Qualcomm's 2nd-Qtr Earnings Rise on Chip, Royalty Revenue
San Diego, April 18 (Bloomberg) -- Qualcomm Inc., which developed cell-phone technology used by 50 million people, reported a fiscal second-quarter profit, compared with a year- earlier loss, as revenue from chips and royalties increased.
Net income was $199.7 million, or 25 cents a share, compared with a loss of $42.6 million, or 7 cents, in the year-earlier period. Revenue in the quarter ended March 26 fell to $727.7 million from $932.4 million as Qualcomm sold two businesses.
Qualcomm developed the code division multiple access technology that provides more call capacity and faster Internet access than rival standards. The company has benefited as more wireless-service companies install network equipment using Qualcomm chips and consumers snap up CDMA phones. Qualcomm also gets royalties from companies that sell CDMA equipment.
Qualcomm was forecast to earn 24 cents a share, the average estimate of analysts polled by First Call/Thomson Financial. Some forecasts posted on Internet sites were as high as 27 cents a share. Qualcomm said it earned 26 cents a share excluding gains, charges, acquisition costs and revenue from the phone-making unit it sold.
Shares of San Diego-based Qualcomm fell 4 11/16 to 112 3/16 today. They've fallen 36 percent this year after surging 27-fold in 1999. The company reported earnings after the close of the Nasdaq Stock Market.
Results were restated to exclude two money-losing divisions Qualcomm sold in the last year: the wireless network-equipment business, which Qualcomm sold to Ericsson AB in May, and the phone- making division, which was sold to Kyocera Corp. in February.
Apr/18/2000 16:48 |
