Qualcomm earnings rise on smart phone demand: The future of FLO TV is still up in the air

Qualcomm Inc. (QCOM) reported $865 million in net income on $2.95 billion in revenues during its quarter ending Sept. 26. In the year-over-year column, revenues are up 10% and net income is up 8%.
Overall, 111 million CDMA-based units were shipped during the quarter, which is up 22% from the year-ago period and 8% from the previous quarter. The full year ended with 399 million CDMA-based units, marking a 26% year-over-year increase.
The San Diego powerhouse ended the quarter with $18.4 billion in cash.
During the earnings call, Chairman and CEO Paul Jacobs said the company achieved “record earnings per share and record MSM (mobile station modem) shipments volumes” during the quarter. “Our Snapdragon chipset set the benchmark,” he continued, adding that “we continue to grow share in WCDMA chipsets.”
He also mentioned the company’s Mirasol display technology, calling it “disruptive,” and said it will be used in a limited volume of mid-sized tablet devices in the first half of 2011.
Jacobs didn’t talk much about FLO TV, but reiterated the company’s decision to cut its losses and change direction. He also acknowledged the company’s plan to shutter the direct-to-consumer service, but wouldn’t hint at any plans beyond that for the service.
Qualcomm is weighing a series of options, he said, including a “new wholesale mobile, sale, joint venture with a third party, and/or sale of the spectrum license and discontinuation of the network.”
The company expects to take on charges of $125 million to $175 million in the coming year related to the shut down.
During a question-and-answer period, the company said it expects the first LTE broadband cards to ship before the holidays and the first LTE handset to be announced at the 2011 International Consumer Electronics Show.