SAN FRANCISCO (AP) — Intel Corp.'s third-quarter numbers show the company is getting better at doing more with less in the toughest stretch for the personal computer industry in nearly a decade.

The world's No. 1 microprocessor maker said yesterday that profit and sales both fell eight percent in the July-September period, as the company was hurt by sluggish demand from businesses and lower prices for its chips. Intel has insisted things are improving, however, and offered better-than-expected guidance for the fourth quarter, sending its shares up five percent. As the first major technology company to report third-quarter earnings, Intel's numbers will lend insight into the strength or weakness of PC makers' demand for new chips. What the figures don't necessarily show, though, is whether PC companies are stocking up on chips to replenish low supplies, or whether they expect especially brisk sales of computers. That will begin to play out in the coming weeks, as the holiday season gets under way and a new edition of Windows comes out October 22.

Intel's chief financial officer, Stacy Smith, said demand from consumers for PCs has been strong, but spending by corporations remained weak. He said Intel doesn't expect business spending on PCs to pick up again until next year.

Intel said after the market closed that its net income was $1.9 billion, or 33 cents per share. Analysts expected 28 cents per share, according to a poll by Thomson Reuters. Last year, Intel's profit was $2.0 billion, or 35 cents a share, in the year-ago period.

Sales were $9.4 billion, better than Wall Street's forecast of $9.0 billion.

Intel had bumped up Wall Street's expectations twice. The first time was in August, when it raised its guidance, and the second was last month, when its CEO, Paul Otellini, predicted that PC sales could defy predictions by growing in 2009, which would avert the first year-over-year sales decline since 2001.

The company's gross profit margin was 57.6 percent of revenue. Its previous forecast was for 51 percent to 55 percent of revenue, and in the last quarter the figure was 50.8 percent of revenue.

For the fourth quarter, Intel forecast sales of $10.1 billion, plus or minus $400 million. Analysts expected $9.5 billion.

Intel shares jumped $1.04, 5.1 percent, to $21.53 in extended trading. Before the earnings report the stock had closed at $20.49, up 9 cents on the day.