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Qualcomm Shares Rise Sharply Q1 Profit Beats Estimates (QCOM)

Shares of Qualcomm Inc. (NASDAQ: QCOM), a designer, manufacturer and marketer of digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other technologies, have risen sharply in pre-market trading today after the company reported better-than-expected first-quarter profit.

Qualcomm also announced that William Keitel, its CFO, plans to retire. Keitel will step down from his position on March 11. He will be replaced by George Davis, who is currently the CFO of Applied Materials Inc. (NASDAQ: AMAT).

For the first quarter ended December30, 2012, the San Diego, California-based company reported revenue of $6.02 billion, up 29% over the same period in the previous year. Operating income for the quarter rose 35% on a year-over-year basis to $2.09 billion. Net income for the quarter rose 36% to $1.91 billion. Diluted earnings per share for the quarter were $1.09, up 35% over the same period in the previous year.

On a non-GAAP basis, fourth-quarter net income was $2.20 billion, up 32% over the same period in the previous year. Diluted earnings per share for the quarter were $1.26, up 30% over the same period in the previous year.

Paul E. Jacobs, Chairman and CEO of Qualcomm, said that the company is pleased to report record quarterly revenues, non-GAAP earnings per share and MSM chip shipments, driven by the growing global demand for smartphones and the company’s industry-leading portfolio of 3G/LTE chipsets. Jacobs said that the company’s broad licensing partnerships and extensive chipset roadmap, including its recently announced best-in-class Qualcomm Snapdragon 800 and 600 processors, position the company well for strong growth.

QCOM shares have risen sharply in pre-market trading after investors digested the company’s robust first-quarter results. At last check, QCOM shares were trading 6.25% higher at $67.50.


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