Qualcomm, the world’s largest maker of mobile chips, has slashed revenue and income guidance for its current fiscal year, after weakening demand for its chips saw it report a 56 percent annual decline in net income in its previous financial quarter. Revenues for the San Diego-based company’s fiscal first quarter (ended 28 December) reached US$2.52 billion, up 3 percent year-over-year but down 25 percent sequentially, while net income fell to US$341 million, down 56 percent over the year and 61 percent sequentially. The results saw the company lower both its estimate for 2009 operating income (to a range between US$2.2 billion and US$2.5 billion, from US$2.6 billion to US$2.8 billion previously), and full year revenue (to a range of US$9.3 billion to US$9.8 billion, from US$10.2 billion to US$10.8 billion previously). The company also downgraded the value of some of its assets, knocking US$388 million off its marketable securities portfolio, which it blamed on the distress in the global financial markets. 

Despite the lower forecasts, CEO Paul Jacobs remained upbeat on the company’s prospects with regards to 3G migrations. “Despite weak economic conditions, wireless subscribers continue to migrate from second-generation to third-generation CDMA networks around the world,” Jacobs said in a statement. He added that the company’s first quarter revenues were at the high end of prior guidance and operating income had exceeded prior guidance, driven primarily by the mix of higher-end chipsets, higher-priced data capable devices and improved expense management.