Qualcomm posts 2Q profit on revenue gains, raises profit expectations for 2010

Qualcomm posts 2Q profit, raises 2010 expectations

SAN DIEGO — Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, raised its profit estimate for 2010 on Wednesday as it reported second-quarter results that surpassed Wall Street’s expectations.

The company’s chief executive, Paul Jacobs, said that Qualcomm is poised to gain market share even as competition pushes chip prices lower.

Nonetheless, shares of the company fell $3.21, or 7.5 percent, in extended trading Wednesday. Before the release of results, the stock closed down 66 cents, or 1.5 percent, at $42.63.

Qualcomm posted net income of $774 million, or 46 cents a share, during the three-month period ending March 28. That compares with a loss of $289 million, or 18 cents a share, during the same period last year. Last year’s loss was largely a result of a legal settlement.

Excluding special items, net income was 59 cents per share. Analysts surveyed by Thomson Reuters had expected earnings of 56 cents per share.

Revenue rose 8 percent to $2.66 billion, largely in line with estimates.

Qualcomm raised the low end of its 2010 profit estimate to $1.71 a share from $1.56.