Wireless technology firm QUALCOMM, Inc. (NASDAQ: QCOM – $80.71) reported 2nd quarter adjusted net income was up 12% to $1.31 vs. $1.17 a year ago. The consensus was for $1.22. Revenue was up 4% to $6.37 billion, but the Street was looking for $6.5 billion. The company provided guidance for Q3 EPS of $1.15 to $1.25 and revenue of $6.2 – $6.8 billion, but expectations priced into the shares were for the higher-end of the ranges, so disappointing from what I feel were aggressive analyst views. Hence, the shares retreated in afterhours trading. QUALCOMM believes it can earn $5.05 to $5.25 for the full year ending September 30, on revenue of $26 – $27.5 billion, up from last fiscal year’s $24.87 billion. Assuming $5.15, the shares trade at a multiple of 15.5 times earnings. Absent any adverse events, fiscal 2015 can come in at around $5.70/share. There are concerns that China will aggressively move into QCOM’s highly lucrative chipset business, but I believe there is room for multiple players in the space as smartphone technology grows at lightning speed. Also, there is an issue with China possibly refusing to pay LTE-TDD licensing fees to QUALCOMM and, thus, such future payments may be at risk. All told, the shares are reasonably valued in my opinion and merit retention in aggressive accounts for their long-term price appreciation potential.