Qualcomm projects higher fiscal 2012 sales against analysts’ forecast
03 Nov 2011
Mobile phone chips maker Qualcomm has forecast higher fiscal 2012 sales than predicted by analysts, adding to evidence of robust demand for smartphones.
Sales for the year ending in September 2012 are expected to touch $18 billion to $19 billion, the San Diego-based company said yesterday in a statement. This is against an an average analyst estimate of $17.3 billion, according to Bloomberg data.
Most of the company's profit comes from licenses on technology used in so-called 3G phones, on which it is benefiting hugely with more consumers switching to the technology -- especially in developing countries. Rising smartphone use leads to increased growth in royalty revenue and sales of cellular radio chips and processors.
Qualcomm shares were up as much as $5.06, or 9.7 per cent, at $57.24 in extended trading after the report. The stock, which was up 5.4 per cent this year, had closed at $52.18 in New York.
Chief executive officer Paul Jacobs, said in an interview that while the forecasts topped analysts' predictions, they were not as high as Qualcomm initially set internally. The company revised projections on signs of global economic weakness, he said.
For the current quarter and holiday shopping season the company has expectations of sales rising 30 per cent to 42 per cent.
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