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Qualcomm Inc. recorded a loss in its last quarter as sales of the mobile modem technology unit remained unchanged and its licensing business continued to be adversely affected by a continuing dispute with the company. Apple Inc.
San Diego-Qualcomm, headquartered in the UK, reported a loss of $ 493 million, or 35 cents per share, for a profit of $ 168 million, or 11 cents a share. cents per share, during the same period of the previous year. Qualcomm also struggled with spending in the last quarter as its total cost increased 16% to $ 6.46 billion.
On an adjusted basis, Qualcomm reported a profit of 90 cents per share, exceeding the 83 cents per share expected by badysts surveyed by FactSet. .
Qualcomm achieved sales of $ 5.8 billion for the quarter, down 2% from the previous year. Analysts had forecast $ 5.53 billion.
The company had $ 4.65 billion in revenue from its chipset production segment for mobile devices, which is about the same as last year. The company's pre-tax earnings dropped 18 percent to $ 796 million, according to the company. However, Qualcomm indicated that mobile modem shipments had increased by 5%.
In its licensing business, sales fell 6% to $ 1.14 billion and pre-tax earnings dropped 11% to $ 739 million. Qualcomm did not record any license revenue during the quarter with Apple, which withholds Qualcomm's royalty payments as a result of a dispute over the company's licensing practices.
Qualcomm accused Apple of transferring its intellectual property to Intel Corp. chips for new models of iPhones.
Meanwhile, a federal judge ruled that Qualcomm had to surrender some of its patents to rival chip suppliers as part of a lawsuit brought by the Federal Trade Commission.
Qualcomm's shares were down 3.5% in trading after regular business hours. Shares of the company closed down 0.7% earlier Wednesday.
For the current quarter – the first of its new fiscal year – Qualcomm expects revenues between $ 4.5 billion and $ 5.3 billion and earnings per share between 78 and 88 cents. . Adjusted earnings are expected to be between $ 1.05 and $ 1.15 per share, while badysts expect a consensus of 94 cents per share.
Write to Micah Maidenberg at the address [email protected]
Qualcomm Inc. a loss in the last quarter, as sales of its mobile modem technology group were stable and its Licensing activity continued to be affected by ongoing conflict with Apple Inc.
Qualcomm, based in San Diego, recorded a loss on Wednesday of $ 493 million, or 35 cents per share, against a profit of $ 168 million, that's 11 cents a share, a year ago. Qualcomm also struggled with spending in the last quarter as its total cost increased 16% to $ 6.46 billion.
On an adjusted basis, Qualcomm reported a profit of 90 cents per share, exceeding the 83 cents per share expected by badysts surveyed by FactSet. .
Qualcomm achieved sales of $ 5.8 billion for the quarter, down 2% from the previous year. Analysts had forecast $ 5.53 billion.
The company had $ 4.65 billion in revenue from its chipset production segment for mobile devices, which is about the same as last year. The company's pre-tax earnings dropped 18 percent to $ 796 million, according to the company. However, Qualcomm indicated that mobile modem shipments had increased by 5%.
In its licensing business, sales fell 6% to $ 1.14 billion and pre-tax earnings dropped 11% to $ 739 million. Qualcomm did not record any license revenue during the quarter with Apple, which withholds Qualcomm's royalty payments as a result of a dispute over the company's licensing practices.
Qualcomm accused Apple of transferring its intellectual property to Intel Corp. chips for new models of iPhones.
At the same time, a federal judge said earlier this week that Qualcomm was to license some of its patents to competing chip suppliers as part of a lawsuit filed by Federal Trade Commission. According to some badysts, Qualcomm's decision could break the licenses of device manufacturers rather than chip suppliers.
In a telephone conversation with badysts, chief executive Steve Mollenkopf said the FTC's decision was "incorrect". He added that the company was focusing on the settlement of the case, which was due to be tried in January.
"There is nothing in the order that complicates things and, in the meantime, we are not obliged to do things differently with the company". Mollenkopf said:
A slowdown in global smartphone sales is compounding Qualcomm's licensing issues. The company expects a 22% drop in modem chip shipments, about 185 million units, over the three months ending in December. The company said the decline partly reflected Apple's release of new iPhones without Qualcomm modem chips.
Shares in Qualcomm were down 4.3% after trading hours. Shares of the company closed down 0.7% earlier Wednesday.
For the current quarter – the first of its new fiscal year – Qualcomm expects revenues between $ 4.5 billion and $ 5.3 billion and earnings per share between 78 and 88 cents. . Adjusted earnings are expected to be between $ 1.05 and $ 1.15 per share, while badysts expect a consensus of 94 cents per share.
Qualcomm faced a series of challenges in its last fiscal year. Earlier this year, the company withstood a public offer to buy Broadcom Inc., an operation eventually canceled by President Trump.
In June, Qualcomm announced the acquisition of Dutch chip maker NXP Semiconductors NV, worth $ 44 billion, after failing
Qualcomm also remains grappling with a separate dispute with the manufacturer Chinese smart phone Huawei Technologies Co., which also retains the payment of royalties.
Qualcomm said it repurchased 254.6 million shares worth $ 21.14 billion in September, meeting a commitment made after dropping its offer on NXP.
– Tripp Mickle contributed to this article.
Write to Micah Maidenberg at the address [email protected]
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