Qualcomm's Stock Dips Sharply
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The stock price of Qualcomm Inc. dropped about 15% today after the company reported that its second-quarter earnings will fall below first-quarter levels due to canceled orders from South Korea.
According to a Reuters report, Qualcomm, developer of digital wireless communications devices as well as the Eudora e-mail product, announced late Thursday that it would cut 700 temporary jobs, due to the fact that two Korean manufacturers cancelled orders for its Application Specific Integrated Circuits.
In addition, Qualcomm reported that sales of its Q phone will be lower in the second quarter due to the Korean cancellation. The Q phone is a portable device that offers telephone, pager, and voice mail services.
Qualcomm did not report on how much it expected the second-quarter results to fall below the first-quarter earnings.