Intel downgrades outlook after profit dips

Intel Corp. unveiled results that were better than expected Tuesday, helped by sales of chips used in smartphones and light "ultrabook" computers, but downgraded its outlook for the coming months.

The world's biggest chipmaker said its profit in the past quarter was $2.8 billion, a drop of four percent and above most analyst expectations.

That amounted to 54 cents per share, two cents better than the consensus.

But revenues were slightly below expectations, rising four percent to $13.5 billion.

And the California company said that global economic weakness will likely limit demand for new gadgets.

"The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in ultrabooks and smartphones," said Paul Otellini, Intel president and chief executive.

"As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment.With a rich mix of ultrabook and Intel-based tabletand phoneintroductions in the second half,combined with thelong-term investments we're making inourproduct and manufacturing areas, we are well positioned for this year and beyond."

Intel said it now expects full-year revenue growth of between three and five percent, "down from the prior expectation for high single-digit growth."