Still reeling from the effects of a reorganisation that included heavy lay-offs, Intel reported a profit of US$1.5 billion for the October-December financial quarter, down 39% on the same period last year.
Intel lost significant market share to rival AMD over the year, but many observers feel the company has rebounded in recent months with the launch of many new chips, including the Core 2 Duo and quad-core Xeon chips.
Intel says its sales of microprocessor units reached a record high, led by flash memory units. This was offset by soft sales of chipset and motherboard units.
Intel survived “a challenging year”, said chief executive Paul Otellini.