Qualcomm delivered strong fiscal second quarter results, said its cost cutting plan is on track and that it is "well positioned to drive the global commercialization of 5G."
The company saw solid demand in its semiconductor business even as it fended off a takeover attempt from Broadcom and continues to try and purchase NXP.
Qualcomm reported second quarter non-GAAP earnings of $1.2 billion, or 80 cents a share, on revenue of $5.2 billion, down 13 percent from a year ago. Earnings under generally accepted accounting were 24 cents a share.
Wall Street was expecting Qualcomm to report earnings of 80 cents a share on revenue of $5.19 billion.
Why were sales down? Qualcomm noted in its release:
The first and second quarters of fiscal 2018 GAAP and Non-GAAP results were negatively impacted by our dispute with Apple and its contract manufacturers (who are Qualcomm licensees), as well as the previously disclosed dispute with another licensee. We did not record any QTL revenues in the first or second quarters of fiscal 2018 for royalties due on sales of Apple's or the other licensee's products.
Qualcomm added that it expects Apple and contract manufacturers to withhold payments until the dispute is resolved.
As for the NXP purchase, Qualcomm said that it is committed to the deal subject to clearance of regulators in China.
Qualcomm's outlook excludes NXP revenue as well as any sales from Apple or its manufacturers.