Qualcomm Reports Great Earnings; Set to Ride the Mobile Wave

Qualcomm reported its earnings for Q3 FY12 on July 18. It has had a pretty good quarter with revenues jumping 28% year-over-year to $4.63 billion. Its operating profit was up 24% to $1.38 billion, but the operating cash flow declined to $922 million. It ended the quarter with around $26.5 billion in cash, cash equivalents and marketable securities.

Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, said:

“Adoption of 3G and 3G/4G technologies continues around the world, driving strong year-over-year growth in our chipset and licensing businesses this quarte. Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business.”

We expect Qualcomm’s chipset shipments to benefit greatly from the boom in the mobile and tablet segments of the processor market.

The launch of Windows 8 tablets should also boost Qualcomm’s earnings, given its good relations with Microsoft. The increase in demand from emerging markets should lead to an uptrend in 3G and 4G chipset shipments. Snapdragon should account for a major portion of Qualcomm’s sales growth going forward.

Having Apple as a major client with the iPhone and iPad should also help its earnings in the coming quarters.

via Qualcomm – SEC

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