Chipset company Qualcomm (NASDAQ: QCOM) has announced its Q3 2011 results for the three months ending June 26.

Revenues were $3.62 billion , up 34 percent year-on-year.

Net income was $1.04 billion, up 35 percent.

Operating cash flow was $1.26 billion, up 33 percent year-on-year; this is 35 percent of revenues.

Because it's generating so much cash, Qualcomm now pays out a dividend to shareholders. In the quarter, it returned $360 million or 22c per share.

Strength in numbers

The growth area was the shipment of CDMA smartphone chips - 120 million units, up 17 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 delivered strong year-over-year results again this quarter as our business performed well across all key guidance metrics," said Paul Jacobs, chairman and CEO.

"Looking forward, we continue to see healthy growth in CDMA-based device shipments of approximately 18 percent in calendar year 2011, and we are pleased to be raising our revenue and non-GAAP earnings guidance for the fiscal year."

Qualcomm ended the quarter with approximately $20.2 billion in cash, cash equivalents and marketable securities, down almost $2 billion from the end of Q2 2011.

This dip was attributed to the purchase of Atheros, which set the company back by $3.1 billion upon the close of the deal.

[source: Qualcomm IR (PDF)]