Qualcomm impresses with Q4 numbers

Qualcomm yesterday reported results for its fiscal fourth quarter and full year 2002 that beat already lofty guidance.

For the quarter ending Sept. 30, the company posted revenues of $847 million, up 34% year over year. Net income was $190 million, or 23 cents per share, compared to a 10-cent-per-share loss from the same quarter a year ago. On a pro forma basis, revenues were $840 million while earnings were $250 million, or 31 cents per share, beating First Call’s consensus analyst estimates by 4 cents per share.

According to Bill Keitel, Qualcomm’s chief financial officer, most of this increase can be attributed to three factors.

“Approximately 3 cents of this improvement was due to higher MSM chip shipments, continued gains in operating efficiencies and CDMA phone average selling prices holding constant at approximately $200 per phone,” he said.

For fiscal 2002, the company reported $3 billion in revenue, up 17% from fiscal 2001. Net income was $360 million, or 44 cents per share, compared with a loss of 76 cents per share in 2001. Pro forma revenues for the year were $794 million, or 98 cents per share, up from $710 million, or 88 cents per share in fiscal 2001.

Qualcomm’s CDMA Technology unit, the company’s chipset arm, showed the greatest growth for the quarter by posting revenues of $483.6 million, 44% higher than the same quarter a year ago. The company’s technology licensing arm also put up impressive numbers, posting revenues of $243.5 million, up 29% year over year.

Overall, analysts were impressed with the numbers reported by Qualcomm.

“We believe that Qualcomm proved that it deserves a premium valuation as it was able to substantially beat revenue and EPS expectations, while continuing to expand its margin and market share,” said a note from Legg Mason.

In addition to announcing financial results Qualcomm gave guidance for fiscal Q1 and full year 2003. The company expects pro forma revenues for the first quarter to rise 15% to 22% sequentially, with EPS between 35 and 38 cents. For the full year, Qualcomm is forecasting a pro forma revenue increase of 19% to 23%, with EPS of $1.15 to $1.20.