Intel Cuts Tax Bill, Boosts Profit

Intel Corp. reduced its tax bill by $24 million in the first quarter, boosting net income by a penny a share above the level it reported April 19, the world’s largest chip maker said Wednesday.

“Subsequent to our earnings release on April 19, 2005, we recorded a tax adjustment that reduced the tax provision by $24 million,” the company said in a quarterly filing with the Securities and Exchange Commission.

As a result of the adjustment, earnings per share rounded to 35 cents, Intel said. The company had reported earnings of 34 cents a share, up from the year-earlier 26 cents.

Also in the filing, Santa Clara, Calif.-based Intel for the first time reported results for the new business units created in a corporate reorganization in January.

The company’s digital enterprise group, which includes chips and related parts for desktop and server computers, reported first-quarter operating income of $2.36 billion, down from $2.45 billion in the same period last year.

The mobility group, which includes chips for notebook computers and cellular phones, reported $1.1 billion in operating income, more than double the $405 million from a year earlier.

A third group that encompasses all other business, including the company’s early initiatives in healthcare and digital home entertainment, had an operating loss of $432 million, wider than a loss of $377 million in the same period last year.

Previously, the company had two groups: a profitable computer chip business and a money-losing communications group.

Shares of Intel rose 10 cents to $24.77 on Nasdaq.