Qualcomm Reports Higher Profits for 4Q, Year
Qualcomm Inc. said its fiscal fourth-quarter net income rose 22% to $1.06 billion, or 62 cents per share, from $865 million, or 53 cents, a year ago.
Revenue increased 39% to $4.12 billion for the quarter ended Sept. 25, the maker of trucking communication devices and wireless chips said in a statement.
The company said it shipped 127 million units of its CDMA-based mobile station modem devices in the quarter, with sales rising 38% to $39 billion.
In the same period last year it shipped 111 million of units and generated sales of $28 million on the mobile station devices.
CDMA, or code division multiple access, allows several users to share a communications channel, or bandwidth.
For fiscal year 2011, Qualcomm said its earnings climbed 31% to $4.26 billion, or $2.52 per share, on revenue of $15 billion, up 36% from the previous year.
CEO Paul Jacobs said the company delivered record revenue, earnings and MSM chipset shipments this year, driven by the popularity of smartphones and continued adoption of 3G technology.
Maybe this is why QCOM stock has gone up about $7 in the last week.
ReplyDeleteAdditional Note: Qualcomm is the mobile chip provider for Apple's iPhone 4s. They sell their chip set to Apple somewhere between $14-$15. Early estimates predict that 81 million iPhone 4s' will be sold in 2012. Estimated QCOM revenue from iPhone 4s ~ $1.1 billion.
They are successful players in a growing segment of the chip industry. But demand for smartphones has to peak at some point--what do they do then to keep increasing EPS quarter over quarter?
ReplyDeleteFor the near future, Qualcomm should thrive off of its leading position in smartphones chips and tablet chips. Beyond that, they need to realize the potential for growth in "smart TVs".
ReplyDeleteThe changes in computing and electronics can present Qualcomm with prosperous opportunities. The hardware continues to change, but the demand for electronics to communicate, or "talk" to one another, seems to be growing. This plays to Qualcomm strengths.