Qualcomm Report Increased 2005 Earnings

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Qualcomm Inc. reported revenues of $1.37 billion for its fiscal second quarter, which is up 12 percent from revenues of $1.2 billion during the second quarter of last year but down 2 percent sequentially.

Net income was $532 million, up 9 percent from $488 million during the same period last year. Diluted earnings per share were 31 cents, up 7 percent from 26 cents per share year-over-year. Operating cash flow was $821 million for the quarter. The company paid $230 million in cash dividends during the quarter and announced a 29-percent increase in quarterly dividends payable starting in the third quarter.

The company offered revised guidance for fiscal 2005 that reflects lower acceleration of W-CDMA handset sales. The company reduced its calendar year 2005 handset estimate by about 5 percent due to a slower ramp-up of W-CDMA technology in Western Europe and anticipated channel inventory adjustments in CDMA2000 especially in Latin American and Southeast Asia.

The company said, however, it expects increasing market share for its W-CDMA chipsets. During the quarter, Qualcomm's CDMA Technologies business segment shipped 37 million MSM phone chips worldwide, compared with 32 million units during the same period last year. The company's Technology Licensing division said W-CDMA royalties contributed about 32 percent of total revenues, compared with about 12 percent of royalties during the same period last year. Qualcomm Wireless Business Solutions shipped about 8,800 satellite-based systems and 13,800 terrestrial-based systems compared with 9,400 satellite-based and 1,800 terrestrial-based systems shipped in the second quarter of last year.

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