3 Comments

Summary:

Qualcomm (NSDQ: QCOM), which is benefiting from the evolution from 2G to 3G devices, said its first-quarter 2009 revenues were at the high e…

imageQualcomm (NSDQ: QCOM), which is benefiting from the evolution from 2G to 3G devices, said its first-quarter 2009 revenues were at the high end of its guidance, but net income for the quarter was adversely impacted by impairments and the economic environment. Q1 revenues totaled $2.52 billion, rising 3 percent compared to the year-ago quarter. Net income fell 56 percent to $341 million, or 20 cents a share, compared to the year-ago period. The company had expected revenues of up to $2.5 billion and earnings between 46 and 50 cents a share. The company also received $2.5 billion in October related to a new licensing agreement with Nokia (NYSE: NOK) and the settlement of a long-standing legal spat with them. Qualcomm’s CEO Paul E. Jacobs: “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.”

Release. Presentation. Call (1:45 PST).

Cash position: At the end of the period, Qualcomm had cash and cash equivalents of about $13.1 billion, compared to $11.3 billion at both the end of Q4 and the year-ago quarter. On Jan. 16, 2009, it announced a cash dividend of 16 cents a share payable on March 27 to shareholders of record at the close of business on Feb. 27. The global financial crisis has led the company to write-down its marketable securities by $388 million, or about 3 percent of the recorded values of its cash, cash equivalents and marketable securities. In addition, the company had net unrealized losses on marketable securities of $1.1 billion.

MediaFlo performance: The company’s QSI (Qualcomm Strategic Initiatives), which includes MediaFlo division, resulted in a loss of five cents a share and $102 million in operating expenses, during the quarter. Still, only a small amount of Qualcomm’s overall R&D budget went towards QSI. Of the $604 million spent, $24 million went to investments like MediaFlo.

Business Outlook: Because of the extreme economic volatility, Qualcomm said it will be providing some guidance, but not earnings per share. The company said Q2 revenues will range between $2.25 and $2.45 billion, which would represent a 6 to 14 percent decrease over the year ago period. The loss attributable to QSI will increase to 10 cents a share. The company also thought shipments of CDMA and WCDMA devices would increase to up to 116 to 121 million from 112 million in the year ago period.

  1. In a report published recently by the Gerson Lehrman Group the revenues from MediaFLO for AT&T were reported to be ver small. ( https://origin-www.glgroup.com/News/MediaFLO-not-a-Revenue-Flow-for-ATT-24263.html)

    However what is leading to such a large loss per share on this account is surprising.After all, we are taking about $2.6 Billion revenues from core business.

    Share
  2. Amitabh, this Current era of Recession every body really suffered and each business badly hit their revenues. Not only AT&T sales reduced but in europe many Telecommunication companies suffered a lot, especially Orange.

    Share
  3. Yeah its very good article. Definitely income effected by Economy. The country have good economy she earning good income. Which have bad economy she have less source of income. It is very good advice for earning profit from foreign currency. Yeah its very good guidance.

    Share

Comments have been disabled for this post