Qualcomm 1Q net income beats expectations

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SAN DIEGO (AP) — Mobile phone chip maker Qualcomm Inc. said Wednesday that its fiscal first-quarter profit rose 16 percent as rising global demand for smart phones boosted sales.

The company also raised its outlook for the current quarter and said that new 3G and 4G wireless networks should increase its sales opportunities during 2012. It set its earnings and revenue forecasts above analyst expectations for the current quarter.

Shares jumped 5 percent in aftermarket trading.

The company said that its net income in the quarter ended Dec. 25 was $1.4 billion, or 83 cents per share, compared to $1.17 billion, or 72 cents per share, during the same period a year before.

Revenue during the quarter was $4.68 billion, up from $3.35 billion during the same period last year.

The company also reported adjusted net income, excluding one-time charges like acquisition costs and share-based compensation, of 97 cents per share.

The results beat analyst expectations for adjusted net income of 90 cents per share on $4.56 billion in revenue.

CEO Paul Jacobs said Qualcomm expects sales and profits during the current quarter to be boosted by the company’s licensing partnerships sales of its Snapdragon processors which are used in smart phones.

The company said it expects revenue in the quarter to be between $4.6 billion and $5 billion.

The company said it now expects adjusted net income during the quarter to be between 91 cents and 97 cents per share.

Analysts were expecting adjusted net income of 89 cents per share on revenue of $4.49 billion.

Shares rose $3.04 to $62.60 in aftermarket trading following the earnings report. They rose 74 cents, or 1.3 percent, to close at $59.56 during normal trading Wednesday.