Chipset company Qualcomm (NASDAQ: QCOM) has announced its Q2 2011 results for the three months ending March 27.

Revenues were $3.88 billion, up 46 percent year-on-year.

Operating income was $1.07 billion, up 38 percent year-on-year, while net income was $999 million, up 29 percent.

Most impressive was that operating cash flow was $1.77 billion, up 123 percent year-on-year; this is 46 percent of revenues.

Because it's making so much cash, Qualcomm now pays out a dividend to shareholders. In the quarter, it returned $316 million or 19c per share. Its next dividend will be 21.5c per share payable on June 24.

Full speed ahead

The growth area was the shipment of CDMA smartphone chips - 118 million units, up 27 percent year-on-year.

Qualcomm's smartphone Snapdragon architecture is used in a wide variety of high profile Android and Windows Phone 7 devices including Sony Ericsson's Xperia Play, Google's Nexus One, HTC's Inspire and HP's forthcoming Pre 3 and TouchPad.

Qualcomm ended the quarter with approximately $22.1 billion in cash, cash equivalents and marketable securities, up $3 billion from the end of Q1 2011.

We are pleased to report record quarterly revenues, and we are raising our revenue and earnings guidance for the year as the demand for smartphone across an array of geographies and tiers continues to grow," commented Paul Jacobs, Qualcomm's chairman and CEO.

"In addition, we have resolved the second of the two previously disclosed licensee disputes. We continue to execute on our strategic priorities as our partners deploy our technologies and solutions to offer leading wireless products and services to consumers worldwide."

[source: Qualcomm (PDF)]