Qualcomm reported revenues for its fiscal first quarter to December down 20 percent from a year earlier to USD 4.8 billion, in line with its outlook. The company said it reached an interim agreement in its licensing dispute with Huawei to receive partial payment of royalties, but was still not receiving any revenue from Apple. Revenues are forecast to fall again in the March quarter, by up to 16 percent.
Qualcomm's operating profit improved to USD 0.7 billion from breakeven a year ago, and net profit rose to USD 1.1 billion from a loss of USD 6.0 billion a year earlier, thanks to fewer one-time charges. In the previous year, Qualcomm took charges for the US tax reform (USD 6 bln) and EU fine (USD 2 bln), while this year it benefited from a tax benefit of USD 570 million. Operating cash flow was still down 80 percent to USD 0.4 billion.
The company confirmed that Huawei is the second customer after Apple that has been withholding royalties due to a licensing dispute. However, after a USD 100 million payment in the previous quarter, Huawei paid another USD 150 million this quarter to Qualcomm as part of an interim agreement while they negotiate a new licensing deal. Another USD 150 million is expected in fiscal Q2.
For the March quarter, Qualcomm forecast revenues flat to 16 percent lower year-on-year at USD 4.4-5.2 billion, and EPS is projected to fall 82-127 percent to USD 0.40-0.50. MSM shipments are estimated at 150-170 million versus 186 million in Q1.
