(Corrects analyst's last name in fourth paragraph)
By Noel Randewich
SAN FRANCISCO, July 24 Shares of Qualcomm Inc
rose more than 3 percent after the leading mobile
chipmaker posted third-quarter results that met expectations and
eased concerns about slower growth of smartphone sales.
Few semiconductor companies have benefited more from the
mobile revolution than Qualcomm, but the supplier of chips for
Apple Inc's iPhones and Android devices has begun to
face pressure as growth in smartphone sales shifts to Asia.
In its fiscal third-quarter report on Wednesday, Qualcomm
met expectations for earnings and was ahead on revenue.
"It looks like momentum is continuing. It doesn't feel like
the smartphone story is over," Bernstein analyst Stacy Rasgon
In Apple's quarterly report on Tuesday, the Cupertino,
California company said it sold more iPhones than Wall Street
Network operators worldwide are shifting to a high-speed
wireless technology known as long-term evolution (LTE) that
Qualcomm is a leader in, helping the company grow much faster
than Intel Corp and other suppliers of chips for
But Qualcomm faces competition from small Asian mobile
chipmakers as well as market leader Intel, whose mobile push is
showing promising signs after failing to attract device makers
in recent years.
"We watch those who we consider our competitors very
closely," said Qualcomm Senior Vice President Bill Davidson.
"Intel hasn't seen great success in terms of market traction yet
but we clearly watch them just based on their capabilities."
Qualcomm posted fiscal third-quarter revenue of $6.24
billion and net income of $1.58 billion, or 90 cents a share,
boosted by growing demand for smartphones in Asia.
It said revenue in the current quarter, which ends in
September, would range from $5.9 billion to $6.6 billion.
Analysts on average had expected third-quarter revenue of
$6.055 billion and fourth-quarter revenue of $6.293 billion,
according to Thomson Reuters I/B/E/S.
"This is better than the Street had been girding for, given
what's been going in the smartphone markets," said Williams
Financial analyst Cody Acree.
For the fiscal third quarter, non-GAAP earnings per share
were $1.03, in line with expectations.
Qualcomm estimated fiscal 2013 non-GAAP earnings of $4.48 to
$4.56 per share. Its previous forecast was $4.40 to $4.55.
Shares of Qualcomm rose 3.53 percent in extended trade after
closing down 1.46 percent at $61.39 on Nasdaq.
(Reporting by Noel Randewich; Editing by Richard Chang)