As part of Qualcomm’s fourth-quarter earnings today it reconfirmed that it will exit the current FLO TV business as it currently stands, and will incur restructuring charges of up to $175 million in 2011. It is evaluating whether to sell the broadcast TV service, or its associated spectrum, or find yet another exit.
Still, the San Diego-based company’s stock soared in after-hours based on a strong outlook that many analysts believe includes chip sales for a CDMA version of the iPhone next year.
Qualcomm’s fiscal fourth quarter net income totaled $865 million on revenues of $2.95 billion. Profits rose 8 percent, while revenues jumped 10 percent compared to the year-ago period. For the entire fiscal year, profits increased 104 percent year-over-year to $3.25 billion, and revenues increased 6 percent to $10.99 billion.
It forecast first-quarter revenues in the range of $3.05 billion to $3.35 billion to beat analysts’ expectations of $2.99 billion. It said full-year 2011 revenue would rise to a range of $12.4 billion to $13 billion from to also beat analyst forecasts.
The company expects to ship roughly 765 million CDMA chipsets worldwide next year, up 20 percent from the estimated 638 million in 2010 — mostly due to the rise in smartphone sales, like Android and Windows Phone 7.
The company’s stock rose 7 percent, or $3.28, to $48.97 a share.