Chip maker Qualcomm announced its first quarter results recording revenues of $2.67 billion at a 6% yearly growth but 1% drop on a sequential basis.

The net income for the firm was up by 147% yearly rise at $ 841 million and at a 1 % rise on a sequential basis. EPS surged by 150% on a yoy comparison at 0.50 per share and 4% rise on a qoq basis.

The company’s cash flow stood at $ 1.24 billion at 65% drop on a yearly comparison while operating income rose by 18% to $ 819 million and 47% rise on a sequential basis.

“The fundamental drivers of our business remain strong. We are confident that 3G will continue to develop as anticipated, and we continue to invest in innovative new products, such as Snapdragon, FLO TV™, mirasol™ and next-generation technologies, to enhance our leadership position and capitalize on this growth,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm.

However the company reduced its sales forecast for the year estimating it at not more than $ 11 billion.

“A subdued economic recovery in developed regions, including Europe and Japan, combined with relative strength at the lower end of the market, is changing our estimated 3G device average selling price and chipset mix for this fiscal year. Accordingly, we are modestly reducing our fiscal year revenue estimates to reflect this near-term market situation, but are maintaining our earnings per share guidance,” added Dr. Jacobs.

The announcement led to a significant drop in share price of the company on Nasdaq by $6.72, (14 %), to $40.48. This drop is the most severe over a ten year period.