Wireless technology company Qualcomm Inc. (QCOM) Wednesday reported a higher quarterly profit on growing demand for its technology but its outlook for the current quarter disappointed some investors.

Qualcomm, which develops CDMA (search) mobile phone technology that is dominant in the United States and parts of Asia, saw its shares fall about 5 percent after it said it expects its earnings to decline in its fiscal second quarter.

"It's a little disappointing. The guidance was a little light on their second quarter," said Deutsche Bank analyst Brian Modoff, who had expected second quarter earnings of 30 cents a share on revenue of $1.5 billion.

Qualcomm backed its guidance for the full year 2005 but said it expects second-quarter earnings, excluding that of its investment arm, of 25 cents to 27 cents a share on revenue of $1.35 billion to $1.45 billion.

Qualcomm shares traded down more than 5 percent at $38.85 on the Inet electronic trading system after closing at $41.07 in regular Nasdaq trade

It posted a profit of $513 million, or 30 cents a share, for its fiscal first quarter ended Dec. 26 compared with $352 million, or 21 cents a share, a year earlier. It said it earned 28 cents per share in the first quarter, excluding its Qualcomm Strategic Initiatives investment arm.

Revenue was $1.39 billion, up 15 percent from $1.2 billion a year ago.

Qualcomm, based in San Diego, forecast that 218 million to 228 million phones based on its technology would be shipped in 2005, including 168 million CDMA phones and 55 million phones based on W-CDMA (search), a technology popular in Europe.

Qualcomm said that for 2005, excluding the investment arm, it expects earnings of $1.16 to $1.20, per share on revenue of $5.8 billion to $6.3 billion.