San Diego Business Journal

Qualcomm Reports Soaring Profit, Revenue

Friday, February 3, 2012

Qualcomm Inc. reported Feb. 1 that its first-quarter net income increased 20 percent from the prior year’s first quarter to $1.4 billion, while its revenue ballooned 40 percent to $4.68 billion during the same period.

Thanks to better than expected sales for the quarter that ended Dec. 25, the company revised its fiscal 2012 forecast upward to $18.7 billion to $19.7 billion. In the prior fiscal year, revenue was $14.96 billion.

Projected annual net earnings per share were raised to $3.36 to $3.56, up from the initial forecast of $2.80 to $3.

Chairman and CEO Paul Jacobs said both revenue and profits hit all-time highs in the quarter and were driven by continued strong demand for smartphones around the world. The company’s Snapdragon chip sets are being included in many smartphones.

During the quarter, Qualcomm said it shipped out 156 million chip sets, up 32 percent from the prior year’s first quarter.

Like many other corporations, Qualcomm is sitting on a growing pile of cash and cash equivalents. At the end of the quarter, that stood at $22 billion, up from the end of September (its fourth quarter), when it was $20.9 billion. The company said it has $948 million remaining for a stock repurchase program. It also granted a 21.5 cents per share dividend Jan. 10 to investors.

Qualcomm shares are traded on Nasdaq under the ticker QCOM.

— Mike Allen