68.7 F
San Diego
Sunday, Apr 21, 2024

Qualcomm Ends Fiscal Year on a Positive Note

Qualcomm Inc. closed the its 2005 fiscal year with $2.1 billion in net income, a 25 percent increase from 2004, fueled by worldwide sales of high-speed cell phones.

In a conference call Nov. 2, Chief Executive Officer Paul Jacobs credited the growth to a 30 percent boost in shipments of phones using Qualcomm’s much-heralded Code Division Multiple Access technology, which allows cell phones to transmit and receive larger amounts of data.

The San Diego-based tech giant posted annual revenues of $5.6 billion, up 16 percent from the previous fiscal year.

Annual earnings per share were $1.26, a 22 percent increase from fiscal 2004.

Qualcomm’s fourth-quarter revenue was $1.56 billion, a 40 percent increase from last year. Quarterly income was $538 million, a 37 percent increase.

Quarterly earnings per share were 32 cents, up 39 percent from 2004, but a dip of 3 percent from last quarter.

The company increased its $1 billion annual research and development expenses by 40 percent in an effort to develop lower-cost phones, wireless Internet technology and integrated circuit products.

The report sent the company’s stock up 9 percent, or more than $3, in early trading Nov. 3.

Though Qualcomm stock hit a 52-week high in October, its price fell after six technology companies filed complaints in late October with the European Commission alleging anti-competitive conduct. Broadcom Corp., Ericsson, NEC Corp., Nokia Corp., Panasonic Mobile Communications Co. and Texas Instruments Inc. have asked the European Union to investigate and stop alleged anti-competitive conduct in the licensing of patents for a new generation of cell phones and related devices.

During a conference call with analysts, Jacobs said Qualcomm planned to “vigorously defend against any claim of unlawful conduct.”

But analysts at Morgan Stanley did not expect Qualcomm’s stock to outperform in upcoming quarters, because of the uncertainty caused by the claim.

The company trades on the Nasdaq under the symbol QCOM.


Featured Articles


Related Articles