Qualcomm: Licensing, chip sales strong

Qualcomm raised its outlook for its fiscal second quarter citing "strength in licensing revenue and favorable volume and product mix in our chipset business."

Add it up and Qualcomm is projecting earnings to be well above its previous targets (statement). The better-than-expected results are an indicator of the strength of the wireless industry. Qualcomm has mobile computing platforms, CDMA-based chips and new products such as its Snapdragon processors.

For the second quarter, Qualcomm is projecting pro forma earnings of 56 cents to 58 cents a share, up from a previous range of 49 cents a share to 53 cents a share. GAAP earnings will be 42 cents a share to 44 cents a share, up from a range of 35 cents a share to 39 cents a share.

Revenue will be $2.55 billion to $2.65 billion, up from the previous outlook of $2.40 a share to $2.60 a share.

Qualcomm said shipments of its CDMA Mobile Station Modem (MSM) will hit 92 million to 93 million, up from the previous target of 88 million to 92 million.