Qualcomm Dips on Dim Outlook

Qualcomm provided no updates on its many legal battles including a patent infringement case with rival Broadcom (BRCM Quote) and a technology licensing dispute with Nokia (NOK Quote). Qualcomm says it excluded about 27 cents a share in uncollected Nokia royalties from its projected fiscal 2008 earnings forecast.

One strong signal for the current quarter is that Qualcomm expects the average selling price per phone to be $212, up from $208 a year ago as more expensive phones enter the market during the holidays.

Qualcomm also projects fiscal first-quarter chip shipments will hit 76 million and CDMA phone shipments will be around 96.5 million. For 2007, Qualcomm raised its CDMA phone shipment forecast to 390 million up from 377 million previously expected.

For 2008, ASPs are expected to fall to $199 as more low cost phones are sold in developing markets.

Qualcomm shares fell $2.48, or 6%, to $37.28 in after-hours trading Thursday.