Finance counsels

Intel Corp. said Thursday that its fourth-quarter profit blew past expectations, confirming a rebound in the recession-battered personal computer market is underway.

Intel’s bright profit outlook for 2010 means the No. 1 maker of computer microprocessors sees a lasting recovery past the stellar fourth quarter — not an isolated holiday shopping blip.

PC shipments grew more sharply than expected in the quarter, a promising sign after a brutal year for the industry during the recession. Intel, which supplies the vast majority of the "brains" inside computers, rode the resurgence of consumer PC shopping to a profit of $2.3 billion, or 40 cents per share.

That was more than nine times as much as it earned in the year-ago quarter, when profit totaled $234 million, or 4 cents per share.

Intel also posted its highest gross profit margin in history, at 64.7 percent. A higher gross margin number means the chipmaker was able to turn more revenue into profit. It’s a key measure for a manufacturing-intensive company such as Intel because it reflects how well costs are held in check guaranteed personal loan approval.

Sales climbed 29 percent to $10.6 billion, as Intel sold more chips, many at higher prices than in the past.

Analysts expected a profit of 30 cents per share and $10.2 billion in revenue.

Intel is the first major tech company to report results for the fourth quarter, and it’s seen as a barometer for the PC market and for tech spending in general. Stacy Smith, Intel’s chief financial officer, said in an interview that he believes consumer spending will continue to drive growth in Intel’s business in 2010.

Intel hasn’t yet seen signs that big companies are feeling freer to replace old computers, but Smith said he believes it will happen this year, once the companies finish testing the new Windows 7 system from Microsoft that will be installed on most new workplace PCs.

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