Qualcomm reported revenues for its fiscal fourth quarter down 27 percent year-on-year to USD 4.8 billion, as the resumption of licence payments from Apple was unable to offset the weakness in the smartphone market. The sales were at the low end of the company's guidance. Net earnings still increased, to USD 0.42 from a loss of USD 0.36 per share a year ago, thanks to fewer one-time charges and the group's share buyback programme.
Qualcomm said licensing revenues in the quarter were impacted by the end of its interim agreement with Huawei in Q3; it did not receive any royalties from Huawei in Q4. While the companies remain in talks on a new licensing deal, a final agreement has not been reached yet.
Total licensing revenues in the quarter rose 4 percent to USD 1.16 billion thanks to the resumption of payments from Apple and its manufacturers. Qualcomm's main chipset business, QCT still posted revenues down 22 percent to USD 3.61 billion, as MSM shipments fell 34 percent year-on-year to 152 million.
Qualcomm CEO Steve Mollenkopf said the company executed well on its priorities in the past year - moving ahead the commercialization of 5G, completing a number of important licence agreements and executing its product roadmap. "Our technology and inventions leave us extremely well positioned as 5G accelerates in 2020," he said in a statement.
Qualcomm gave a mixed outlook for its fiscal first quarter to December, forecasting revenues of USD 4.4-5.2 billion, meaning anywhere from a fall of 9 percent to growth of 7 percent on an annual basis. MSM shipments are expected to fall 11-22 percent, and Qualcomm has not included any royalties from Huawei in the forecast. EPS is expected to fall 30-41 percent to USD 0.51-0.61.
The company also announced that interim CFO Akash Palkhiwala will taking on the position permanently. He became interim CFO in August and has been with the company since 2001, holding various finance roles.
