Qualcomm forecasts extra $600m in revenues Paul Jacobs, chief executive, said the group had become the world's third-largest chipmaker Qualcomm, the world's biggest mobile chipmaker by sales, said it expected an additional $600m in revenues this fiscal year than forecast, as smartphone sales increase. The San Diego-based company reported $6.12bn in revenues for its second quarter ended March, ahead of Wall Street expectations of $6.08bn. However, profits of $1.17 a share were in line with analysts" consensus and its shares fell 6 per cent in extended trading in New York to $62.05. Qualcomm supplies processors and radio chips for smartphones, whose shipments are expected to grow at 20 per cent a year to 1.7bn in 2017, according to research firm Gartner. However, the company also cited strength in "emerging regions," where third-generation devices have grown 34 per cent over the past year to 1.1bn. It sees potential for growth in China, where only a third of phones can achieve 3G speeds. These phones sell in volume but at cheaper prices, lowering Qualcomm's figures for average selling prices of phones and suggesting this is the reason the revenue boost it received in its second quarter did not translate into the profits expected by Wall Street. Steve Mollenkopf, Qualcomm president, said the company was predicting it would increase revenues and earnings per share this fiscal year and it was growing faster than the market as a whole. There are two things happening. We are seeing volumes increase in emerging regions, but the bigger story is we are seeing strength at the high end as well," he said. The company was experiencing a big take-up of its higher-margin Snapdragon 600 and 800 processors, he said. These are being used in the latest tablets and smartphones, many of which will appear in the second half of the year. The Qualcomm president said quarters were becoming "lumpier" than in the past - while emerging regions could dominate in one quarter, flagship devices being launched in mature markets could be a feature the next. Qualcomm raised its estimate of 3G and 4G device shipments by the mobile industry this calendar year by 15m units, from 1.035bn to 1.05bn. Paul Jacobs, chief executive, told an analyst conference call that the company was seeing strong demand for smartphones and strong semiconductor volumes. Qualcomm had grown to become the world's third-largest chipmaker, up from sixth place last year, he said. Last November the company became more valuable than Intel, the world's biggest chipmaker by revenues, although its market capitalisation recently slipped back below its rival's. Net income for the second quarter was $2.07bn, up 17 per cent year-on-year, but down 6 per cent sequentially for the seasonally quieter quarter. Qualcomm raised its revenue guidance for the fiscal year from $23.4bn-$24.4bn, to $24bn-$25bn. Mr Jacobs said dividend payments to shareholders had been increased by 40 per cent and a $5bn share buyback had been authorised. Dividends of 25 cents per share, worth $431m, are being paid.