Qualcomm Announces Revenues of $2.5 Billion, up 3% YoY, Down 19% Sequentially

Qualcomm reported quarterly revenue of $2.52 billion, up 3 percent year-over-year and down 25 percent sequentially. Operating income came in at $745 million, down 2 percent year-over-year and 44 percent sequentially. Net income was $341 million, down 56 percent year-over-year and 61percent sequentially. Diluted earnings per share were $0.20, down 57 percent year-over-year and 62 percent sequentially.


Qualcomm noted that its revenues were at the high end of prior guidance and operating income exceeded prior guidance. However, net income and diluted EPS for the quarter were adversely impacted by other-than-temporary impairments to its marketable securities portfolio.


"Despite weak economic conditions, wireless subscribers continue to migrate from second-generation to third-generation CDMA networks around the world. Our first quarter revenues were at the high end of prior guidance and operating income exceeded our prior guidance driven primarily by the mix of higher-end chipsets, higher-priced data capable devices and improved expense management," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "I am particularly pleased to see healthy demand for 3G as CDMA-based device shipments in the September quarter were at the high end of our prior expectations and reflect more than 30 percent year-over-year growth. While our operating performance was strong, the distress in the global financial markets continued, resulting in additional impairments of our marketable securities portfolio."


"The CDMA inventory channel has contracted as we expected, and the business environment continues to remain uncertain. Reduced visibility in the marketplace makes it difficult to forecast future inventory levels or predict when a recovery will begin. As a result, while we continue to estimate healthy growth in the CDMA-device market, we have lowered our shipment estimate for calendar year 2009. Although we are not providing earnings per share guidance due to the volatility of financial markets and the impact it has had and may have on our investment portfolio and net income, we are providing revenue, operating income and our other standard guidance. Qualcomm is very fortunate to have a strong balance sheet and operating cash flows in these difficult times and we are committed to supporting our partners and driving the market forward."http://www.qualcomm.com