Qualcomm Raises Guidance for Q3 on Strong Demand for 3G Devices

Jun.11.09 | About: Qualcomm Inc. (QCOM)

Qualcomm (NASDAQ:QCOM) Thursday morning raised its guidance for its fiscal third quarter ending June 28, but cautioned that it sees Q4 chipset units declining sequentially, putting a damper on the upbeat outlook for the current quarter. The stock is poised to open lower.

  • For the quarter, the company now sees revenue of $2.67 billion to $2.77 billion, up from $2.4 billion to $2.6 billion.
  • Operating income is now expected to be $1.06 billion to $1.11 billion on a pro forma basis, up from $800 million to $900 million.
  • GAAP operating income is now forecast to be $830 million to $880 million, revised up from $550 million to $650 million.
  • CDMA Mobile Station Modem shipments are now seen at 94 million to 95 million units, up from 87 million to 92 million.
  • CDMA device shipments are now estimated at 109 million to 111 million , compared to a range of 107 million to 112 million previously.
  • CDMA device ASP is now seen at $191, down from $196.

In a statement, QCOM said that the better results reflect strong demand by 3G CDMA devices. “Our increased guidance reflects stronger than expected demand for more data-capable chipsets and increased licensing revenues driven in part by advanced 3G network upgrades,” CEO Paul Jacobs said. “While some chipset demand for developing markets has shifted to the fiscal fourth quarter and demand remains generally strong, due to the current economic environment we remain cautious and currently project a modest sequential decrease in chipset shipments.”

The company said it is not providing EPS guidance, due in part to uncertainty concerning on unrealized losses on marketable securities that could be recognized in the third quarter.

In pre-market trading Thursday, QCOM is off 82 cents, or 1.8%, to $45.25.

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