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Qualcomm edges target
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January 25, 2001: 5:23 p.m. ET
Wireless firm beats 1Q forecast despite soft sales; OK with future estimates
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NEW YORK (CNNfn) - Qualcomm Inc. reported fiscal first-quarter earnings Thursday that were better than analysts' expectations despite softer-than-expected sales, with the company saying it should hit future forecasts.
The wireless equipment provider earned $231.6 million, or 29 cents a share during the quarter ended Dec. 31, on a pro forma basis that excludes special items. That compares with pro forma earnings of $209.7 million, or 27 cents a share, during the comparable period a year earlier and is a penny better than the 28 cents per share forecast by analysts surveyed by earnings tracker First Call.
 Revenue fell 10 percent to $684.0 million from $763.7 million during the year-ago period. First Call's forecast called for Qualcomm to log $705.1 million in revenue during the quarter.
Still the company said it is comfortable with First Call's fiscal second-quarter EPS forecast of 29 cents and the full-year EPS forecast of $1.27. It said it expects its second-quarter shipments to be constrained by capacity limitations at a supplier, but it said those constraints should be resolved by its fiscal third quarter.
It said that its full-year outlook takes into account a 7-cents-a-share loss from its business with troubled satellite telephone service Globalstar (GSTRF: Research, Estimates), which defaulted on debt Jan. 16. Qualcom said that its Globalstar-related revenue will be "significantly" lower for the remainder of its fiscal year.
Shares of Qualcomm (QCOM: Research, Estimates) gained $2.31 to $76.25 in after-hours trading Thursday after slipping 31 cents to a regular-hour close of $73.94 ahead of the earnings report. 
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