Qualcomm 2Q net tops Street; faces bribery probe
Qualcomm 2nd-quarter profit tops Street; company faces bribery probe in China
SAN DIEGO (AP) -- Chipmaker Qualcomm Inc. on Wednesday reported second-quarter earnings that topped Wall Street expectations thanks to strong demand for mobile device chipsets, but said revenue rose less quickly than expected.
The company also said it had received notice from the Securities and Exchange Commission that regulators may pursue enforcement against Qualcomm for allegedly making bribes to Chinese state-owned companies or agencies. Qualcomm said it has filed a rebuttal explaining why it doesn't believe it violated the Foreign Corrupt Practices Act.
A message left with the SEC was not immediately returned
Qualcomm shares fell $3.21, or 4 percent, to $77.50 in after-hours trading.
Net income in the three months through March 30 rose 5 percent to $1.96 billion, or $1.14 per share, from $1.87 billion, or $1.06 per share, a year ago.
Excluding the cost of paying executives with stock and other items, adjusted earnings came to $1.31 per share, beating the $1.23 per share expected by analysts polled by FactSet.
Revenue rose 4 percent to $6.37 billion, short of the $6.49 billion expected by analysts.
For the current quarter, Qualcomm expects revenue between $6.2 billion and $6.8 billion and adjusted earnings of $1.15 to $1.25 per share.
The midpoints of both measures were below expectations. Analysts predicted Qualcomm was headed for third-quarter revenue of $6.60 billion and earnings of $1.25 per share.
However, the company raised its guidance for the year by a nickel to account for the benefit of a share buyback plan. Qualcomm said it now expects annual earnings of $5.05 to $5.25 per share. Analysts had projected $5.12 per share.
