Qualcomm dips, despite earnings
Shares in the digital wireless communications company dip despite its report of better-than-expected earnings on record revenue.
Stock in the company was down 3.47 percent today to 55.63. Shares have traded as high as 70.3603 and as low as 37.75 in the past 52-weeks. The stock had fallen more than 1 percent yesterday ahead of its earnings news.
Qualcomm reported net income of $39.9 million, or 54 cents a share, compared with $30.1 million, or 42 cents a share, for the like quarter a year ago.
Wall Street anticipated a profit of 50 cents a share from the company, according to First Call.
Revenues for the quarter ended September 27 rose to $926 million from $601 million last year.
"We achieved record product shipments in all of our major product areas, despite a challenging world economic environment," chief executive Irwin Jacobs said in a statement.
Qualcomm executives said sales of its code division multiple access (CDMA) phones were strong this quarter. Shipments exceeded 7 million phones during the fiscal year. "We achieved record product shipments in all of our major product areas, despite a challenging world economic environment," chief executive I.M. Jacobs said in a statement.
The company has been active in emerging communications technologies and recently said it has plans to enter new wireless data markets around the world, including China. The company also said product shipments to Mexico were strong during the fourth quarter.
The company said unstable global markets affected its accounting for the quarter. Qualcomm said it did not record as revenue about $29 million in infrastructure equipment shipments to Russia.
During the quarter Qualcomm announced plans to offer a new personal digital assistant-digital mobile phone combination that would operate on 3Com's Palm operating system.
Qualcomm also teamed with satellite communications company Globalstar in April to expand its reach in the wireless voice market.
For the fiscal year, Qualcomm posted net income of $109 million, or $1.47 a share, on revenue of $3.3 billion, compared with net income of $92 million, or $1.28 a share, on revenue of $2.1 billion for the 1997 fiscal year.