Phone Chips Help Boost Qualcomm Profit

Qualcomm Inc. (QCOM) Wednesday posted a net quarterly profit on increased revenue, helped by demand for its advanced phone chips that allow users to surf the Web at high speed.

The company, which sells mobile phone chips and licenses wireless technology, also forecast earnings, excluding investments, for the current quarter in line with analysts' expectations.

San Diego-based Qualcomm reported a net profit of $191.7 million, or 23 cents a diluted share for its fiscal third quarter, compared with a loss of $13.8 million, or 2 cents a share a year ago.

On a proforma basis, excluding investments and amortization of goodwill, the company posted a profit of 33 cents, compared with its expectation of 30 cents to 31 cents.

Revenue in the quarter was $921.6 million, compared with $770.9 million a year ago.

Qualcomm said it expects earnings per share, excluding investments, of about 27 cents to 29 cents in the fiscal fourth-quarter as revenue increases about 2 percent to 6 percent. Analysts on average expected earnings of 29 cents on revenue of $871.4 million, according to Reuters Research, a unit of Reuters Group Plc.

For the full year, Qualcomm raised its earnings target, excluding investments, to a range of $1.40 to $1.42 on revenue growth of 31 percent to 33 percent. It previously forecast a range of $1.38 to $1.41 with revenue growing 30 percent to 33 percent.