growing markets

"Intel's first quarter results showed healthy growth in both revenue and earnings compared to a year ago, led by improvement in worldwide IT [information technology] spending," said Craig Barrett, Intel's chief executive officer.

Last year the strength [of the computer industry] was being driven by the emerging markets... we're now starting to see IT spending in all markets pick up Intel chief financial officer Andy Bryant

Earnings per Intel share are 26 cents, up from the 14 cents in the first quarter of 2003, but just short of Wall Street forecasts of 27 cents.

Intel now forecasts revenue for the second quarter to be between $7.6bn and $8.2bn.

The company had previously downgraded its sales expectations for the first quarter, blaming a stockpile of semiconductors in Asia.

Andy Bryant, Intel's chief financial officer, said the IT marketplace was continuing to recover across the globe.

"Last year the strength was being driven by the emerging markets. We're now starting to see IT spending in all markets pick up."