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Qualcomm Sees Earnings Slide 20%

July 27, 2001|From Reuters and Bloomberg News

Qualcomm Inc. reported a 20% decline in earnings for its fiscal third quarter because of soft demand for its chips as well as lower royalties and licensing fees.

The San Diego-based company said pro forma earnings fell to $174.4 million, or 22 cents a share, for the quarter ended June 30 from $218.1 million, or 27 cents, in the year-ago quarter.

The results met forecasts that had been reduced sharply from 33 cents a share on the company's guidance, according to First Call/Thomson Financial.

Revenue fell 10% to $640 million, the company said, mostly because of a drop in business with Globalstar Telecommunications, lower license fees and reduced unit shipments of certain integrated circuits and other products.

Although sales of mobile-phone chips will decline in the fiscal fourth quarter from the prior period, revenue will be 10% higher because of increased shipments of semiconductors for cellular network equipment and higher license fees, Qualcomm said.

The company also slightly trimmed its fiscal 2001 earnings forecast but said it expects to increase revenue and profit in 2002, thanks to the deployment of new technology and increased market share in the wireless market.

Qualcomm's shares closed up 7 cents at $59.66 on Nasdaq, before the results were announced.

Other earnings, excluding one-time gains or charges unless noted, include:

* Bookseller Barnesandnoble.com Inc. said its second-quarter loss narrowed to $31.4 million, or 20 cents a share, from $49.7 million, or 31 cents, a year earlier, beating forecasts by a penny. Sales rose 2.9% to $83.7 million.

* Electronic Arts Inc. reported a loss of $40.3 million, or 30 cents a share, for its fiscal first quarter, compared with a loss of $38.7 million, or 30 cents, a year ago, a better performance than the 34-cent loss analysts expected. The biggest U.S. publisher of video game software said sales rose 18% to $182 million, exceeding forecasts of $163 million.

* LSI Logic Corp. reported a second-quarter operating loss of $20.9 million, or 6 cents a share, a penny better than expectations, contrasted with year-ago profit of $98 million, or 29 cents. Sales fell 28% to $465 million, and the chip maker said sales will be down again in the third quarter.

* Silicon Graphics Inc. said its second-quarter loss narrowed to $232 million, or $1.20 a share, compared with a loss of $614 million, or $3.31, a year ago. Sales dropped 19% to $431.5 million. The results were in line with lowered expectations.

* VeriSign Inc. reported an operating profit of $52.6 million, or 25 cents a share, for the second quarter, beating expectations of 14 cents, as sales more than tripled to $231.2 million. Including one-time items, the company lost $11.2 billion, or $55.49 a share, compared with a loss of $453 million, or $3.37, a year ago.

* WorldCom Group, the data and Internet business of WorldCom Inc., said second-quarter profit fell 26% to $574 million, or 20 cents a share, excluding one-time items and its stake in Brazil's Embratel. The results matched analyst forecasts. Revenue rose 12% to $5.4 billion.

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