Intel Reports Flat Revenue, but Says Growth Is Ahead SAN FRANCISCO - As PC makers regroup after the floods in Thailand last autumn, Intel is preparing to regain dominance of the computer chip market. Adrian Bradshaw/European Pressphoto Agency Computer makers will be releasing a range of ultrabooks, like those that use Intel chips. Although Intel reported Tuesday that sales of its chips for personal computers and servers were flat in the company's first quarter compared with the first quarter a year ago, industry analysts have predicted renewed demand for PCs. Paul S. Otellini, Intel's chief executive, said in a statement issued after the company announced its earnings that chips for smartphones and servers in the second quarter would provide "a tremendous foundation for growth in 2012 and beyond." Intel's net income for the first quarter was $2.7 billion, or 53 cents a share, down 13.4 percent from $3.2 billion, or 56 cents a share, a year ago. Revenue of $12.9 billion was up slightly from $12.8 billion a year ago. "The first quarter was a solid start to what's expected to be another growth year for Intel," Mr. Otellini said. A primary issue for Intel remains just how well it sells chips for mobile devices, particularly smartphones and tablets, as well as ultrabooks, a kind of lightweight laptop that can include touch screens in some models. Demand for smartphones, tablets and ultralight laptops like the Apple MacBook Air have been strong, while traditional types of PCs have been weak. Intel is also counting on strong demand for a new chip in computer servers that is meant for the booming market in cloud computing data centers. Several factors over the coming months could support Intel's projections of higher growth. Hewlett-Packard, Dell and other PC makers are coming out with a range of ultrabooks. Intel has been making advances in chips for smartphones, and the Intel phone chips are expected to appear in more devices using Google's Android operating system. Microsoft is expected by late summer to introduce its Windows 8 operating system, a decidedly different product receiving favorable advance notice, on several devices, including PCs and tablets. Devices using that software could also employ Intel chips. "Intel failed to be the innovator on smartphones and tablets, but they can be the fast follower," said Alex Gauna, analyst with JMP Securities in San Francisco. In the next year they will go to leading-edge chip processes, they'll have support from Android and Windows 8. They are putting good people on this. The improved chip processes include manufacturing chips with wires just 14 nanometers wide, instead of a current standard of 22 nanometers. Those chips will most likely be used in products in 2014. Intel also faces increased competition, particularly in mobile devices, from Apple, which may introduce new types of iPads to contend with smaller Android tablets. Qualcomm is also a strong challenger. It will provide chips for a variety of tablets running Windows 8. Last month Intel released a new version of its Xeon chip for servers in cloud computing data centers, one of the fastest-growing segments in tech. Cloud computing, which involves accessing computing systems via computers and phones, is rapidly becoming a standard for corporations. Revenue from the chip had little effect on the first quarter's earnings, however, given its release date. Shares in Intel fell 2.7 percent, to $27.69, in after-hours trading.