SAN DIEGO—Qualcomm Inc. reported late yesterday that it earned $593 million in the company’s second fiscal quarter, an increase of 11 percent over the year-ago quarter, results that were in line with analysts’ expectations. The company attributed the solid growth to an increase in CDMA handset shipments and broad demand for its chipsets across product lines.
Qualcomm’s shares traded down slightly after the news, apparently in reaction to the company’s announcement that it is in talks with Nokia Corp. to resolve their differences as a licensing agreement between the two parties lapses in about a year. Both parties made optimistic statements regarding the talks, which are common in the industry. The current agreement and talks over renegotiating its terms take on heightened interest due to the players. Nokia is the world’s largest handset maker and Qualcomm is the dominant global player in CDMA-related technologies, including chips for CDMA phones.
Qualcomm also raised its profit outlook for the year, citing strong demand for its products, especially in Europe, to a level that matches Wall Street forecasts. Texas Instruments Inc., Qualcomm’s U.S. rival, reported a 42-percent increase in quarterly earnings on Tuesday.
