Qualcomm Lowers Profit Estimate for Quarter
Qualcomm lowered its profit estimate for its fiscal first quarter, citing higher-than-expected legal costs and customer's deferred payment.
The wireless technology company is embroiled in legal and trade disputes with companies including Nokia and Broadcom , which challenge its licensing practices and fees.
Qualcomm, which makes money from royalties and from selling chipsets that run mobile phones, said it continues "to vigorously defend the legal attacks on our business model."
The San Diego-based company said it expects to earn from 35 to 36 cents a share during the three-month period ending Dec. 31, compared to its previous estimate of 35 to 37 cents a share. The revised estimate includes a loss of 1 cent a share from its strategic investments unit, compared with a loss of 2 cents a share in its previous projection. It also includes a charge of 5 cents a share for share-based compensation.
In addition to the legal expenses, Qualcomm said it has not received payment from the Pantech Group of South Korea.
Qualcomm said it expects first-quarter revenue on the high end of its previous estimate of $1.98 billion to $2.08 billion, saying chipset shipments were higher than anticipated.
In the fiscal first quarter of 2006, Qualcomm earned 36 cents a share and posted $1.74 billion in revenue.
The revised projections were announced after the close of trading on Thursday.