The quarterly profit and revenue of Qualcomm Inc, the chipmaker from the United States of America, exceeded the forecasts of Wall Street. The said results were driven by higher sales of modem semiconductors that are used in connected cars and smartphones.
Qualcomm is based in San Diego, USA. On Wednesday, the shares of the company rose by 2.4 percent to $50.99 during the after-hours trading.
The results, particularly in the smartphone chip business of Qualcomm, were noticeably in contrast to the results that were reported by other major mobile phone components makers such as TSMC and SK Hynix Inc, which have warned about slower growth in the smartphone divisions of their businesses.
The revenue from the modem chips business of Qualcomm, the largest of the company, increased by 6 percent to $3.90 billion (£2.80 billion).
The net income of Qualcomm dropped to $363 million or 24 cents per share during the three months that ended 25th of March, from $749 million or 50 cents per share during the previous year.
According to Thomson Reuters I/B/E/S, Qualcomm earned 80 cents per share, excluding one-time items, which is ahead of the average estimate of analysts amounting to 70 cents.
The total revenue of Qualcomm increased by 4.9 percent to $5.26 billion, exceeding the expectations of $5.19 billion.