Qualcomm posts 2Q profit, gives tepid 3Q outlook

Apr 21, 2010 By ELLIOT SPAGAT , AP Business Writer
In this Jan. 8, 2010 file photo, Qualcomm President and CEO Paul Jacobs gives the keynote address at the International Consumer Electronics Show (CES) in Las Vegas. Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, raised its profit estimate for 2010 on Wednesday, April 21, 2010, as it reported second-quarter results that surpassed Wall Street's expectations. (AP Photo/Laura Rauch, File)

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, raised its earnings estimate for 2010 on Wednesday on solid second-quarter results. But its short-term outlook disappointed investors.

The company's chief executive, Paul Jacobs, said Qualcomm is poised to gain market share even as competition pushes chip prices lower. He said "positive momentum" in chip and licensing businesses led it to raise its 2010 forecast.

Nonetheless, shares of the company fell $3.43, or 8.1 percent, in extended trading Wednesday. Before the release of results, the stock closed down 66 cents, or 1.5 percent, at $42.63.

Qualcomm said it expected to earn 51 cents to 55 cents a share in its fiscal third quarter, excluding certain charges. Analysts polled by Thomson Reuters were projecting of 55 cents a share.

For the three-month period ending March 28, Qualcomm posted of $774 million, or 46 cents a share, compared with a loss of $289 million, or 18 cents a share, during the same period last year. Last year's loss was largely a result of a legal settlement with rival Corp.

The latest quarter included per-share charges of 6 cents for stock-based compensation, 5 cents for its strategic initiatives unit and 2 cents a share for tax items. Excluding those charges, Qualcomm's net income was 59 cents a share, 3 cents a share above analyst expectations.

Revenue rose 8 percent to $2.66 billion, largely in line with estimates.

Qualcomm raised the low end of its 2010 profit estimate to $1.71 a share from $1.56. It left its annual revenue estimate unchanged at $10.4 billion to $11 billion.

, based in San Diego, makes chips for phones and licenses its patented technologies to other companies. It makes much of its money from royalty payments.

Explore further: Record labels sue Pandora over older songs

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Qualcomm stock tumbles on cautious forecast

Jan 27, 2010

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, sounded a cautious note on the economy on Wednesday, saying a "subdued" recovery forced it to slightly dial ...

Qualcomm posts 2nd-qtr loss on legal settlement

Apr 27, 2009

(AP) -- Qualcomm Inc. posted a fiscal second-quarter loss Monday on a hefty payment to rival chip maker Broadcom Corp. to end legal disputes that spanned several continents.

TI 4Q profit, revenue soar on broad chip demand

Jan 25, 2010

(AP) -- Texas Instruments Inc. said Monday its fourth-quarter profit soared as factories that use its chips for a wide range of consumer gadgets and industrial products hummed straight through the typically ...

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

EA 1Q loss widens but results surpass expectations

Aug 04, 2009

(AP) -- Lower revenue from packaged video games amid a seasonal slump for the industry gave Electronic Arts Inc. a larger net loss in its fiscal first quarter. But investors cheered as its adjusted results ...

Recommended for you

Weibo IPO below expectations, raises $285.6 mn

16 hours ago

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

17 hours ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

17 hours ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

User comments : 0

More news stories

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Better thermal-imaging lens from waste sulfur

Sulfur left over from refining fossil fuels can be transformed into cheap, lightweight, plastic lenses for infrared devices, including night-vision goggles, a University of Arizona-led international team ...

Deadly human pathogen Cryptococcus fully sequenced

Within each strand of DNA lies the blueprint for building an organism, along with the keys to its evolution and survival. These genetic instructions can give valuable insight into why pathogens like Cryptococcus ne ...