Qualcomm posts 22% jump in earnings

Qualcomm posted a 22% increase in fiscal second-quarter profits on strong sales of its chips that run mobile phones, an Associated Press report said.

The Associated Press report said the wireless equipment maker earned $726 million during the three-month period ended April 1, compared to a profit of $593 million in the same period last year.

Revenue jumped 21% to $2.22 billion from $1.83 billion last year, the report said.

Qualcomm also raised its annual revenue and profit forecasts, the report said.

It now expects to earn between $1.84 and $1.88 a share, excluding certain charges, compared to analyst estimates of $1.85 a share. It expects revenue between $8.4 billion and $8.7 billion, compared to analyst estimates of $8.67 billion.

The profit estimate excludes between $0.04 and $0.05 a share that Qualcomm believes it will be owed by Nokia, the world's largest handset maker, in the third quarter, the report said.
The two companies are embroiled in a high-stakes dispute over royalty payments, it added.

The report further said the firm projected revenues of $2.2 billion to $2.3 billion, slightly higher than analyst estimates of $2.19 billion.