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

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.

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.

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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.

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