Earnings: Qualcomm Q4 Results — Revenue Up 16 Percent

Qualcomm has released its revenue reports for the fourth quarter of 2006 (PDF). Revenues were $2.02 billion, up 16 percent year-on-year and one percent sequentially. Net income was $648 million, up 5 percent year-on-year and 6 percent sequentially. Dr. Paul E. Jacobs, CEO of Qualcomm, said in the release that “based on our current outlook for CDMA-based handset shipments, we are pleased to reaffirm our calendar year 2007 forecast which represents approximately 28% year-over-year growth.”
The conference call didn’t really mention any mobile content stuff except in relation to chipsets and 3G. I’m surprised there wasn’t more talk about MediaFLO. There was a lot of talk about the legal action Qualcomm is involved in against Nokia and Broadcom. What they refered to as sustained attacks by a small number of companies (Project Stockholm — Nokia, Ericsson, TI etc) and the case with Broadcom will cost them $200 million in legal fees in 2007. Qualcomm expects that to be offset by increased operational efficiencies, but you can’t really spin it as good news. There was also some talk that the proceedings weren’t just to reduce the license fees but to reduce the amount of R&D Qualcomm can do and license to their competitors, which is a bit of a stretch.
Transcript

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