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Chips are Down for Qualcomm
(29 Jan 2009, BWCS Staff)US chip-maker Qualcomm Inc has reported a lower quarterly profit figure for the last three months of 2008 (the first quarter of its financial year). The company said that the fall was due to a self-imposed charge for losses on its investments in the period. At the same time Qualcomm reined in its outlook for the coming year saying its revenues would be lower than anticipated due to weakening demand worldwide for mobile phone chips. The company declined to issue any forecast for earnings per share for this financial year (which for Qualcomm ends in September) citing market volatility.
Qualcomm said that it took a loss of US$388 million for the three months to the 28th of December 2008, related to "marketable securities". The company also admitted it had US$1.1 billion in unrealized losses in marketable securities between 28th December 2008 and 23rd January 2009.
However, the chip-maker also reported that it made a net profit of US$341 million for the three month period - compared to a profit of US$767 million during the same period in 2007. Qualcomm's revenue rose to US$2.52 billion up from US$2.44 billion in the 2007 period.
The company cut its outlook for full-year 2009 revenue to a range of US$9.3 billion to US$9.8 billion down from a previous projection of between US$10.2 billion and US$10.8 billion. Earlier this week, rival mobile phone chip-maker Texas Instruments said it planned to reduce its workforce by 3,400 posts - 12% of its total payroll. Texas said it was taking the action in the face of weak chip demand and poor visibility of future demand.
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