NEW YORK -(Dow Jones)- Qualcomm expects its new licensing agreement with Nokia to add to fiscal 2008 earnings by 7 cents to 13 cents a share, according to Qualcomm Chief Financial Officer William Keitel.
Nokia is also expected to contribute 20 cents to 28 cents a share to fiscal 2009 earnings, Keitel said to analysts during a conference call Thursday morning.
Qualcomm earlier Thursday increased its fiscal-year revenue estimate and provided fiscal fourth-quarter earnings and revenue forecasts. Late Wednesday, the company said it had settled a long-running legal battle with Nokia.
Keitel warned the estimate projection from the Nokia pact was an early one, and could change. The contribution is expected to begin in the fourth quarter. He added that the increase in the company's forecast came as a result of higher demand in next-generation phones, and not because of the Nokia settlement. The company's current quarter won't include Nokia's settlement.
The settlement removes an obstacle barring the two from working together. President Steve Altman said the agreement opens the opportunity to work together, while Chief Executive Paul Jacobs said a goal was to get together with Nokia soon to discuss collaboration.
Keitel backed the company's estimate of unit shipment growth of 28% to 36% over a year ago, and said he expects a further boost from China eventually granting third-generation licenses, which should spark sales of 3G phones in the country. Jacobs added, however, that he remains cautious of when those licenses would be granted.
The agreement with Nokia covers next-generation wireless technology such as LTE, WiMax and Ofdma. Altman said the agreement acknowledges the value of its next-generation intellectual property, including Ofdma technology.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 24th July 2008
Posted to: www.cellular-news.com/story/32639.php