Intel posted a net loss of $398 million, or 7 cents a share, after taking charges related to a $1.45 billion fine imposed by European regulators, which had ruled in May that the company had abused its market position to squeeze out rival Advanced Micro Devices Inc
Excluding the charges, Intel said on Tuesday it earned 18 cents a share in the second quarter, beating analysts' average forecast of 8 cents, according to Reuters Estimates.
The world's No.1 chip maker said revenue in the three months ending June 27 came to $8 billion, down 15 percent year-over-year, but well above the average forecast of $7.27 billion expected by analysts.
This time last year, Intel earned $1.6 billion in net income, or 28 cents a share.
Shares of Intel jumped 8 percent in after-hours trading.
(Reporting by Alexei Oreskovic; Editing by Tiffany Wu and Richard Chang)