Qualcomm reported on Wednesday its financials for the previous fiscal quarter.
The chipmaker reported a fiscal second-quarter net income of $1.2 billion, or $1.04 cents a share (statement). Revenue landed in at $5.5 billion.
Wall Street was expecting 96 cents per share on revenues of $5.34 billion.
The company also inked a key licensing agreement with Hisense, allowing Qualcomm to develop 3G and 4G LTE terminals in China.
A separate agreement resolved a licensing dispute with LG Electronics over numerous 3G and 4G LTE wireless technologies. Under the terms of the agreement, LG will be allowed continued access to Qualcomm's patent portfolio.
Chief executive Steve Mollenkopf heralded the company's "stronger than expected performance" across its chipset and licensing businesses.
"We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics. We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan," he added.
For the quarter:
- 189 million shipments of MSM chips, down 19 percent year-over-year
- $70.1 billion in revenue from device sales, down 8 percent year-over-year
- 335-339 million 3G/4G device shipments (approx.), down 13 percent year-over-year
Qualcomm also ended the quarter with $30 billion exactly in cash and equivalents, down from $30.6 billion in the previous quarter.
Qualcomm said for the third quarter that it expects between 68 cents and 78 cents per share, on revenues between $5.2 billion and $6 billion. The hit on the earnings per share is because of acquisition-related items and share-based compensation, the company said.
Wall Street was expecting earnings of $1.02 a share on revenue of $5.56 billion.
The company's stock ($QCOM) shot up just after the markets closed, but fell by more than 1 percent in after-hours trading.