(By Balachander) Intel Corp. (NASDAQ:INTC) reported a fall in quarterly earnings as revenue trailed market expectations and expenses jumped. However, non-GAAP profit topped consensus.
The world's largest chip maker earned 57 cents a share on a non-GAAP basis, flat with the year-ago quarter. Net earnings fell 4.4 percent to $2.83 billion.
Revenue rose 3.6 percent to $13.5 billion.
Analysts, on average, polled by Thomson Reuters expected earnings of 52 cents per share on revenue growth of 4.10 percent to $13.56 billion for the second quarter.
Non-GAAP gross margin improved to 64.4 percent from 61.7 percent in the same period of last year, but fell from 65.1 percent on a sequential basis.
Operating expenses jumped 19.2 percent to $4.72 billion.
Looking ahead for the third quarter, Santa Clara, California-based Intel sees GAAP revenue of around $14.30 billion, versus analysts forecasts of $14.60 billion.
Intel now forecasts revenue in the range of 3 percent to 5 percent for 2012, down from high single-digit growth projected earlier. It sees non-GAAP gross margin of 64 percent to 65 percent, plus or minus a few percentage points.
For the first quarter, Intel earned 56 cents a share on revenue of $12.9 billion.
INTC closed Tuesday's regular trading session at $25.38. The stock has been trading in the 52-week range between $19.16 and $29.27.