Feeds

Buoyant Qualcomm proves R&D pays

Billion dollar quarter

  • alert
  • submit to reddit

The Power of One Infographic

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

The Essential Guide to IT Transformation

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.