Qualcomm Trims Sales Guidance
Qualcomm
(QCOM) - Get Report
trimmed its second-quarter revenue forecast Monday, saying average prices in its technology licensing unit were lower than previously estimated.
Qualcomm expects revenue in the March quarter of $1.35 billion to $1.4 billion, compared with its previous range of $1.35 billion to $1.45 billion. Earnings should be 26 cents to 28 cents a share, up from its previous estimate of 25 cents to 27 cents a share.
The company's guidance excludes results from its investment arm.
Analysts surveyed by Thomson First Call had been expecting earnings of 27 cents a share on revenue of $1.42 billion in the quarter. Qualcomm shares fell 35 cents, or 1%, to $35.15.
Qualcomm derives revenue from selling licenses to various wireless technologies, including code-division multiple access and an updated algorithm known as WCDMA. The company said that based on reports from licensees, it expects to collect royalties on 51 million to 52 million CDMA/WCDMA units at an average selling price of $206 in the quarter, down from its previous estimate of 46 million to 49 million units at an average selling price of $214.
The company's other major business line is semiconductors for wireless technology known as mobile station modem. "The mix of our MSM product shipments during the March quarter showed an increased demand for the value platform MSM6050 chipset," Qualcomm said.