Qualcomm grows quarterly sales more than expected

News Wireless Global 21 JUL 2016
Qualcomm grows quarterly sales more than expected

Qualcomm reported an improvement in results for its fiscal third quarter to June, as the company rebuilds its licensing business in China, the world's biggest market for smartphones. Revenues rose 4 percent year-on-year and 9 percent sequentially to USD 6.0 billion, better than the company's forecast, and operating profit was up 29 percent annually to USD 1.6 billion. Sales were helped by USD 235 million in deferred revenue recognised after settling its licensing dispute with LG. 

Net profit increased 22 percent to USD 1.4 billion, and adjusted EPS jumped 17 percent to USD 1.16, with an 11-cent boost from the LG deal. Qualcomm generated USD 1.8 billion in operating cash flow, down slightly from USD 2.1 billion in the year-earlier period. 

MSM chip shipments were still down 11 percent year-on-year to 201 million, but grew 6 percent compared to Q2 and came in higher than forecast. Qualcomm estimates the total market shipped 321-325 million devices in the March quarter, for which it earned licensing fees in fiscal Q3. This was increase of 11 percent from a year ago but 4 percent less than the previous quarter. 

For fiscal Q4, Qualcomm forecast sales flat to slightly higher, at USD 5.4-6.2 billion compared to USD 5.5 billion a year ago. MSM shipments will show a similar trend, at an estimated 195-215 million versus 203 million a year ago. EPS is expected to grow 25-40 percent to USD 0.84-0.94, helped by it share buyback programme. 

Categories:

Mobile

Companies:

Qualcomm

Regions:

Global

Tags:

Semiconductors, Financial figures, Handsets

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