SAN FRANCISCOFabless chip vendor Qualcomm Inc. raised its fiscal 2009 revenue and operating income guidance Wednesday (July 22) after hitting its own revised sales target and beating analyst revenue expectations for the most recently concluded quarter.
Qualcomm (San Diego) also posted a profit in accordance with generally accepted accounting principles (GAAP) after reporting a loss in the prior quarter. But the low end of the company's guidance for the current quarter missed analyst expectations, and shares declined in after-hours trading.
Qualcomm said it now expects revenue for fiscal 2009 to be between $10.25 billion and $10.45 billion, up from a previous estimate of $9.85 billion to $10.25 billion. The new revenue target would represent a decrease of 6 to 8 percent compared with fiscal 2008, the company said.
Qualcomm boosted its operating income estimate for the fiscal year to between $3.30 billion and $3.40 billion, which would represent a decrease of 26 to 28 percent compared to fiscal 2008.
For its fiscal third quarter, ended June 28, Qualcomm posted revenue of $2.75 billion, up from $2.46 billion in the previous quarter and down slightly from $2.76 billion in the same period of 2008, the company said.
Qualcomm's revenue for the quarter was in line with revised guidance the company issued last month that called for sales to be between $2.67 billion and $2.77 billion. Revenue beat consensus analyst expectations of $2.73 billion, according to Yahoo Finance.
"Our financial results reflect a record quarter for MSM chipset shipments, strong licensing and royalty revenues based on healthy end market demand in the March quarter and a 5 percent year-over-year reduction in combined R&D and SG&A expenses," said Paul E. Jacobs, Qualcomm chairman and CEO, in a statement.
Fiscal third quarter GAAP net income was $737 million, Qualcomm said, down 1.5 percent from $748 million in the third quarter of fiscal 2008, but an improvement from the company's fiscal 2009 second quarter loss of $289 million.
Qualcomm's second quarter 2009 results were skewed by a $748 million litigation settlement charge related to a settlement and patent agreement with Broadcom Corp.
GAAP net income equated to 44 cents per diluted share, compared to 45 cents per share in year-ago quarter and a loss per diluted share of 18 cents in the prior quarter, Qualcomm said.
On a non-GAAP basis, excluding charges, Qualcomm posted a fiscal third quarter net income of $903 million, compared to $915 million in the year-ago quarter and a net loss of $46 million in the prior quarter, Qualcomm said.
Qualcomm said it expects revenue for the fiscal fourth quarter to be between $2.55 billion and $2.75 billion, a decrease of 17 to 23 percent compared to the fourth quarter of fiscal 2008. Consensus analyst expectations had pegged Qualcomm's fiscal fourth quarter revenue at $2.71 billion, according to Yahoo Finance.
"Despite the global economic uncertainty, we anticipate another strong quarter for our chipset shipments in the fourth fiscal quarter," Jacobs said. "We believe the CDMA inventory channel has largely stabilized, yet remains near historically low levels consistent with our prior forecast."