A couple of weeks away from the end of its Q2, Spreadtrum (NASDAQ:SPRD) has become more optimistic about its performance for the quarter. The company on Wednesday updated revenue guidance for the period, predicting a top line of $270 million-$278 million.
This would represent a quarter-over-quarter increase of 42.9%-47.1%. It is also quite a boost from Spreadturm's previous guidance, which was $220 million-$228 million.
In the press release announcing the news, the firm quoted CEO Leo Li as saying the guidance increase is "due to the continuing strong demand throughout the quarter for low-cost smartphones. We are at the start of a multi-year cycle in China and emerging markets of subscribers transitioning from 2.5G feature phones to smartphones."
Spreadtrum's Q2 ends on June 30.
Fool contributor Eric Volkman has no position in Spreadtrum. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.