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Qualcomm lowers outlook on order woes, competition in China
2015-01-29 09:16:00| Telecompaper Headlines
(Telecompaper) 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.
Tags: order
china
competition
outlook
Category:Telecommunications