Wednesday, June 11, 2008

Qualcomm Increases Q3 Financial Guidance

Qualcomm raised its financial guidance for its third fiscal quarter ending June 29, 2008. The company now anticipates third fiscal quarter Qualcomm pro forma revenues to be slightly above the high end of the prior guidance of approximately $2.5 to $2.7 billion. Q3 Qualcomm pro forma diluted earnings per share are expected to be approximately $0.54 to $0.55, compared to a prior estimate of approximately $0.50 to $0.52. Qualcomm said its updated guidance is based on the shipment of approximately 86 million Mobile Station Modem chips during the quarter as compared to our prior estimate of 85 to 88 million units.

"We are expecting another successful quarter driven by the continued global migration to 3G," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "Our updated guidance reflects greater than expected demand for our 1xEV-DO and HSPA chipsets as well as revenues from advanced 3G network upgrades. March quarter reports by our licensees indicate an increased mix of high-end devices driving a higher average selling price. In addition, we believe the CDMA inventory channel remains within the historical normal band.