Feeds

Global 3G boost for Qualcomm

Nextel falls into line

  • alert
  • submit to reddit

Security for virtualized datacentres

The global roll-out of 3G networks continues to boost Qualcomm's bottom line. The San Diego company closed its first quarter of fiscal year 2005 with a net income of $513m on earnings of $1.39bn.

Qualcomm reckons that the next year will see 55 million 3G phones ship, each one bearing a royalty gift back to San Diego, alongside 168 million CDMA phones. WCDMA 3G accounted for 32 per cent of royalties in the most recent quarter, up from 12 per cent a year ago. Royalties account for $412m, or just about a third of Qualcomm's gross revenues. CEO Irwin Jacobs sounded bullish on the prospect of the recent mega-mergers at home. He told the FT that Cingular's 3G investments would prompt Verizon to speed up, but Qualcomm's best news was delivered on a plate when Nextel, Motorola's biggest single customer, announced it was to merge with Sprint.

R&D increased sharply to $228m. Qualcomm has snapped up a UI company Trigenix and a next generation display company Iridigm in recent months.

Although year on year quarterly profits were up 46 per cent, shares fell after Qualcomm said its next quarter would gross between $1.35 and $1.45. Wall Street analysts had expected to see something closer to $1.49. Long-term investors won't be grumbling too much.

A court ruled this week that a Sunnyvale company, Maxim Integrated Products, had clearly violated its patents but decided that Qualcomm hadn't suffered damages as a result. Maxim had countersued Qualcomm on antitrust grounds, and claimed this week that it can still bring its chipsets to market. The Judge sent both legal teams away to agree on a settlement. ®

Related stories

Rosy future for Sprint-Nextel marriage
Qualcomm seeks markets with bold TV network move
Super 3G group flexes its muscles
China homespun 3G unravels in trials
Cellular Nation looks perky again

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.