Qualcomm keeps the good news coming in Q2

Qualcomm, one of the most important US companies for cellular mobile technology, has reported its second quarter revenue rose to $1bn, powered by larger than expected shipments of its chips for phones.

Net profit for the period was $103m or 13 cents per share. That compares with a net profit of $44m or 5 cents per share, on $696m in revenue during the same period a year ago.

On a pro forma basis, which doesn't include investments and amortisation of goodwill, Qualcomm posted a profit of 38 cents per share, or about 2 cents higher than what a consensus of analysts polled by First Call had expected.

At the close of regular trading, Qualcomm shares were down 23 cents, or 0.7 per cent, to $32.98. The earnings report was issued after the bell.

Qualcomm said greater demand for its mobile phone chips helped fuel the quarter's mostly positive results. The company said in March that it expected to ship 28 million MSM cell phone chips this quarter, about a million more than projected in January.

The wireless industry has recently shown signs of life as telephone providers have started reporting profits again. Qualcomm sells cell phone chips and licenses its Code Division Multiple Access (CDMA) technology, a standard inside 20 per cent of the world's mobile phones. Most phones use GSM.

Ben Charny writes for CNET News.com.