Updated from 8:38 a.m. EST

Qualcomm ( QCOM) said Monday afternoon that it expects to ship more chips in the third quarter than in the second quarter, thanks to growing demand in North America, Japan and South Korea.

Earlier in the day, the company said its second-quarter earnings would be in line with analysts' estimates on solid sales of next-generation telecommunications chips. The company's shares rose $3.21, or 9.8%, to $35.91 in regular Nasdaq trading. Qualcomm tacked on an additional 0.7% in Instinet trading after the close.

Qualcomm expects to earn a pro forma 20 cents a share in the second quarter ending March 31, matching the consensus estimate as compiled by Thomson Financial/First Call. The company's CDMA Technologies unit is on track to ship about 14 million Mobile Station Modem phone chips for the quarter, of which roughly 8 million are expected to be next-generation 3G CDMA2000 1X chips. Previous guidance was for 13 million to 14 million total shipments and about 7 million CDMA2000 1X MSM phone chips.

"We believe this strength in demand demonstrates the strong acceptance of 3G CDMA and the expectation that U.S. consumers will increasingly join the more than five million CDMA2000 1X users in South Korea in adopting high-quality 3G CDMA service," Qualcomm said.

The company said it has about $2.4 billion of cash and essentially no debt and is producing pro forma, annualized cash flow from operations in excess of $1 billion.