Feeds

Buoyant Qualcomm proves R&D pays

Billion dollar quarter

  • alert
  • submit to reddit

Security for virtualized datacentres

Qualcomm turned in profits of $352 million on turnover of $1.2 billion in the last quarter, citing higher than expected demand for its CDMA phone chipsets. Profits are up 13 per cent year on year, despite Qualcomm increasing R&D investment by a third.

Qualcomm produces CDMA chipsets for the US and Korean markets, and WCDMA 3G for the rest of the world. But Qualcomm also gets a revenue slice from rival WCDMA manufacturers, and licensing revenue was up $111 million, or 38 per cent, year on year. Qualcomm licensees sold 31 million handsets in the past quarter.

Contrary to some expectations, the arrival of real competition for its CDMA business from Nokia/Texas Instruments has seen the market boom and driven margins higher: Qualcomm cited "higher than expected average selling prices" in its press release.

In the SEC filing, Qualcomm says it doesn't expect this trend to last. It reckons 138-146 million CDMA phones to ship this year, and while the average selling price remained constant last year, it expects a seven per cent drop in 2004.

With a warchest of $1.7 billion in cash and $2 billion stock, Qualcomm has enviable resources to fuel further R&D investment. ®

Related Stories

TI counter-sues Qualcomm
Qualcomm lawyers defy Nokia's rabbit cull
TI, Nokia gang up on Qualcomm
GSM heads for 50pc of US phones
GSM rebrands 3G service but claims victory over CDMA prematurely
China sees export potential in home grown 3G

Intelligent flash storage arrays

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.