14 DAY TRIAL // Like practically every other company in the IT industry, Qualcomm came out and published its financial results for the past quarter. The last quarter to conclude, in its case, was the third one of fiscal year 2010, on June 27 to be exact, and appears to have ended on a positive note, thanks to record MSM chipset shipments. All in all, marketing performance supposedly exceeded prior expectations, with net income showing a year-over-year rise, even as revenues failed to actually match those of the same period of 2009.
Qualcomm's operating income fell by 11 percent on-year but rose 2% compared to the previous quarter. Also, revenues amounted to 2.71 billion, which is 2% more than what was attained during Q2 but 2% less than during the third quarter of last year. Furthermore, the effective tax rate for the quarter was of 21 percent. As for the net income itself, it totaled $767 million, down 1% sequentially but up 4 percent on-year.
“Our financial performance this quarter exceeded our prior expectations, driven by record MSM chipset shipments, favorable product mix and continued strong demand for 3G devices around the world," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “Looking forward, we continue to see healthy CDMA-based device growth of approximately 23 percent in calendar year 2010, and are raising both our revenue and earnings guidance for the fiscal year.”
"The shipments were stronger than we anticipated and the average selling price held up better than some had feared," said Bill Kreher, an analyst at Edward Jones, when speaking of the performance of high-end phones, according to a report.
These developments can be seen as a welcome change compared to the previous two quarters, when investors weren't particularly impressed with the sharp drop in phone prices and cuts into royalty payments.