Qualcomm posts higher profits, but cuts 2009 forecast

Qualcomm posted its fourth quarter and fiscal 2008 results, and the company had higher revenues and net incomes both for the quarter and the year in total. However, it reduced its forecast for CDMA devices in 2009.

For the fourth quarter the company had net income of $1.06 billion, up 16 percent year-on-year and sequentially, and had revenues of $3.33 billion, up 44 percent from the fourth quarter last year and up 21 percent sequentially. For the fiscal year in total, the chip-maker had net income of $3.74 billion, up 10 percent year-on-year, and revenues of $11.13 billion, up 25 percent from last year.

However, because of the credit crisis and worsening macroeconomic conditions, the company expects lower growth in 2009. "While we are estimating strong growth for CDMA-based devices in calendar year 2009, driven by a shift to emerging markets, this growth is meaningfully less than we would have forecast just a few weeks ago," CEO Paul Jacobs said.

The company also noted the positive impact of the $2.5 billion non-refundable payment related to new license and settlement agreements it received from Nokia in October. "Consideration provided to us under the new license agreement with Nokia included, among other things, a non-refundable up-front payment of $2.5 billion, ongoing royalties and the assignment of patents that we recorded in intangible assets in the amount of $1.8 billion," the company said.

For more:
- see this release

[1]Related Articles:
Qualcomm [2], Nokia reach new patent agreement, end years of bitter disputes
Qualcomm [3] raises forecasts on 3G sales

[1]