Shares of Qualcomm Inc. (Nasdaq: QCOM), a leading provider of wireless phone technology, said Tuesday it expects to meet or exceed expectations for its third quarter.
Qualcomm slipped 2 3/4 to 106 in early trading.
Not so coincidently, Qualcomm issued the statement after the Wall Street Journal's "Heard on the Street" column said the company was sending mixed signals about the Korean phone market. The Journal reported that Qualcomm's terrific quarter corresponded with a bubble in the Korean domestic cellular-phone market.
Qualcomm just so happened to report strong second quarter results along with that bubble. The company isn't saying how much the Korean burst contributed to its quarter.
In its latest statement, the company said demand for its Code Division Multiple Access (CDMA) chips and wireless phones that use the chips is stronger than the previous quarter.
"We are pleased that CDMA networks have grown to over 30 million subscribers in 27 nations," said operations chief Richard Sulpizio in a prepared release. "This rapid growth has led to an increase in demand for CDMA products as reflected in the increased product shipments by ourselves and our licensees."
First Call Corp. is expecting earnings of 59 cents a share for the quarter, according to a survey of 13 analysts. Results for the quarter are expected the week of July 21.
Qualcomm shares had climbed steadily since February, with shares hitting a snag on Monday, dropping 3 1/4 points to 104 3/4.
For its second quarter, Qualcomm earned 41 cents a share on sales of $932 million after adjusting for a two-for-one stock split.