Excluding the USD 815 million settlement, revenue rose 8 percent annually and was stable versus the previous quarter, and EPS increased 29 percent to USD 1.34. Operating cash flow was still up 11 percent year-on-year to USD 0.8 billion, and Qualcomm ended the quarter with total cash of USD 28.9 billion.
Qualcomm reported MSM shipments down 5 percent from a year ago to 179 million, in line with its outlook. The value of device sales in the previous quarter rose more than expected, up 18 percent, helping boost licence revenues.
Qualcomm gave a broad outlook for fiscal Q3 due to uncertainty about its relationship with Apple and its contractors. The latter underpaid royalties to Qualcomm in the previous quarter, although the amounts were reported and this was offset by Qualcomm not making payments to Apple. The expiry of the cooperation agreement between the two companies at the end of 2016 and the pending lawsuits against each other could have an impact on results going forward, Qualcomm warned.
For Q3, Qualcomm forecast revenues of USD 5.3-6.1 billion, which equals a fall of 12 percent to growth of 1 percent year-on-year. EPS is expected down 5-31 percent, at USD 0.67-0.92. MSM shipments are estimated flat to 10 percent lower at 180-200 million, and device sales for the March quarter could be anywhere from a drop of 6 percent to growth of 7 percent.
Qualcomm said it still plans to complete the takeover of NXP Semiconductors before the end of this calendar year. The company also increased its quarterly dividend by 7.5 percent to USD 0.57 per share.
