SAN DIEGO-Chipmakers Qualcomm Inc. and Texas Instruments Inc. both raised revenue forecasts based on improving sales, news that could translate into an improved market for the worldwide mobile-phone industry.
First up, Qualcomm raised its revenue expectations and earnings per share forecasts for its first fiscal quarter, news that sent the company’s stock up slightly to $45.39 per share last week. The company said its revenues will be in the “high end” of its prior estimates of between $1.67 billion and $1.77 billion. The company said its earnings per share will be between 38 cents and 39 cents, up from previous expectations of 36 cents to 38 cents.
“Our updated guidance for the first fiscal quarter reflects higher handset ASPs (average selling prices) due primarily to strength in W-CDMA handset shipments in Europe and a positive mix in 1x EV-DO MSM chipsets,” said Paul Jacobs, the company’s chief executive officer. “Regionally we see strong demand for 1x EV-DO products in North America, Japan and Korea. Our expectations for stronger W-CDMA demand in Europe appear to be materializing as well. We see several European operators being particularly aggressive this holiday season with their 3G offerings. In addition, we now anticipate operating expenses will be modestly lower and investment income will be modestly higher than previously expected for the first quarter.”
Separately, TI increased its semiconductor revenue expectations to between $3.2 billion and $3.325 billion, up from its prior range of $3.075 billion to $3.325 billion. The company also raised the low end of its forecasts for companywide revenues.
TI’s shares were down slightly after the news.
TI and Qualcomm are two of the largest chip suppliers to the mobile-phone industry.
