Intel, the world's largest maker of microchips, reported an 89% rise in quarterly profit yesterday as sales grew in all regions, but the company said the current quarter's revenue could miss expectations.

Intel's first-quarter profit surged to $1.73bn (£955m), including a $162m charge related to the settlement of a patent dispute.

While Intel's first-quarter profit matched analyst expectations, its forecast for the second quarter fell below Wall Street estimates. Intel also said profit margins in the quarter will be hurt by both lower revenue and increased spending on new chip-making technology.

Intel shares, last year's best performer in the Dow Jones index, closed up 7 cents to $27.67 on Nasdaq before the results were released. The shares dipped to $27.25 in after-hours trading.

First-quarter revenue grew 20% to $8.09bn, and earnings, excluding a 1.7-cent per-share charge, fell within expectations.