Intel CFO cautious due credit market troubles

SAN FRANCISCO (Reuters) - Intel Corp (INTC.O) Chief Financial Officer Stacy Smith said that even though his company had better-than-anticipated results he is being cautious in light of the turbulent financial environment.

The world's bigger computer chipmaker posted a 12-percent rise in third-quarter profit on Tuesday and the outlook was better than investors feared, sending its shares higher.

Intel had "some really strong results and those would normally be pretty bullish signs that would have us guide for a seasonal Q4," Smith said in a telephone interview.

"But based on the credit market issues that are roiling the market it's a little harder to get a handle on what end demand is in the fourth quarter."

Smith pointed to gross margins that were up 3.5 percentage points to 59 percent, higher than anticipated, and to operating profit growth of 37 percent, saying operating profit as a percent of revenue hit 30 percent.

He said Intel has decided to give a wider-than-normal range for its guidance.

Intel said it expects revenue in the fourth quarter of $10.1 billion to $10.9 billion. Analysts were looking for revenue between $10.4 billion and $11.18 billion, according to Reuters Estimates.

Smith said that in the third quarter the Asia-Pacific region was above seasonal patterns, including Japan. He said Japan did well because of a shift to laptops.

But Smith said Europe and the United States were below seasonal patterns.

"We did see a little bit of weakness in the corporate sector of the business," he said of Europe and the United States.

Smith said he was pleased with sales of the low-priced Atom processor, which was rolled out in March.

"It's doing exactly what we hoped it to do," he said, adding that it had incremental growth, "and that growth is profitable for us."

(Reporting by David Lawsky; Editing by Tim Dobbyn)