Qualcomm Shares Up on Earnings

Qualcomm Inc. on Thursday reported fiscal fourth-quarter earnings of 25 cents a share, beating analysts’ estimates by a cent, as licensing revenue more than compensated for lower phone shipments in South Korea.

Shares of Qualcomm rose sharply in after-hours trading after the earnings report to $68.63. The shares had closed at $62.81, up $1.31, on Nasdaq.

Qualcomm, whose CDMA patented wireless technology is becoming an industry standard, reported pro forma net income of $200.8 million for its fiscal fourth quarter ended Sept. 30, up 9.8% from $182.9 million, or 24 cents a share, in the year-ago period.

Analysts on average were expecting 24 cents per share, according to First Call/Thomson Financial.

Revenue fell 11% to $635 million due to lower sales of MSM integrated circuits to South Korea.

But Qualcomm said it was comfortable with analysts’ estimates that it would earn 28 cents per share in the fiscal first quarter and $1.29 a share for fiscal year 2001.

It forecast industrywide 2001 CDMA phone sales of 90 million units, but anticipated average phone prices falling by 20%. Earnings growth should be moderate in the first half but accelerate in the fiscal year’s last six months, it said, as the latest third-generation CDMA products gain popularity.

Qualcomm said it expected to ship some 14 million MSM integrated circuits during its first quarter of fiscal 2001, compared with 11 million units in the recently completed fourth quarter.

Qualcomm also said Thursday that it would delay a planned public stock offering for Spinco, its semiconductor unit, citing unfavorable market conditions.