Intel's orders and billing patterns so far in the second quarter have been slightly better than expected, chief executive Paul Otellini said last night.
He told investors that second-quarter sales depend on how they fare in June but "so far, so good" - in remarks that sent shares of the world's biggest chip maker up as much as 4 percent in extended trading.
"We are halfway through Q2," Mr Otellini said. "In terms of our order pattern and our billing pattern, it's a little better than expected."
Last month, Mr Otellini said the worst was over for the battered tech sector as Intel reported its first-quarter earnings, but its shares slid as executives said economic uncertainty prevented them from giving a detailed outlook.
Intel, which controls 80 per cent of the microprocessor market, is seen as a bellwether for the personal computer and technology industry. But it has struggled in the economic downturn, shutting plants and trimming 1,400 jobs since the fourth quarter.
Mr Otellini said last night that Intel should end the year with around 78,000 employees, down about 25 per cent from a peak of 103,000 in 2006.
Intel has said it was planning for second-quarter revenue to be flat with the $7.1 billion reported in the first quarter. But some analysts said the guidance was conservative, and Reuters Estimates showed analysts expecting a slight increase in each quarter for a year-end total of $30.3 billion.
Separately the European Commission is set to rule today on what if any action to take against that Intel for paid alleged anti-competitive practices in which it allegedly paid computer makers not to use AMD chips in certain products.