Investing.com -- Shares in computer chipmaker Intel Corporation (NASDAQ:INTC) gained more than 3% in after-hours trading after the California-based tech giant posted flat earnings for the first quarter released on Tuesday afternoon.
Intel reported net profits of $1.99 billion or 0.41 per share on Tuesday for the quarter that ended in late-March, up slightly from the 1.93 billion or 41 cents per share it earned during the same period in 2014. Intel also reported operating income of $2.6 for the quarter, up 4% on a year-over-year basis.
"Year-over-year revenues were flat, with double-digit revenue growth in the data center, IoT and memory businesses offsetting lower than expected demand for business desktop PCs," said Intel CEO Brian Krzanich. "These results reinforce the importance of continuing to execute our growth strategy. "
Krzanich blamed disappointing sales in the company's PC division for the flat revenues, which were offset by stronger figures in Intel's data center and non-volatile memory divisions.
Intel's Data Center Group posted revenue of $3.7 billion, an increase of 19% on a year-over-year basis. The company's Internet of Things Group also reported revenue of $533 million for the quarter, up 11% from the same period last year.
Merger negotiations between Intel and Altera (NASDAQ:ALTR), a California-based manufacturer of reconfigurable complex digital circuits, reportedly hit a snag last week amid divergent views on stock price. On Tuesday, shareholders of Altera pushed the company to resume the talks.
Shares in Intel rose 0.96 or 3.05% to 32.45 in after-hours trading.
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