Qualcomm Achieves Record Quarterly Revenue (Again)

Telecom News Editorials Reports Glossary

6:00 am on April 21, 2006 | Category: Business, Wireless Technology, Corporate

With the help of increasing 3G wireless adoption, mobile chipmaker Qualcomm reported record revenues yesterday, for the third quarter running.

The San Diego based wireless technology giant generated $1.83 billion last quarter, a 34% increased from the same period last year. Net income, meanwhile, increased by 11% to $593 million, or $0.34/share.

Qualcomm CEO, Paul Jacobs attributes the bulk of this growth to growth in demand for the company’s patented CDMA wireless chips, which are now being used in most 3G-enabled mobile phones.

Until the past couple of years, CDMA was virtually shut out of Europe and most of the world’s emerging markets, due to incompatibility with the GSM standard popular for basic communication in those areas. Qualcomm’s reach was limited to North America, and parts of Asia, where CDMA technology was used for voice services.

As 3G services become more mainstream, however, CDMA-based networks are becoming more common throughout the globe, boosting Qualcomm’s market reach and handset royalties.