SAN DIEGO -- Qualcomm Incorporated (NASDAQ:QCOM) today updated its financial guidance for the third fiscal quarter ending June 29, 2008.

The following statements are forward looking and actual results may differ materially. Please see "Note Regarding Forward-Looking Statements" at the end of this news release for a description of certain risk factors and Qualcomm's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks that may affect the forward-looking statements.

Pro Forma Defined

Pro forma results and guidance exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process research and development (R&D) expense.

Third Fiscal Quarter Business Outlook

Based on the current business outlook, we now anticipate third fiscal quarter Qualcomm pro forma revenues to be slightly above the high end of the prior guidance of approximately $2.5 to $2.7 billion. We now anticipate third fiscal quarter Qualcomm pro forma diluted earnings per share to be approximately $0.54 to $0.55, compared to our prior estimate of approximately $0.50 to $0.52. Our current estimate is based on the shipment of approximately 86 million Mobile Station Modem(TM) (MSM(TM)) chips during the quarter as compared to our prior estimate of 85 to 88 million units.

The majority of our licensees have reported royalties in the third fiscal quarter for products shipped in the March quarter. Based on these reports and our own estimate of unreported activity, we estimate March quarter shipments of approximately 107 million CDMA devices (CDMA2000(R) and WCDMA) at an estimated average selling price of approximately $226 per unit, compared to our prior estimate of approximately 105 to 109 million devices at an average selling price of approximately $223. Approximately 86 million CDMA devices were shipped in the year ago quarter.

"We are expecting another successful quarter driven by the continued global migration to 3G," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "Our updated guidance reflects greater than expected demand for our 1xEV-DO and HSPA chipsets as well as revenues from advanced 3G network upgrades. March quarter reports by our licensees indicate an increased mix of high-end devices driving a higher average selling price. In addition, we believe the CDMA inventory channel remains within the historical normal band.

"Our business model and technology leadership continue to enable the innovation and competition that are accelerating the adoption of 3G worldwide. Together with our partners, we continue to deliver the compelling and affordable devices, applications and services wireless consumers demand. The fundamental drivers of our business remain strong, and based on the current business outlook we are raising our fiscal 2008 pro forma earnings per share guidance range to approximately $2.09-$2.13."

Qualcomm Inc. (Nasdaq: QCOM)