Qualcomm reports positive financial results
Qualcomm has raised its 2013 outlook after beating Wall Street expectations to establish a lead in 4G wireless technologies.
The US smartphone chipmaker has benefitted greatly from the increasing usage of smartphones, with the company reporting quarterly revenues of $6.02 billion, up by 29% from a year ago, and ahead of expectations of $5.9 billion.
Shares in Qualcomm also rose by 6.5% following the news in the US, and earnings per share up by 35% according to Bloomberg data.
Qualcomm has benefitted greatly from the booming wireless business, and are able to claim royalties from any company which licences 2G, 3G or 4G technologies. The company further raised its guidance for the fiscal year by $400 million.
Steve Mollenkopf, chief executive at Qualcomm, told the Financial Times that the demand for smartphones had not subsided despite macroeconomic uncertainty globally, as a further reason for Qualcomm’s growth.
According to market watchers, Qualcomm has had a two year advantage over competitors, particularly with the integration of its wireless standards to include 4G LTE within its chipsets.
Shipments of Qualcomm multimode chipsets, which include LTE standards, were up 90% from the previous quarter.
The company’s chief executive Paul Jacobs also noted increasing growth in China, with smartphone sales up year on year to 115% in Q3 2012.