NEW YORK – Wireless technology company Qualcomm Inc. (QCOM) said Wednesday its fiscal third- quarter profit and revenue rose on improving demand for chips used in high-speed wireless telephones.
Its shares rose almost 3 percent in after-hours trading as it eased some investor concerns by setting a fourth-quarter target in line with Wall Street expectations.
"The numbers were good in the quarter and a little better than expected for the rest of the year," said Deutsche Bank analyst Brian Modoff, who noted that investors had expected weaker third and fourth quarters.
Qualcomm, which sells technology licenses and chips for mobile telephones, said its profit rose to $560 million, or 33 cents a share, from $486 million, or 29 cents a share a year earlier.
Revenue rose to $1.36 billion from $1.34 billion a year ago. Wall Street analysts had forecast earnings of 25 cents a share on revenue of $1.31 billion.
Qualcomm expects fourth-quarter earnings of 28 cents to 30 cents a share on revenue of $1.43 billion to $1.53 billion.
It also narrowed its guidance for fiscal 2005 with a forecast for earnings per share of $1.22 to $1.24 on revenue of $5.55 billion to $5.65 billion.
Qualcomm cut full-year estimates for phones based on W-CDMA (search) technology, which is emerging in Europe, to 45 million from 50 million citing demand concerns in Europe.
Qualcomm shares were traded at $37.10 on Inet after closing at $36.09 in regular Nasdaq trade.