according to a post on XDA dev,
"It seems that IQFD is one of two CIQ daemons launched by init. I believe CIQ stands for Carrier IQ. This startup company is a provider of intelligence solutions to the wireless industry, using embedded diagnostic software, to give them a real-time picture of network activity. Carrier IQ's client list includes Sprint."
see thread:
[Q] What is IQFD? - xda-developers
it gives more detailed answers including what you'd see if you peeked into the process to see what it's actually running @ diff times