Qualcomm lowers outlook on order woes, competition in China

News Wireless Global 29 JAN 2015
Qualcomm lowers outlook on order woes, competition in China

Qualcomm said revenues for its fiscal first quarter to 28 December rose 7 percent from the year earlier to USD 7.1 billion, with the operating profit jumping 38 percent to USD 2.1 billion, the net profit going 7 percent higher to USD 2.0 billion and diluted earnings per share lifting 7 percent to USD 1.17. The operating cash flow was down 15 percent to USD 2.1 billion, and at the end of the quarter, the company had cash of USD 31.6 billion. MSM chip shipments rose 27 percent to 270 million units, while total reported device sales slipped 8 percent to USD 56.4 billion. 

CEO Steve Mollenkopf said that despite the strong quarter, the company was lowering its revenue outlook for the semiconductor business for the first half and its EPS forecast. The changes reflect the company’s revised expectations related to OEM mix, sales to a large customer and heightened competition in China. Mollenkopf added that Qualcomm resolved its dispute with a licensee in China and that the country continued to present significant opportunities, particularly with the rollout of 3G/4G multimode. Nevertheless, the company is still the subject of an investigation by the China National Development and Reform Commission, and Qualcomm continues to believe that certain licensees in China are not fully complying with their contractual obligations.

The company expects global 3G/4G device shipments to be around 1.35 billion for calendar year 2014 but does not believe all device shipments for the year will be reported within the time periods required by license agreements. Accordingly, although it expects 3G/4G device shipments to reach 1.5-1.6 billion for calendar year 2015, it sees 1.135-1.175 billion 3G/4G device shipments getting actually reported through the first calendar quarter.

For the second fiscal quarter, Qualcomm is guiding for revenues of USD 6.5-7.1 billion, with diluted EPS at 1.08-1.20 and MSM chip shipments to 220-240 million.

For the full year, revenues are forecast at USD 26.0-28.0 billion, and diluted EPS now at USD 4.04-4.34 from the previous guidance of 4.33-4.63.

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Mobile

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Qualcomm

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Semiconductors, Sales figures, Financial figures, Wholesale, Handsets

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