Qualcomm quarterly profit rises, but shares fall
By Reuters
news.com.com
Story last modified Wed Jul 19 15:17:41 PDT 2006
Wireless chip developer Qualcomm's fiscal third-quarter earnings and revenue rose, the company said on Wednesday, but investors dumped its shares in after-hours trade.
The provider of technology licenses and chips for cell phones said its net income for the quarter ending June 25 rose 15 percent from the year-ago quarter to $643 million, amounting to 37 cents a share, while revenue rose 44 percent to $1.95 billion.
Analysts on average expected earnings of 37 cents a share on a GAAP basis, 42 cents a share excluding items such as stock based compensation, and revenue of $1.95 billion, according to Reuters Estimates.
Shares in Qualcomm dropped 5.7 percent to $34.64, down from a close of $36.73 on the Nasdaq.
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Qualcomm dominates the market for chips based on CDMA, a cell phone technology used in the United States and other parts of the world. It also sells technology licenses and chips for W-CDMA, a high-speed wireless standard popular in Europe.
In the same quarter a year earlier, Qualcomm reported a profit of 33 cents per share and revenue of $1.36 billion.
Its shares fell to around $32.66 in after-hours trade on the Inet electronic brokerage system after closing at $36.73 on Nasdaq.
The company's shares have fallen about 15 percent so far this year, with recent declines stemming from concerns arising from a decision by Nokia to pull back from CDMA. The Philadelphia Stock Exchange index of semiconductor stocks, SOXX, has fallen around 14 percent in the same time frame. |
