Intel met first-quarter profit expectations but fell slightly short of revenue projections Tuesday, citing sluggishness in its personal computer business but strong growth in the data center segment.
The chipmaker posted earnings per share of 41 cents, compared to 38 cents per share a year earlier. Revenue came in at $12.78 billion, nearly flat from $12.76 billion.
"We had enough growth in the data center, Internet of Things and memory to actually keep the company flat," said Intel Chief Financial Officer Stacy Smith in an interview on CNBC's "Closing Bell."
Smith added that Intel projects the PC segment to be "more flat than a growth market" moving forward.
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Analysts expected the company to post earnings of 41 cents per share on revenue of $12.9 billion, according to a consensus estimate from Thomson Reuters.
Revenue in its client computing group fell 8 percent year over year to $7.4 billion. Intel touted its data center segment, which saw sales rise 19 percent to $3.7 billion.
Internet of Things revenue grew 11 percent from a year earlier to $533 million.
"We expect the PC market to remain challenging," said Intel CEO Brian Krzanich in the company's earnings conference call Tuesday.
The company also issued second-quarter sales guidance of $13.2 billion. Intel set its full-year revenue outlook as "approximately flat" from the previous year.
The chipmaker previously warned on decreasing PC demand. Last month it lowered its first-quarter revenue guidance by nearly $1 billion, citing "weaker-than-expected demand for business desktop PCs and lower-than-expected inventory levels across the PC supply chain."
Intel shares have plunged 13 percent this year.