Qualcomm Narrowly Beats Earnings Forecast
Qualcomm reported earnings of 43 cents a share, just above analysts' estimates, but results were mixed as quarterly sales came in at $2.02 billion, below forecasts.
The San Diego-based wireless equipment maker was expected to post earnings of 42 cents a share on sales of $2.07 billion, according to a consensus estimate compiled by Thomson Financial.
Looking ahead, Qualcomm issued fiscal 2007 earnings guidance of $1.72 to $1.77 a share, compared with the consensus estimate of $1.78.
Qualcomm shares initially rose 2.4% to $39.53, from its close of $38.62 on Nasdaq after the company reported results.
Qualcomm faces several legal disputes including a flurry of lawsuits over patent infringement involving rival chipmaker Broadcom, and regulatory complaints in Europe from other rivals.
Qualcomm is also in negotiations with Nokia, the world's biggest cell phone maker, over a technology license pact that expires in April.
Qualcomm is the biggest supplier of chips based on CDMA, a wireless technology used in the United States and other countries. It also sells technology licenses and chips based on
W-CDMA, a mobile phone standard gaining popularity in Europe.