However it did indicate that it would be cutting capital expenditure this year.
Wall Street had expected things to be bad. Intel hit the drastically lower revenue forecast it offered for itself last month, but investors breathed a sigh of relief that the company, which is struggling with shrinking demand for PCs, did not have any more bad news.
Intel forecast current quarter revenue of $13.2 billion, plus or minus $500 million, based on expectations of stronger demand for its personal computer chips and continued strength in its data centre business. Analysts were expecting $13.51 billion.
For the full year, Intel forecast flat revenue, also in line with Wall Street’s estimates.
Intel said it would cut 2015 capital expenditures to $8.7 billion from $10 billion, a reduction that analysts said should improve free cash flow.
Intel reported revenue of $12.8 billion for the first quarter, ended March 28, flat compared to a year ago and slightly below analysts’ average estimate of $12.9 billion.
The chipmaker had slashed its first-quarter revenue forecast by nearly $1 billion to $12.8 billion in March, citing weak demand for PCs.
The company posted net profit of $1.99 billion – up from $1.93 billion last year.
The company, which reported consolidated results for its PC and money-losing mobile businesses for the first time, had posted better than expected profits in the last four quarters.