Qualcomm Q4 net down 9% at $803 mn

Mobile chip maker Qualcomm has reported a decline of nine per cent in fourth quarter net income at $803 million hit by charges and lower revenues.

While in the year-ago period, the company had a net income of $878 million, Qualcomm said in a statement.

"The fourth quarter of fiscal 2009 results included a $230 million charge, or $0.14 diluted loss per share, related to an estimated fine expected to be levied by the Korea Fair Trade Commission," the company added.

Total revenues for the fourth quarter ended September 27, decreased to $2.69 billion from $3.33 billion in the same quarter last fiscal.

 

However, the company has been showing signs of improvement, as on sequential basis, net income was up 9 per cent. Similarly, total revenues were only 2 per cent down from the preceding quarter, while comparing year-on-year basis, it was down 19 per cent.

"I am very pleased with the performance of our businesses this past year, despite a challenging and uncertain global economic environment," Qualcomm Chairman and CEO Paul E Jacobs said.

Jacobs expects accelerated CDMA device growth in 2010 as the global migration to 3G continues.

He further added: "I am also pleased to announce that we recently extended our license agreement with Samsung, covering both 3G and 4G."

The company said that fourth quarter results also included $560 million in revenues, as a result of the execution of license and settlement agreements with Nokia.

The American company has a strong balance sheet with cash, cash equivalents and marketable securities totaled about $17.7 billion at the end of the fourth quarter of fiscal 2009, compared to $15.7 billion in the third quarter of fiscal 2009. It stood at $11.3 billion in a year ago.