Qualcomm (News - Alert) saw a 35% increase in third-quarter earnings and increased its guidance for the rest of the fiscal year – noting how it has acquired Atheros Communications.

The company also has benefited from increased demand for its chips, according to a report in The Wall Street Journal.

It provides materials for “code division multiple access,” used in mobile devices. The Journal reports.

Qualcomm chips are also used in 3G cellphones, The Journal adds.

"Qualcomm delivered strong year-over-year results again this quarter as our business performed well across all key guidance metrics. In addition, we successfully completed the acquisition of Atheros (News - Alert), positioning us to further expand our opportunities going forward," Paul E. Jacobs, chairman and CEO of Qualcomm, said in a company press release. "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, driven primarily by strong global smartphone adoption and the addition of Atheros."

"Our results and guidance really highlight the fact that around the world, smartphone excitement is continuing," Jacobs added in a conference call, reports The Journal. "As we look beyond that to mobile computing and new tablet devices coming to market, I think there's just a lot to look forward to."

For the quarter ended on June 26, Qualcomm saw a profit of $1.04 billion, 61 cents a share, up from $767 million, 47 cents a share, during the same time period in 2010, The Journal reports.

Revenue for the recent quarter increased 34% to $3.62 billion, The Journal said.

Qualcomm shipped 120 million chipsets during the third quarter, a 17% increase from 2010.

The company projects that shipments will be between 120 million and 125 million units during the upcoming fourth quarter. Analysts are predicting shipments will be between 128 million and 130 million during the fourth quarter, The Journal says.

The Journal adds that the company predicts fourth quarter profits to be between 75 cents and 80 cents, excluding items. Analysts predict 76 cents a share, The Journal said.

Qualcomm also predicts revenues of $3.86 billion to $4.16 billion during the quarter, while Thomson Reuters (News - Alert) is predicting $3.94 billion for the quarter, The Journal said.

Qualcomm acquired Atheros for $3.1 billion in May. It provides chips for Wi-Fi signals, The Journal said.

The deal will increase Qualcomm’s “presence in existing businesses and grow into a variety of adjacent businesses including home, enterprise and carrier networking and other communications solutions,” according to a report on TMCnet.