Qualcomm ( QCOM) rose 3% late Wednesday after beating its fiscal first-quarter profit target by a penny.

The San Diego wireless technology shop posted adjusted net income of $722 million, or 43 cents a share, which is up 2% sequentially and 8% above year-ago levels. Analysts were looking for pro forma earnings of 42 cents a share.

Sales for the quarter were $2.02 billion, roughly flat with the prior quarter and up 16% from a year ago. Analysts had been expecting revenue of $2.07 billion.

Looking ahead, Qualcomm says if it fails to reach a new licensing agreement with Nokia ( NOK) by the April 9 expiration date, Nokia has the option to extend the agreement through the end of 2008.

But if Nokia fails to pay royalties for the June quarter, Qualcomm warns that it will shave about a nickel a share off fiscal fourth-quarter earnings. Nokia is seeking to reduce or even eliminate the royalties it pays Qualcomm for its CDMA and WCDMA licenses.

For the fiscal second quarter, Qualcomm sees adjusted earnings flat with the first quarter at 43 cents on sales of $2.05 billion. Analysts were looking for 43 cents on $2.1 billion in revenue.

For the full year, Qualcomm expects to post pro forma earnings of about $1.43 a share on $8.35 billion. Analysts expect $1.78 in adjusted profit on $8.55 billion in revenue for fiscal 2007 ending in September.

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