Qualcomm Q2 tops estimates
Qualcomm published second quarter financials Wednesday that topped estimates but warned that its looming legal battle with Apple could affect its outlook.
The tech giant reported a net income of $749 million, or 50 cents per share.
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Qualcomm said revenue was $5.02 billion, down 9.6 percent year over year. On an adjusted basis, Qualcomm reported revenue of $5.99 billion with non-GAAP earnings of $1.34 per share.
Wall Street was looking for earnings of $1.19 per share with $5.89 billion in revenue.
Qualcomm said revenues were negatively impacted by a reduction related to the BlackBerry arbitration decision, which it says totaled $974 million.
Qualcomm still faces a similar legal battle with Apple. The iPhone maker has accused Qualcomm of overcharging for its chips and withholding nearly $1 billion in contractual payments.
Legal battles aside, Qualcomm CEO Steve Mollenkopf said the the company continues to see momentum in the areas of IoT, security, networking and automotive, the latter of which Qualcomm hopes to bolster with its agreement to acquire NXP Semiconductors.
"We will continue to protect the value of our technologies, which enables today's robust mobile communications ecosystem, and invest in R&D that will drive the leading edge of mobile computing and connectivity for decades to come -- focusing on areas where our technologies will have the most impact and generate the best returns," Mollenkopf said in a statement.
Other numbers of note from the quarter:
- 179 million shipments of MSM chips
- $82.6 billion in revenue from device sales
- 398-402 million 3G/4G device shipments (approx.)
Qualcomm also ended the quarter with $28.9 billion exactly in cash and equivalents, down from $29.8 billion in the previous quarter.
For the current quarter, Qualcomm expects earnings of $1.16 a share with $6 billion in revenue. Qualcomm noted that its guidance range "does not include the case where no payments are made by Apple suppliers."
Wall Street is expecting earnings of $1.10 a share on revenue of $5.95 billion.