Qualcomm Q1: Mixed on estimates, but strong quarter on smartphone, tablet sales

Summary:The chip maker's chief executive said its partners' strong smartphone and tablet sales helped drive the record quarterly results, but missed on estimates. Its Q2 outlook also missed estimates.

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Qualcomm's smartwatch, the Toq Image: CNET

Qualcomm delivered a mixed bag financial results for the last three months of 2013 as it continues to rides the waves of the smartphone and tablet market.

The San Diego, Calif.-based chip maker reported on Wednesday fiscal first quarter net income of $1.88 billion with earnings of $1.09 per share (statement). Meanwhile, non-GAAP earnings were $1.26 per share, on revenue of $6.62 billion, up 10 percent year-over-year.

Wall Street was looking for earnings of $1.18 a share on revenue of $6.67 billion.

An earnings hit, and a revenue miss. It could've been worse.

At the end of the quarter, Qualcomm ended with $31.6 billion cash and equivalents, up 11 percent year-over-year.

Qualcomm chief executive Paul Jacobs said in prepared remarks he was "pleased" with the record results in quarterly revenue, citing strong device sales and shipments by its partners.

He added: 

"Looking forward, we expect our performance to reflect the continued strong global growth of smartphones, our chipset leadership position and our competitive strengths in 3G/4G technologies and products."

In the three-month period ending December, Qualcomm had chip shipments of 213 million units, up 17 percent year-over-year.

Its research and development efforts also rose by 20 percent to $1.32 billion.

Looking ahead to its fiscal second quarter, Qualcomm's projections are just shy of Wall Street expectations. The company projects revenue of $6.1 billion to $6.7 billion, with non-GAAP earnings of $1.15 to $1.25, significantly higher than its year-ago quarter. 

Wall Street expected earnings of $1.26 a share on revenue of $6.72 billion.

Qualcomm expects between 180-195 million chip shipments, an increase of between 4 and 13 percent, on the coming quarter. 

The company's stock closed down 1.2 percent at $71.12 per share on the New York Stock Exchange at market close. In after-hours trading, its shares climbed by more than 2 percent.

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$QCOM up slighty in after-hours trading on Wednesday Image: Google Finance

 

Topics: Processors, Hardware, Mobility

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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