Qualcomm looks for 3G boost
Brewing up a storm
Qualcomm Inc has posted net income of $43.9m for the second quarter to March 31, down from $109.7m on revenue of $696.1m, down from $717.1m. At the mid-term stage net income was $183.2m, up from a loss of $309.5m on revenue up 1.6% at $1.39bn.
It said it expects rising sales of chipsets for mobile phones, boosted by the roll-out of 3G networks, to give it revenue growth of 4% to 8% this year. The CDMA technology vendor said that after a slow first half, third-quarter revenue will rise 3% to 6% as shipments of its mobile station modem (MTM) phone chips rise from 14 million in the second quarter to 15 to 16 million in the current three months.
In sharp contrast to the gloom surrounding mobile operators in Europe, chairman and CEO Dr Irwin Jacobs was optimistic about the immediate future, and said he expects further positive momentum in the second half as additional 3G CDMA networks are deployed with a wide variety of color screen handsets, many utilizing multimedia and position location capabilities as well as new Binary Run-time Environment for wireless (Brew)-enabled applications.
The San Diego, California-based company attributes lower second-quarter revenue to lower royalties and unit shipments of MTM chips although this was partly offset by higher software development and services revenue related to the Brew platform and higher average selling prices of its 3G phone chips.
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