NEW YORK (CNN/Money) - Qualcomm Inc. reported sharply lower second-quarter earnings Wednesday, in line with Wall Street expectations, as the developer of wireless phone services and products cut costs in an effort to cope with declining sales.

For the quarter ended March 31, Qualcomm reported operating earnings of $160.8 million, or 20 cents a share, down from $210 million, or 26 cents a share, a year earlier. Analysts on average expected a profit of 20 cents a share, according to earnings tracker First Call.

Second-quarter revenue fell 8 percent, to $659.3 million from $717.1 million.

Qualcomm (QCOM: up $0.30 to $32.55, Research, Estimates) also said it now anticipates third-quarter revenue to increase 3 percent to 6 percent from the second quarter, with earnings forecast to be 21 cents to 23 cents a share. Analysts on average expect earnings of 23 cents a share, according to First Call.