Intel 2Q profit rises just 2 pct, but beats views

SAN FRANCISCO (AP) - Intel says its net income rose just 2 percent in the latest quarter but the results still topped Wall Street’s expectations.

CEO Paul Otellini says he has “increasing confidence” in the computer market’s prospects for the remainder of the year. Intel’s results reflect the strong demand for PCs in corporations and in emerging markets, and an increased need for computer servers to handle Internet traffic from smartphone and tablet computers.

Intel earned $2.95 billion, or 54 cents per share, in the second quarter, compared with $2.89 billion, or 51 cents per share, a year ago. Excluding some expenses, Intel earned 59 cents per share, ahead of analyst expectations for 51 cents per share.

Revenue was $13 billion, a 21 percent increase. Analysts polled by FactSet were expecting $12.8 billion.