Qualcomm Inc.'s (QCOM) fiscal third-quarter profit rose 17% as
the chip maker continued to see strong demand for its smartphone
technology.
But the company moderated its growth estimates for the calendar
year, said Chief Executive Paul E. Jacobs, who added that the back
end of the year is expected to be stronger as new devices are
launched for the holiday season.
For the full fiscal year, the San Diego semiconductor company
sees results coming in at the lower end of its previous outlook. It
now expects earnings of $3.61 to $3.67 a share on revenue of $18.7
billion to $19.1 billion. The company had previously predicted
earnings of $3.61 to $3.76 a share on revenue of $18.7 billion to
$19.7 billion.
For the fourth quarter, the company expects an adjusted
per-share profit of 78 cents to 84 cents on $4.45 billion to $4.85
billion in revenue. Analysts polled by Thomson Reuters had recently
projected earnings of 89 cents a share on revenue of roughly $4.9
billion.
Qualcomm, which helped popularize a technology used in many
cellphones called code-division multiple access, or CDMA, has been
one of the biggest beneficiaries of rising demand for smartphones
and other mobile devices.
But the company had warned that the latest quarter's growth was
affected by constraints on the supply of chips based on a new
manufacturing process; the company relies heavily on the limited
services of Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW),
and has boosted spending to help other manufacturers produce the
same chips.
Supply issues, which are driving some of the company's customers
to seek out alternatives, are expected to limit revenue upside
through the end of September.
Qualcomm makes much of its profit by licensing patents based on
its 3G technology. In June, the company unveiled plans to form a
unit to separate its chip business from its licensing operations,
in an effort to shelter its intellectual-property portfolio.
For the quarter ended June 24, Qualcomm reported a profit of
$1.21 billion, or 69 cents a share, up from $1.04 billion, or 61
cents a share, a year earlier. Excluding acquisition-related costs,
stock-based compensation and other impacts, per-share earnings rose
to 85 cents from 73 cents.
Revenue jumped 28% to $4.63 billion.
The company's April guidance had predicted adjusted per-share
earnings of 83 cents to 89 cents on $4.45 billion to $4.85 billion
in revenue.
Shares edged down 1.8% at $55.03 after hours. Through
Wednesday's close, the stock was up 2.5% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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