Computer processor maker Intel reported an eight-percent sequential decrease in quarterly revenue generated by its Data Center Group in the first quarter of 2010.

The group, which includes Intel's products for servers, storage and other data center IT infrastructure components, reported a drop in revenue that was in line with several of the company's other divisions, some of which reported a similar revenue decline and others' numbers were either flat or slightly up.

Still, the company has made large leaps in revenue growth when comparing the last quarter with the same period in 2009.

"The investments we're making in leading edge technology are delivering the most compelling product line-up in our history," Intel President and CEO Paul Otellini said in a statement.

"These leadership products combined with growing worldwide demand and continued outstanding execution resulted in Intel's best first quarter ever."

Intel reported a total of $10.3 billion in revenue for the quarter, down three percent sequentially but 44 percent up year-over-year.

Its net income for the three months was $2.4 billion - a seven-percent jump up from the previous quarter and a 288-percent increase from the first quarter of the preceding year.

The company invested $3.1 billion in its research-and-development and merger-and-acquisition activities during the quarter. It expects to have invested the same amount into these activities in the second quarter.

Intel expects its second-quarter revenue to be $10.2 billion, with a $400-million error margin.

Intel's new Xeon 5600 processors are optimized for greater security and server virtualization

The company's Data Center Group's biggest announcement during the year's first quarter was the release of the Xeon 5600 up-to-six-core processor line for servers.

The announcement was followed by a series of announcements by all major server manufacturers, such as HP, IBM, Dell and Fujitsu, who had launched new server products powered by the new chips.