Mobile phone chipmaker Qualcomm reported fiscal third-quarter earnings 20 percent below results from last year. The company posted third-quarter pro forma earnings of $268 million, or 22 cents a share, compared to $352 million, or 27 cents a share, in the same quarter last year. Wall Street expected Qualcomm to post earnings of 21 cents a share, the consensus estimate of analysts surveyed by First Call. The San Diego-based company generated $640 million in revenue for the quarter compared to $714 million last year, a 10 percent drop. Qualcomm pinned the shortfall on lower license fees it charged for its technology and lower demand for chips as the global economy continued to drag on its business.
Looking ahead, Qualcomm expects to match Wall Street earnings expectations of pro forma 25 cents a share for the fourth fiscal quarter, and predicts a 10 percent increase in revenue from the third quarter. The company also expects to make $1.04 a share for fiscal year 2001, which beats current Wall Street expectations of $1.03 a share. Excluding charges, Qualcomm posted a net loss of $275 million for the third quarter compared to net earnings of $155 million last year.