Intel, which has a partnership with Micron in IM Flash Technologies in Lehi, also raised its full-year profit margin guidance and said it would spend slightly more on research and development in 2007 than the company had previously forecast.
AMD has slashed its revenue forecast and is expected to post a loss of 48 cents per share when it reports its own first-quarter results on Thursday.
Intel, the world's largest semiconductor company, said after the market closed Tuesday that it earned $1.61 billion, or 27 cents per share, in the first three months of the year. That compares with net income of $1.36 billion, or 23 cents per share, in the same quarter last year.
The company said the latest profit includes a reversal of $300 million of previously accrued taxes that were added back into the company's coffers. It increased the earnings per share by about 5 cents.
The tax benefit stemmed from Intel's resolution of a dispute with the IRS over its method of accounting for certain export sales. The IRS had wanted to hit Intel with more than $2 billion in charges for back taxes from 1999 to 2005, but the two sides resolved the matter for an undisclosed sum.
Intel said revenue in the quarter was $8.85 billion, down slightly from last year's $8.94 billion. Analysts surveyed by Thomson Financial were expecting the company to earn, on average, 22 cents per share on nearly $9 billion in revenue.
Intel shares gained 29 cents, or 1.4 percent, to close at $20.98 on the Nasdaq Stock Market. In extended-session trading, they gained 45 cents.
Sales were down across the board in all of Intel's major divisions, and average selling prices were lower in the lucrative market for corporate server processors. Prices for desktop and mobile computer processors were approximately flat.
However, Intel was able to offset the slumping sales with lower manufacturing costs because of its shift to more advanced manufacturing techno- logy.
Yahoo Inc.
The Internet search engine company's first-quarter profit fell 11 percent, disappointing investors who have been betting that the Internet icon had regained its stride after stumbling through much of last year.
The letdown zapped Yahoo's stock, which plummeted more than 8 percent after the results were released Tuesday. Management added to the angst by leaving its financial outlook for the remainder of the year unchanged from its last forecast three months ago.
The company earned $142.4 million, or 10 cents per share, during the three months ended in March. That compared with net income of $159.9 million, or 11 cents per share, at the same time last year. The results were a penny below the average earnings estimate among analysts surveyed by Thomson Financial.
Revenue for the period rose 7 percent to $1.67 billion.
Johnson & Johnson
The health-care products maker said its first-quarter profit fell 22 percent as a big charge for an acquisition offset record sales.
The maker of contraceptives, contact lenses, prescription drugs and baby products reported net income of $2.57 billion, or 88 cents per share, down from $3.31 billion, or $1.10 per share, in the first quarter of 2006. Sales totaled $15.04 billion, up nearly 16 percent.
Washington Mutual Inc.
The financial institution reported a 20 percent slide in its first-quarter earnings, citing a nationwide implosion of the subprime home loan market. Even so, the company beat Wall Street estimates, and its stock rose in after-hours trading.
The nation's largest savings and loan said its net income was $784 million, or 86 cents a share, for the three months ended March 31, down from $985 million, or 98 cents per share, in the same period a year ago. Revenue, including net interest income and noninterest income, was $3.62 billion, up from $3.59 billion.
International Business Machines
The world's biggest computer-services corporation said first-quarter profit increased 8 percent because of new contracts and software acquisitions.
Net income rose to $1.84 billion, or $1.21 a share, from $1.71 billion, or $1.08, a year earlier. Sales gained 6.6 percent to $22 billion.
The Coca-Cola Co.
The world's largest beverage maker said its first-quarter profit jumped 14 percent on a double-digit rise in sales, despite continuing problems in its North America unit. The results beat Wall Street expectations.
The company said it earned $1.26 billion, or 54 cents a share, compared to a profit of $1.11 billion, or 47 cents a share, for the same period a year ago. Revenue rose 17 percent, to $6.10 billion.
Wells Fargo & Co.
The biggest bank on the U.S. West Coast said first-quarter profit rose 11 percent to a record as borrowing by companies helped it withstand higher loan losses and a drop in the value of its subprime mortgages.
Net income increased to $2.24 billion, or 66 cents a share, from $2.02 billion, or 60 cents, a year earlier. The average estimate of 20 analysts compiled by Bloomberg was 65 cents. Revenue advanced 10 percent to $9.44 billion.
U.S. Bancorp
The sixth-largest U.S. bank by assets said its first-quarter profit declined 2 percent as it paid out more in interest and bought back more of its shares.
The bank said it earned $1.13 billion, or 63 cents per share, down from $1.15 billion, or 63 cents per share, during the same period last year. Revenue of $3.36 billion was up slightly from $3.34 billion a year ago.
