Qualcomm Profits Soar on Sale of Radio Spectrum Assets

Qualcomm says that its second-fiscal quarter revenues jumped by 28% to reach US$4.94 billion, while net income more than doubled to US$2.23 billion after the company included a one off gain of US$761 million from discontinued operations.

During the quarter, the company received $1.9 billion in proceeds from the sale of substantially all of its 700 MHz spectrum.

Operating income was up by 6 percent at $1.51 billion.

“I am pleased to report another quarter of record revenues and earnings per share, driven by strong demand for 3G- and 4G-enabled devices across both developed and emerging regions,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “We are excited to see the continued growth of 3G and 4G smartphones, as well as new mobile computing devices. We are increasing our operating expenses to facilitate additional 28 nanometer supply and to continue to position our industry-leading chipset solutions for the opportunities ahead.”

The company ended the quarter with US$26.6 billion in cash, cash equivalents and marketable securities, compared to US$22.1 billion a year ago.

The effective income tax rates have been estimated to be approximately 18 percent.

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