Qualcomm (NSDQ: QCOM) reported Q3 revenue of $2.8 billion, up 19 percent from the year-ago quarter, and up 6 percent sequentially, beating analyst estimates. A Bloomberg survey of analysts had forecast $2.73 billion. Net income was down 6 percent year-over-year to $748 million, ($0.45 a share) from $798 million ($0.47 a share) a year ago. Pro forma earnings per share came in at $0.55, meeting estimates. Qualcomm’s Strategic Initiatives unit, which includes its mobile TV service MediaFlo, dragged profits down $0.04 a share. The company noted that QSI saw an $88 million loss in operating expenses, which it attributed “primarily” to MediaFLO USA. As for the Nokia (NYSE: NOK) settlement, Qualcomm said it would not have an impact on Q3 earnings. The deal is expected to close by the end of Q4. The chipmaker said they expected fourth fiscal quarter pro forma revenues to be approximately $2.5 to $2.7 billion and pro forma diluted earnings per share (EPS) to be approximately $0.49 to $0.51. They expect the Nokia deal to add $0.07-0.13 on EPS, and said that the wide range reflected the complexity of the agreement.

Conference Call Highlights:

— Terms of Nokia Deal: Nokia deal is seen as very favorable to Qualcomm with most analysts congratulating the chip giant’s execs on the settlement. Not much more detail into the ins and outs of how Qualcomm and Nokia came to a settlement, and just what exactly the financial details are. Qualcomm execs were obviously very pleased with the deal, vowing to work closer with the Finnish handset maker to “drive the industry forward.” No word, of course, on how much Nokia’s upfront payment is, or the value of its ongoing payments, but Qualcomm noted it would be “very happy” if their other patent paying customers accepted the same terms that Nokia agreed to.

— Nokia Discount?: Nomura’s Richard Windsor notes that Nokia is getting a discount on the disputed patents, and that Qualcomm is making up the value by using some of Nokia’s patents. Seeing that Qualcomm charges its customer a flat rate for its patents, how does the chipmaker expect to make up the balance? Qualcomm execs dodge the question, saying they won’t go into much detail, but that there is “lots of value” to be derived from a “good patent portfolio.”

— Broadcom: Nokia deal has nothing to do with patent spat with Broadcom, which remains ongoing. “Disputes with Broadcom are separate and distinct from disputes we’ve had with Nokia.

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