Qualcomm Blames the Economy

Updated from 5:14 PM

Get the first-aid kit, another third-generation wireless player needs patching up this week as Qualcomm (QCOM Quote) swooned in its second-quarter earnings report and lowered its forecasts for coming quarters. Qualcomm met analysts' earning estimates for its second quarter ended March 31, turning in 29 cents a share, falling short of revenue expectations with $713 million in revenue. The Street expected 29 cents a share in profit and $721.95 million in revenue, according to Multex.com.

Qualcomm also lowered its sights for third-quarter earnings to 21 cents a share, a dramatic step down from current Multex.com analyst estimates of 32 cents. That drops full fiscal year expectations to $1.05 in earnings, 20 cents off Multex.com's $1.25 earnings figure. CEO Irwin Jacobs trimmed the company's hopes for calendar year 2001 handset sales that use Qualcomm's CDMA technology, one of several competing wireless standards, from 90 million to 80 million. Jacobs blamed "slowing sales and replacement rates related to economic conditions," for the pullback

Qualcomm's revenue grew only 4% sequentially and 10% over the year-ago quarter. The holder of key wireless technology patents reported that it delivered the anticipated 16 million chipsets this quarter, but would not achieve its recently reaffirmed guidance of 16 million chipset sales in the third quarter. Qualcomm trimmed that number down to 14 million. ...