Intel forecast sales in the second quarter that can top estimates

April 19, 2011, 8: 41 pm EDT by Olga Kharif and Ian King

(Updates with comment by the Chief Executive in paragraph 10).

April 19 (Bloomberg) — Intel Corp., largest maker of the world, sales forecast in the second quarter that can top estimates by analysts, evidence of demand growing for calculation on the Internet.Revenue to provide machinery will be $ 12.8 billionmore or less 500 million dollars, Intel said today in a statement. That compares with $ 11.9 billion, or the average of forecasts of analysts compiled by Bloomberg. Shares rose 6.7% in late trading.The company benefits such as mobile devices, including iPad stimulates demand Apple Inc. online services provided by the Intel-powered servers. Even though PC sales came under pressure from the last quarter, Intel 80% share of the microprocessor market stimulates sales when companies upgrade their server and PC fleets. "It is the force of a new product cycle,"Hans Mosesmann, an analyst at Raymond James & Associates Inc., said in an interview. "There is a cycle of cooling occurring in the space of servers, and that they probably earn part" Intel, based in Santa Clara, California, has increased by high $21.19 in commerce extended after the report. The shares had gained 24 cents to $19.86 to 4 p.m. time in New York on the Nasdaq Stock Market. The stock lost 5.6% this year.Net profit for the first quarter past 29 per cent to 3.16 billion, or 56 cents per share, of 2.44 billion dollars, or 43 cents, a year earlier. Analysts on average had estimated profits of 46 cents. Sales increased 25% to $ 12.8 billion, compared to an average forecast of $ 11.6 billion.DemandCustomers of clouds are snapping the machines necessary for the performance of computers, software and storage on the Internet - via the so - called cloud. Sales of servers used to deliver computer clouds may rise to 6.4 billion in 2014, which represents 1.3 million units, of 3.8 billion dollars, or 600 000 units, the last year, according to researcher IDC. "The server company has exceeded our expectations in high demand since the data center segment continued,"Intel Chief Financial Officer Stacy Smith said in a release posted on the Intel Web site.The gross margin, the only indicator of profitability that Intel forecast, will be 61%, to a few percentage points, this quarter, the company said. Gross margin - the percentage of sales after deduction of the expenses of production - a 61 per cent in the first quarter.Sales of the company of SalesThe of server chips for servers, storage and networking devices should reach $ 10 billion this year, Director General Paul Otellini said on a conference call to discuss earnings.What we are witnessing an explosion of computing devices that connect to the Internet, and Intel is a large part of this trend, "Otellini said."The chip manufacturer also more companies expected to buy its microprocessor-based computers, they continue to refresh their PCs. Intel estimates that 75 percent of corporate computers always run software for Windows XP from Microsoft Corp... PC sales should grow to a percentage to the low two digits in 2011, said Otellini.Intel also faced challenges in the first quarter. The company said in January that one of the support chip that makes for its microprocessors had a fault that would cost 300 million dollars in sales in the first quarter. He predicted to spend $ 700 million to replace systems and chips defective.On 13 April, IDC said shipments of global personal computer unexpectedly fell 3.2% in the first quarter as businesses and consumers held offshore on the purchase of new PCs. The firm market said also on 11 March earthquake and tsunami in the Japan and disorders in the Middle East can disrupted sales of PC.Mobile, Tablet LaggardThe results can help to allay the fears of investors that the company has yet to parlay dominance on PC market for mobile and Tablet phone chips.Apple iPad Tablet is working on a processor of mobile phone based on the technology of ARM Holdings Plc. Some manufacturers of rival tablets have opted for less power hungry design smart now offered by Intel. The popularity of tablets is cutting into sales of portable computers, said Christopher Danely, analyst from JPMorgan Chase & Co.On April 11, Intel announced a new product, called Oak Trail, and sold under the brand of the atom, which is 60% smaller than its predecessor and will provide a "day" battery life in the touch-screen computers. And the company has designed a handset which may be manufactured by ZTE Corp. China, according to two people with knowledge of the plan.In the call today, the company has touched on how it intends to gain ground in mobile devices, especially chips for phones, a market dominated by rivals such as Qualcomm Inc.Some 35 tablets based on Intel chipsets should get out of this yearmost of them based on the operating system Android for Google Inc.Otellini said. He said he would be "very disappointed" If there is not a phone based on the Intel chips available for sale to 12 months.(Intel held a conference call with analysts to discuss the results at 5: 30). New York Times. To listen go to {LIVE } or www.intc.com).

-Editors: Jillian Ward, Tom Giles.

To contact the reporters on this story: Olga Kharif in Portland, Oregon, at okharif@bloomberg.net.

To contact the editor responsible for this story: Tom Giles at tgiles@bloomberg.net.

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Intel to map Plans for $ 200 million, or 10 000 elderly health study

Intel Corp. will help the Fund to work on a proposal for a study of $ 200 million of the technology used to provide care at home for the elderly, and Eric Dishman, an Intel fellow and Director of health innovationsaid in an interview.

The study will focus on the use of technology by 10 000 elderly people, said Dishman. Intel is looking for partners who can put funding for the proposal and the study and end a proposal describing the study of this year, he said.

In an effort of 5 to 10 years, researchers predict use sensors, computers connected to the Internet and other devices to capture data on daily activities of older persons, such that when they take the medicine and the speed with which they move on the House. The goal is to prove that the technology can follow physical and cognitive decline and understand how technology can help improve care providers for older persons in the settings of the home, hospitals and other facilities where care costs have skyrocketed in recent years. The so-called technology of aging on the spot market is expected to surge. Income comprehensive monitoring in patients with diseases such as diabetes and heart arrhythmia should increase to 16.6 billion in 2015, $ 11 billion last year, according to the Swedish consultant Berg Insight.

"There are likely to be more seniors which need you assistance at home," Andre Malm, senior analyst at the Berg, said in an interview. "It is a way to improve the quality of life for patients who want to live at home." What is needed, it is good, independent research "to prove that technologies to home work." The number of Americans aged 65 years or more will be increased to 72.1 million by 2030, 39.6 million in 2009, according to the Administration on aging.

One goal is to prove that technologies at home can be useful for early detection of diseases, and alert as grave emergency care providers, said Dishman. "I am certain that we will find ways to increase the prevention of falls and reduce depression," he said. Computers could remind consumers with Alzheimer's disease, for example, what they discussed in a previous conversation. A door can notify a caregiver that a person who has not gone outside for four days.

"You can solve a problem earlier, before becoming a clinical," Paul Crawford, Research Director of health for Intel Labs product, said in an interview. "Intel tries to make a living in the digital age." It's analog age now. "Crawford and Jeff Kaye, Professor at the University of Oregon Health & Science, are leading the work on the proposal. The study should be administered by the Foundation for the National Institutes of Health.

The study can begin as early as 2012, if additional funds are secure, Dishman said. His study SILvR (Senior independent living research) Initiative could cost 200 million dollars over 10 years and eventually followed some 10,000 households with seniors, he said. The exact cost of the study will be determined this year.

Potential donors of the work of proposal include the Robert Wood Johnson Foundation and the National Science Foundation, said Dishman. Robert Wood Johnson Foundation, which provides funding for public health projects, is "intrigued by the idea", Paul Tarini, senior officer of the Foundation programme, said in an interview. The Organization spoke with Intel on the study and is currently awaiting a funding proposal.

Intel makes chips and software used in home care. The company and GE Corp. formed a joint venture focused on technologies for independent living and telehealth in August.

Intel invested in technologies for 12 years senior health care, funding more than 100 University Grants, said Dishman.

Once the proposal is completed by the end of the year, Intel will push us and the European Union authorities to fund the study, said Dishman. Intel also spoke with representatives of the White House, including federal Chief Technology Officer Aneesh Chopra and shoot the study becoming an issue in the presidential election in 2012, he said.

"It is too expensive even for Intel alone produce clinical and financial evidence that these technologies detect diseases and reduce costs," said Dishman. "Even competitors need to meet and co-invest."

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