Tech giants post upbeat financials

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Three of the tech industry's leading bellwethers have reported better than expected profits for the first quarter, allaying some of the IT investment community's worst fears..

Intel reported strong demand for processors in the quarter, with a nine percent increase in revenue to US$9.67 billion and profits of US$1.4 billion.

The chip giant raised its forecast for gross margins for the year, thanks in part to sustained technical advances in 45nm manufacturing.

Intel chief executive Paul Otellini said in a conference call that the company's geographic reach had helped it benefit from a "strong global environment" boosted by positive sales in Asia.

IBM raised its own profit forecast for the year after posting net profits of US$2.32 billion, an increase of 26 percent from the 2007 period.

Mark Loughridge, chief financial officer at IBM, attributed the better than expected earnings to the use of cost-savings products in the US, as well as help from the weak dollar.

Google easily beat analyst expectations with net profits of US$1.31 billion, an increase of US$1 billion from a year earlier. Revenues for the quarter increased to US$3.7 billion from US$3.61 billion.

However, the week ended badly for AMD, which posted net losses of US$358 million between January and March.

Industry watchers pointed to the late arrival of the company's much anticipated quad-core Opteron processor line up as a contributing factor.
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