Qualcomm Inc, the second-biggest maker of chips that run mobile phones, climbed as much as 8.9 percent in extended trading after the company raised its 2008 sales forecast, citing stronger demand.

Revenue will increase to as much as $10 billion this year, more than the $9.9 billion previously forecast, the San Diego-based company said.

President Steve Altman predicted growing demand worldwide for his company's technology, countering concern that a possible recession in the United States will hurt sales. The comments followed a similarly optimistic report this week by rival Texas Instruments Inc, which forecast sales that beat analysts' estimates.

"Qualcomm's solid performance will continue into the first quarter," said John Lau, an analyst at Jefferies & Co in New York.

"There's a significant change in market sentiment. As of today, you have a change of heart."

Qualcomm climbed as much as $3.27 to $39.90 on Wednesday in extended trading.

First-quarter net income rose 18 percent to $767 million, or 46 cents a share, from a year earlier, Qualcomm said. Sales advanced 21 percent to $2.44 billion in the period ended Dec 30.

Excluding some costs, profit this quarter will be 50 cents to 52 cents a share, Qualcomm said. Sales will be $2.4 billion to $2.5 billion.

Analysts had estimated a profit of 52 cents and sales of $2.45 billion, according to a Bloomberg survey.

"Demand is accelerating," Altman said in a telephone interview. "All of our markets around the world are growing."

Nokia feud

Qualcomm gets the majority of its revenue from semiconductor sales and the bulk of its profit from licensing its code division multiple access technology to phone makers, service providers and producers of telecommunications equipment.

The company is locked in a legal feud with Nokia Oyj, the world's largest maker of mobile phones, which refuses to pay for some technology.

On Jan 11 Qualcomm proposed that the companies stop pursuing patent-infringement lawsuits against each other until they resolve a licensing dispute. Espoo, Finland-based Nokia declined to comment on the overture.

Qualcomm would consider a spin off of its chipmaking division if that would help resolve its legal challenges and improve business prospects, said Chief Executive Officer Paul Jacobs.

Global mobile-phone shipments probably will increase 11 percent this year, according to Boston-based research firm Strategy Analytics. That's down from 13 percent last year and 20 percent in 2006.

Agencies

(China Daily 01/25/2008 page17)