Qualcomm soars to record $1.17b profit
Qualcomm comfortably beat analyst’s forecasts for its fiscal 1Q11, with record profits driven by rising sales of its MSM chip line.
Net income grew 39% to $1.17 billion (€851m) year-on-year in the calendar 4Q10, as revenues grew 25% to $3.35 billion on the back of higher MSM chipset shipments to meet growing global demand for smartphones.
The firm shipped 118 million CDMA MSM chips in the most recent period - up 28% year-on-year -, after compatible smartphone shipments hit 165 million to 169 million units.
Chief Paul Jacobs said the firm benefitted from growing sales of all data-centric devices “across an expanding number of regions and price points” during the quarter, stating that the firm believes it is “uniquely positioned to benefit from these industry trends.”
Qualcomm’s record results came despite its QSI division being hit by restructuring charges over the closure of its FLO-TV business of $64 million.
The firm plans to completely shutter the business by end March, and predicts further charges of $300 million to $375 million as a result, which will be booked in the current fiscal year.
Earnings per share of 71 cents far exceeded analyst’s forecast of 59 cents, according to a Bloomberg poll.
Qualcomm predicts revenues will hit $3.45 billion to $3.75 billion in fiscal 2Q11, up 30% to 41% year-on-year, with earnings-per-share tipped to hit 46 cents – an increase of 9% to 17%.