Qualcomm’s Revenues Down 19 Percent in Q4; Profits Hurt By Charges

Wireless chip-maker Qualcomm (NSDQ: QCOM) released fiscal fourth quarter and full-year 2009 results today, reporting that revenues for the quarter and for the year fell and that profits were dragged down by charges from settlements and fines. Qualcomm’s stock rose 1.2 percent to $42.05 in after-hours trading, even though the outlook wasn’t terribly upbeat.

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In fiscal first quarter 2010, Qualcomm expects revenues to fall between $2.55 billion and $2.75 billion, which would translate between a 2 to 10 percent increase from the year ago period. Qualcomm forecasts earnings per share to fall between 54 and 58 cents a share, an increase of 74 to 84 percent compared to Q1 2009.

In results released today, Qualcomm said Q4 revenues totaled $2.69 billion, falling 19 percent compared to the year ago period. For the fiscal year 2009, Qualcomm’s revenues totaled $10.42 billion, falling 7 percent. Net income fell more substantially, mostly because of millions of dollars in charges that Qualcomm paid in association with fines by the Korea Fair Trade Commission and charges related to a settlement with Broadcom. In Q4, net income totaled $803 million, falling 9 percent compared to the previous year. For the full year, Qualcomm recorded net income of $1.59 billion, falling 50 percent year-over-year.

Qualcomm said its QSI (Qualcomm Strategic Initiatives) segment, which includes FLO TV, contributed a 5 cent diluted loss per share to the company’s bottomline in Q4 based on $93 million in operating expenses, “primarily related to FLO TV.” During the quarter, FLO TV kicked off its consumer brand in a move to try and increase revenues. As part of the new initiative, Qualcomm unveiled a new device that is only a TV and not a phone. The device will cost $250 and be available for purchase this holiday season. FLO TV will charge about $9 a month for the service.