Innovation is a lot like love, everyone knows when it happens, but nobody really knows what it is - Dean 'Mr Segway' Kamen
SEMICONDUCTUR ARCHITECT Qualcomm posted better than expected financial results for its first fiscal quarter of 2014, but still disappointed Wall Street analysts that had forecast slightly higher revenues.
For the quarter ended 31 December 2013, the company's revenues rose 10 percent compared to the same quarter last year, to $6.62bn.
However, this was slightly under analysts' estimates, which had forecast revenue of $6.67bn.
Qualcomm also said that it earned $1.88bn, or $1.09 a share, which was in line with the same quarter last year.
More notably, Qualcomm increased its research and development (R&D) expenses by 21 percent year on year due to an increase in costs to develop code division multiple access (CDMA) based 3G and orthogonal frequency division multiple access (OFDMA) based 4G LTE as well as other technologies for integrated circuit and related software products and to expand its intellectual property portfolio.
For the second quarter, Qualcomm expects revenues of between $6.1bn to 6.7bn.
"Looking forward, we expect our performance to reflect the continued strong global growth of smartphones, our chipset leadership position and our competitive strengths in 3G/4G technologies and products," Qualcomm chairman and CEO Dr Paul Jacobs said in its earnings release.
However, it seems that the firm had some less optimistic news this week when reports surfaced that it will be hit with a record fine exceeding $1bn in a Chinese antitrust probe. China's National Development and Reform Commission (NDRC) began an investigation of Qualcomm last year and is holding talks with the US company.
At CES in January, Qualcomm CEO Steve Mollenkopf said that the firm will become a leader in the 64-bit processor market, despite an executive at the firm having earlier dismissed the technology as little more than a gimmick.
Mollenkopf claimed that despite that executive's dismissal of 64-bit chip technology, it aims to become a leader in the 64-bit processor market.
"64-bit is one of many features that validate the theme that the phone and computing just meld together, making a strong opportunity for Qualcomm," he said. µ