Qualcomm’s net income up 14% on chip demand

Qualcomm Inc. posted a 14% increase in fiscal fourth-quarter profit, buoyed by strong sales of its chips that power mobile phones.

The San Diego-based company earned $614 million, or 36 cents a share, up from $538 million, or 32 cents a share, a year earlier. Revenue jumped 28% to $2 billion in the quarter ended Sept. 24.

Excluding a loss of 5 cents a share for stock-based compensation and a loss of 1 cent a share for tax adjustments, Qualcomm earned 42 cents a share. On that basis, analysts polled by Thomson Financial had projected a profit of 41 cents a share.

Qualcomm’s stock price has suffered amid concerns about the company’s relationship with No. 1 handset maker Nokia Corp., its largest licensee. Some industry watchers say negotiations to renew a contract that expires in April may be contentious. Qualcomm said it would work with Nokia but noted that little progress had been made.

Its shares rose 63 cents to $36.36 in regular trading before losing 5 cents after hours.