SAN JOSE, Calif. – Qualcomm Inc. reported strong quarterly results and an upbeat outlook for the coming three months, a sign of a continued robust market for CDMA-based handsets.
The chip maker posted revenues of $3.62 billion for its third quarter ending June 26. That's up 34 percent from the same period a year ago and down six percent from the prior quarter. Net profits were $1.24 billion, up 32 percent from the prior year and down 14 percent sequentially.
Qualcomm shipped 120 million units of its CDMA-based Mobile Station Modem (MSM) shipments in the quarter, up 17 percent from last year and two percent from the prior quarter. Overall, the company estimates the industry shipped a total of 170-174 million CDMA devices—up 44 percent from last year's quarter--worth a total of about $36.4 billion or $209-215 per unit.
"We continue to see healthy growth in CDMA-based device shipments of approximately 18 percent in calendar year 2011," said Paul E. Jacobs, chief executive, speaking in a press statement.
Qualcomm raised its revenue and profit guidance for the next quarter based on its expectations of CDMA handset sales and sales of its recently completed acquisition of Atheros.
Qualcomm now expects revenues of $3.86 to $4.16 for the fall quarter, up 31 to 41 percent. Earnings per share may increase by 13 to 23 percent, it predicted.
The company expects to sell about 120 to 125 million MSM chip sets next quarter, up eight to 13 percent. It predicted the industry could sell $38 to $41 billion in CDMA handsets, an increase of 34 to 45 percent.
Qualcomm is on a tear, continuing to dominate the CDMA market where it has nearly a 95 percent share and moving beyond it into HSPA and LTE technology, said Will Strauss, principal of market watcher Forward Concepts (Tempe, Ariz.). The 18 percent growth rate is "easily twice the market growth rate for CDMA overall," said Strauss.
"The only fly in the ointment for Qualcomm is what could happen with HTC if there's an injunction—that could affect a whole lot of Qualcomm chips," said Strauss referring to a patent infringement case against Taiwan's leading handset maker that Apple brought to the International Trade Commission. The ITC case is pending; Qualcomm is a large supplier to HTC.
Qualcomm, CDMA, Handsets, HTC, Apple Qualcomm forecasts solid growth in CDMA
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