While the quarter was a good one, Qualcomm’s shares dipped 8 percent in after-hours trading. The company released results after the markets closed. The continued migration worldwide from second-generation networks to 3G networks helped boost Qualcomm’s chip shipments to 93 million, a 35 percent increase from the same quarter a year ago. The company’s technology is particularly strong in 3G, or third-generation, wireless networks and devices such as smart phones, which can surf the Web and perform a host of complex tasks.
The better-than-expected results came from increased sales of chips used in cell phones, data cards and other wireless products. Net income for the quarter was $774 million, compared with a loss of $289 million for the same quarter last year, which was caused by a $748 million legal settlement Qualcomm paid to rival Broadcom. Revenue was up 9 percent from a year ago. Analysts had forecast earnings of 57 cents per share on revenue of $2.63 billion, excluding items. Qualcomm beat Wall Street’s expectations for earnings with a profit of 59 cents a share, excluding certain items, on revenue of $2.66 billion. Wireless chip giant Qualcomm posted strong earnings and revenue for the quarter ended March 31, but its shares slipped in after-hours trading in part because the San Diego company changed the way it reports a key piece of data closely watched by investors.
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