QUALCOMM Inc. F3Q09 (Qtr End 06/28/09) Earnings Call Transcript

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2009-07-22 17:34:19.0

Tags: Ramp, Call Transcript, Qualcomm Inc., Earnings, Chip, UBS AG, Chipsets, Semiconductors, Network Technology, Hardware, Components, Networking, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). One moment please for the first question. Maynard Um from UBS. Please go ahead with your question.

Maynard Um - UBS

Thanks. Just a question on your guidance, your handset guidance assumes a ramp in the back half of the year. Now, would have assumed to be, would have actually seen an acceleration of chipset units ahead of that given low levels of inventory. So, your chip guidance is actually down slightly sequentially. Can you just talk about the disconnect there and if you can market share and those types of things? Thanks.

Bill Keitel

Maynard, this is Bill. I'll give you my inputs here. The 94 million chips we shipped in the June quarter as compared to the mid point of our estimate for the September quarter of 90 million. This is very much inline with what we were seeing approximately three months ago. We had a couple major operator launches occurring in the June quarter. We expect that there would a product build in advance of that launch as we've seen so many times in other operator launches. And so, seeing a slight decrease here in the June quarter is consistent with our prior estimates.

And then yes, you are correct. We are expecting a ramp in units in the second half of the calendar year. Obviously, there is a one quarter lag between our royalty units and shipping and the time we recognize the revenues. We are expecting a ramp in the second half for the year. You know, in terms of chipsets we are an important ingredient of that market. We'd like more share but certainly there are other parties shipping into this robust market as well.

Maynard Um - UBS

Okay. Great. And, then just quickly can you offer any feedback with your customers in Korea and kind of discussions there relative to the KFTC. That’s with me. Thanks.

Don Rosenberg

Discussions with our customers. This is Don Rosenberg. We of course have quite good relationships with our customers in Korea, and we think that largely they have been supportive of us. And so, but beyond that as we say as Paul said earlier, we don’t want to talk about the deliberations of the KFTC at this point.

Operator

The next question is from Brian Modoff from Deutsche Bank. Please go ahead with your question.

Brian Modoff - Deutsche Bank

Yes, just following up on the guidance. Recent discussion with MediaTek, they’re looking at 90 million units for Q3 and actually that number maybe higher than that. So they are seeing good demand in China. LG's numbers last night were well above the expectations and the Samsung is out tonight and we expect some decent results there.

 

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