(Intel earnings story updated with investor reaction)

SANTA CLARA, Calif. ( TheStreet) -- Intel ( INTC) has reported blockbuster first quarter earnings and has provided second-quarter guidance that exceeds analysts expectations...and is crowing about it, to boot. "This will set the bar high for many tech companies," RealMoney contributor Timothy Collins said in his Outside the Box blog.

"The investments we're making in leading edge technology are delivering the most compelling product line-up in our history," Intel's CEO Paul Otellini said Tuesday. "These leadership products combined with growing worldwide demand and continued outstanding execution resulted in Intel's best first quarter ever. Looking forward, we're optimistic about our business as Intel products are designed into a variety of new and exciting segments."

Intel expects revenue of $10.2 billion, plus or minus $400 million, for the second quarter, above the Wall Street consensus estimate of $9.69 billion. The company plans to spend about $6.4 billion in research and development for the current fiscal year.

Also, for the full-year, Intel provides gross margin percentage guidance, a key financial metric, of 64%, plus or minus a couple of percentage points, compared with the company's prior expectation of 61%, plus or minus 3 percentage points.

For the quarter, Intel reported net income of $2.4 billion, up 288% from the previous year, or earnings of 43 cents a share, up 32 cents. The company reported revenue of $10.3 billion, up 44%. Wall Street analysts had expected earnings of 38 cents a share on revenue of $9.83 billion.

Intel said that during the quarter its PC client group revenue was flat, with record mobile microprocessor revenue; its data center group revenue was down 8%; its other Intel architecture group revenue was down 9%; and the company's average selling price (ASP) for microprocessors was slightly up.

Intel stock ended Tuesday's trading session up 1% at $22.80, and has gained more than 3.8% in after-market trading.

-- Reported by Andrea Tse in New York

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