San Diego Business Journal

Qualcomm’s Net Profit Tops $1B in Quarter

Thursday, July 21, 2011

Qualcomm Inc. reported a net profit of $1.04 billion for its third quarter ended June 26, up 35 percent from the like quarter of 2010 and up 4 percent from its second quarter, the company said July 20.

Revenue for the maker of wireless chips and licensor of its technology came in at $3.62 billion, up 34 percent from the prior year’s like quarter, but off 6 percent from the second quarter.

Despite the results that generally beat Wall Street analysts’ projections, its stock fell nearly 3 percent to $55.83 in extended trading on the Nasdaq exchange July 20.

Chief Executive Officer Paul Jacobs said the company performed well across all key guidance metrics. He continues to see healthy prospects through the end of this calendar year with an 18 percent gain in CDMA-based device shipments.

In the past quarter, Qualcomm completed a $3 billion purchase of Atheros Communications, a deal that should drive future growth as well as the continued strong sale of smartphones and other wireless devices, Jacobs said.

For its fourth quarter, Qualcomm forecast revenue ranging from $3.86 billion to $4.16 billion, and per share diluted net earnings from 60 to 65 cents.

The company raised its expected full 2011 fiscal year guidance on revenue to $14.7 billion to $15 billion from the earlier range of $14.1 billion to $14.7 billion. But it cut back on the forecasted diluted net earnings to $2.50 to $2.55 per share, from its earlier projection of $2.51 to $2.59.

— Mike Allen