Qualcomm reports strong sales, profits, outlook

Qualcomm Inc. is riding a wave of demand for W-CDMA-enabled handsets, which drove its strong revenue and profits in the fiscal second quarter, the company said today.
“Worldwide adoption of 3G, CDMA-based products and services continue to accelerate,” said CEO Paul Jacobs, in a statement accompanying the San Diego chipmaker’s earnings report. “Based on the current business outlook, we are raising fiscal 2008 revenue and earnings-per-share guidance.”
In the company’s most recent quarter, Qualcomm earned revenue of $2.6 billion, up 17% over the year-ago quarter. Net income reached $766 million, up 6% over the year-ago quarter. Both revenue and income exceeded analysts’ forecasts.
Qualcomm’s stock rose nearly 1% on the news, then fell more than 2% in after-hours trading.
In a reflection that upgrade sales to higher-end handsets remain healthy, Qualcomm forecast that industry-wide handset ASPs in the third fiscal quarter would jump to $223 from $215.
Drivers of Qualcomm’s performance probably include market share gains by Qualcomm customers, including LG Electronics Co. Ltd., which reported a strong first quarter performance last week, and Samsung Electronics Co. Ltd., which reports Friday.