Blog Post

Earnings: Qualcomm’s Q1 Profit Up 11 Percent; Nokia Uncertianity

Qualcomm Q1 climbed because of strong demand for chipsets and wireless technology. The company earned $593 million, up 11 percent from $531 million during the same period a year ago. Sales rose 34 percent to $1.83 billion from last year’s $1.37 billion.
Reuters: Analysts said investors were concerned about Qualcomm’s announcement that it is in talks with Nokia about extending a licensing agreement that expires on April 9, 2007. Company executives said on a call with analysts that they hoped to reach a deal with Nokia, the world’s biggest mobile phone maker, but could not be certain of success. Nokia and Qualcomm both hold multiple patents for cellphone technologies, and are often at loggerheads, including legal battles over patent infringement.
On MediaFlo, from the conference call transcript: “While we continue to work with individual broadcasters to clear Channel 55, the United States Congress approved a statutory definitive end date for the nation’s television broadcasters to transition to digital television spectrum, which will clear significant spectrum in the 700-MHz band. This spectrum will then be used not only to enable new broadcast multimedia services like those offered by QUALCOMM’s MediaFLO USA subsidiary, but also to support public safety communications and provide additional broadband wireless access to urban and rural areas. This spectrum provides us with new opportunities to innovate.”