Qualcomm posts slightly lower 3rd-quarter profit, revenue

Qualcomm 3Q profit edges lower

NEW YORK — Qualcomm Inc. posted a slight decrease in its fiscal third-quarter profit Wednesday, though CEO Paul Jacobs said the chip maker had a strong quarter and healthy demand — a sign of recovery in the wireless market.

Nonetheless, the company’s sales outlook for the current quarter seemed to disappoint investors, who sent shares lower in after-hours trading.

For the March-June period, San Diego-based Qualcomm earned $737 million, or 44 cents per share. This is down 1.5 percent from $748 million, or 45 cents per share, in the same period a year earlier.

Adjusted earnings were 54 cents per share, slightly ahead of Wall Street’s expectations.

Revenue edged marginally lower to $2.75 billion from $2.76 billion.

Analysts, on average, had expected a profit of 52 cents per share on sales of $2.73 billion, according to a poll by Thomson Reuters.

Qualcomm makes chips for cell phones and licenses its technology to chip and handset makers. These royalties on patented technologies account for most of its profit.

Jacobs, who also serves as chairman, said the quarter saw strong licensing and royalty revenue, stemming from healthy demand in the previous quarter. Shipments of mobile chip sets were also strong, pointing to a recovery in the mobile phone market.

“I’m very pleased with our strong operating performance in this uncertain economic environment,” Jacobs said in a conference call with analysts.

Despite the economic turmoil, Qualcomm said it expects a healthy fourth quarter, and raised its 2009 revenue forecast.

For the current quarter, the company expects revenue in the range of $2.55 billion to $2.75 billion, the midpoint of which is below analysts’ expectations of $2.71 billion.

For the full year, Qualcomm expects revenue between $10.25 billion and $10.45 billion. This is an increase from its earlier outlook of $9.85 billion to $10.25 billion. Analysts expect $10.39 billion.

BMO Capital Markets analyst Tim Long called the results and forecast solid and reiterated an “Outperform” rating on Qualcomm’s shares.

Shares fell $2.45, or 5.1 percent, to $46 in after-hours trading. The stock had closed up 47 cents at $48.45 in the regular session.