- Associated Press - Tuesday, July 13, 2010

SAN FRANCISCO (AP) - Intel Corp. posted its largest income in a decade Tuesday as the company benefits from a strengthening computer market and more sophisticated factories.

The results topped Wall Street’s forecasts, and Intel raised its guidance, but that may not be enough to quell fears about cracks in the computer industry’s recovery amid fresh economic worries.

Intel reported after the market closed Tuesday that net income was $2.89 billion, or 51 cents per share, in the quarter ended June 26. That compares with a loss of $398 million, or 7 cents per share, a year ago, when Intel was forced to pay a $1.45 billion fine in Europe over antitrust violations.

Analysts expected net income of 43 cents per share in the latest period.

The last time Intel’s quarterly net income topped $2.5 billion was in 2000 during the dot-com heyday.

Revenue was $10.77 billion in the latest period, above the $10.25 billion expected by analysts surveyed by Thomson Reuters.

Intel’s revenue forecast of $11.20 billion to $12 billion for the third quarter is higher than analysts’ projections for $10.92 billion.

Intel also raised its profit forecast. The company now expects gross profit margin _ a key measure of a company’s ability to control costs _ of 64 percent to 68 percent of revenue. Its previous forecast was for 62 percent to 66 percent.

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