{"id":240447,"date":"2010-01-28T03:55:19","date_gmt":"2010-01-28T08:55:19","guid":{"rendered":"tag:contentnext.com,2010-01-28:article\/419-qualcomm-q1-profit-up-but-2010-forecasts-are-down-due-to-economic-weakn"},"modified":"2010-01-28T03:55:19","modified_gmt":"2010-01-28T08:55:19","slug":"qualcomm-q1-profit-up-but-2010-forecasts-are-down-due-to-economic-weakness","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/240447","title":{"rendered":"Qualcomm: Q1 Profit Up, But 2010 Forecasts Are Down Due To Economic Weakness"},"content":{"rendered":"

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\n\t\t\t\t\t\t\t\t\t\"Qualcomm
\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/p>\n

Qualcomm<\/a> reported today that net profit more than doubled to $841 million in the first quarter 2010 from $341 million a year ago. Revenue also rose to $2.67 billion compared to $2.52 billion. But the mobile chipmaker revised down<\/em> its forecasts for the quarter ahead, citing competition in the market and “subdued economic recovery,” particularly in developed markets like Japan and Europe. Revenues for 2010 were cut to a range of $10.4 billion to $11 billion, compared to its earlier range of $10.5 billion to $11.3 billion.<\/b><\/p>\n

Despite increasing mobile-data usage worldwide, the economy continues to impact Qualcomm’s sales. Worldwide, lower sales at the retail end are having a knock-on effect on inventory. “We continue to think the retail channel is quite lean…at the low end of the normal band,”<\/strong> said William Keitel, Qualcomm’s CFO. “Our forecast for the year assumes that channel will continue to stay lean throughout 2010.”\n<\/p>\n

That slower market has not yet been offset by some of the gains that Qualcomm has made over the last few months in both the smartphone\/mid-range phone sectors as well as in eReaders. <\/p>\n

The company’s Snapdragon processor is being built into Google’s Nexus One device and other devices. And the Brew platform is being used to deliver an app store experience to mid-range phones on AT&T (NYSE: T<\/a>), Sprint (NYSE: S<\/a>) and Verizon Wireless all committing<\/a> to Brew-based apps. (Although Brew is licensed free to handset makers, developers and operators, Qualcomm charges for the chipsets that are needed to run the platform.)<\/p>\n

Meanwhile, the company’s QSI segment, which includes FLO TV, incurred $106 million in operating expenses, or a $0.03 diluted loss per share, primarily related to FLO.  <\/p>\n

Very few mentions of the 300-pound gorilla a few hundred miles north of San Diego that was announcing a tablet product today.<\/strong><\/p>\n

– One analyst’s question on whether the radio in the new Apple (NSDQ: AAPL<\/a>) iPad was a Qualcomm product got no comment.<\/p>\n

– Another asked how the iPad announcement would impact Qualcomm’s interest in developing Mirasol, its eReader display technology. “Mirasol is getting a good response from customers,” said Steve Altman, president of Qualcomm (NSDQ: QCOM<\/a>). “Our technology will be a differentiator in the long term.” The new color display is on track to launch by the end of this year.\n<\/p>\n

Related<\/strong><\/p>\n