Qualcomm's Quality Pays

The cell-phone explosion may have made intrusive beeps at business meetings more commonplace, but to Qualcomm, it's meant a multibillion-dollar business.

Qualcomm makes Code Division Multiple Access chipsets and software for digital, wireless connections. Most major cell-phone providers, including Nokia, Sprint PCS, and US West, use Qualcomm's technology because of its reliability, says Jane Zweig, an analyst at consulting firm Herschel Shosteck Associates Ltd. That efficiency has helped cellular service providers keep rates low, she says.

Last week, Qualcomm's success and reputation paid off big-time. The company reported third-quarter revenue of $1 billion and net income of $59 million.

If charges were excluded, the company would have reported record net income of $135 million for the quarter, representing a 445% increase over the same quarter last year.