Enter multiple symbols separated by commas

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.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Wisconsin Governor Scott Walker rides a motorcycle near Boone, Iowa in June.

    Media consultant Mark Macias offers up his advice for what Scott Walker needs to do to get America's attention.

  • Treasure hunter mel fisher and his team, circa 1985, off the Florida Keys, at discovery of a Spanish galleon sunk in 1622

    Shipwreck treasures hit the auction block

  • The end zone

    Sports are big business in this country. ESPN's Jemele Hill and Forbes Executive Editor Mike Ozanian discuss "Deflategate," NFL Commissioner Roger Goodell's battles as he deals with the NFL's future, and the fight for sports eyeballs and ratings.

U.S. Video